Section 3214. Interest upon proceeds of life insurance policies and annuity contracts

(a) If an action to recover the proceeds due under  a  policy  of  life  insurance  or  contract  of  annuity  delivered  or issued for
  delivery in this state  results  in  a  judgment  against  the  insurer,
  interest thereon shall be paid from the date of the death of the insured
  or  annuitant  in  connection  with  a  death  claim on a policy of life
  insurance or contract of annuity and from the date  of  maturity  of  an
  endowment  contract to the date the verdict is rendered or the report or
  decision is made, computed pursuant to the provisions of subsection  (c)
  hereof,  and  thereafter  in accord with the provisions of sections five
  thousand two and five thousand three  of  the  civil  practice  law  and
  rules.
    (b)  If  an action to recover is commenced and a settlement is reached
  before the verdict is rendered  or  the  report  or  decision  is  made,
  interest  on  the settlement shall be paid from the date of the death of
  the insured or annuitant in connection with a  death  claim  on  such  a
  policy  of  life  insurance  or contract of annuity and from the date of
  maturity of an endowment contract to the date of payment computed  under
  the provisions of subsection (c) hereof.
    (c)  If  no action has been commenced, interest upon the principal sum
  paid to the beneficiary or policyholder shall be computed daily  at  the
  rate  of  interest  currently paid by the insurer on proceeds left under
  the interest settlement option, from the date of the death of an insured
  or annuitant in connection with a death claim on such a policy  of  life
  insurance  or  contract  of  annuity and from the date of maturity of an
  endowment contract to the date of payment and shall be added to and be a
  part of the total sum paid.
    (d) This section shall not require the payment  of  interest  for  any
  period  during  which  an  insurer is required to pay interest under any
  state or federal law pertaining to interpleader.
    (e) This section shall not apply to policies or contracts issued prior
  to  September  first,  nineteen  hundred  seventy-five,  which   contain
  specific provisions to the contrary.