§ 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.