Section 3227. Interest upon surrenders, policy loans and other funds

(a)
  Interest, at the rate provided for in section three thousand two hundred
  fourteen of this article, shall be payable by life  insurers,  fraternal
  benefit societies, and life insurance departments of savings banks upon:
  (1)  the value of policies surrendered by policyholders for cash values,
  including the rollover of annuity funds to other entities, and  (2)  the
  funds disbursed as policy loans. Such interest payment shall be added to
  and  be a part of the total sum paid or be paid separately at the option
  of the insurer.
    (b) The interest calculated on amounts described in paragraphs one and
  two of subsection (a) hereof shall  be  calculated  from  the  date  the
  documentation  necessary  to complete the transaction is received by the
  insurer and shall be payable if the funds are not mailed or delivered by
  the insurer within ten working days of said receipt.
    (c) No interest need be payable pursuant to this  section  unless  the
  amount  of  such  interest  is  at  least  twenty-five dollars or if the
  payment of benefits by the insurer has been deferred pursuant  to  other
  provisions of this chapter.
    (d)  Irrespective  of  the  payment of interest in accordance with the
  above provisions, such life insurers, fraternal  benefit  societies  and
  life  insurance  departments  of  savings banks shall make disbursements
  under paragraphs one and two of subsection (a) hereof  as  expeditiously
  as possible.