43:6A-27 - Settlement options - New Jersey Statutes

43:6A-27.  Settlement options
    Any such group policy or policies shall provide that payment of any death benefits which are payable by the insurance company may be made in one sum directly to the beneficiary as hereinafter provided, in equal installments over  a period of years or as a life annuity or in such other manner as may be made  available by the insurance company.  An insured person may make arrangements  for settlement, and may alter from time to time during his lifetime any  arrangement previously made, by making written request to the insurance company  through the policyholder.  Upon the death of an insured person, a beneficiary  to whom a benefit is payable in one sum by the insurance company may likewise  arrange for a settlement as described above. If an insured person's or  beneficiary's request for settlement of any death benefit in equal installments  over a period of years or as a life annuity pursuant to the foregoing is  approved by the policyholder, the amount of such installment or such life  annuity, as the case may be, shall be determined on the basis of such  applicable mortality tables as shall have been adopted by the retirement system  and are in effect at the death of the insured person. Any arrangement for  payment under the group policy to a beneficiary shall be in lieu of that  provided by sections 17 b., 19 and 20.

     L.1973, c. 140, s. 27, eff. May 22, 1973.