(1) In a statutory power of attorney, the language granting power with respect to insurance and annuity transactions empowers the agent to:

(a) Continue, pay the premium or assessment on, modify, rescind, release, or terminate a contract procured by or on behalf of the principal which insures or provides an annuity to either the principal or another person, whether or not the principal is a beneficiary under the contract;

(b) Procure new, different, and additional contracts of insurance and annuities for the principal and the principal's spouse, children, and other dependents; and select the amount, type of insurance or annuity, and mode of payment;

(c) Pay the premium or assessment on, modify, rescind, release, or terminate a contract of insurance or annuity procured by the agent;

(d) Designate the beneficiary of the contract, but an agent may be named a beneficiary of the contract, or an extension, renewal, or substitute for it, only to the extent the agent was named as a beneficiary under a contract procured by the principal before executing the power of attorney;

(e) Apply for and receive a loan on the security of the contract of insurance or annuity;

(f) Surrender and receive the cash surrender value;

(g) Exercise an election;

(h) Change the manner of paying premiums;

(i) Change or convert the type of insurance contract or annuity, with respect to which the principal has or claims to have a power described in this section;

(j) Change the beneficiary of a contract of insurance or annuity, but the agent may not be designated a beneficiary except to the extent permitted by paragraph (d) of this subsection (1);

(k) Apply for and procure government aid to guarantee or pay premiums of a contract of insurance on the life of the principal;

(l) Collect, sell, assign, hypothecate, borrow upon, or pledge the interest of the principal in a contract of insurance or annuity; and

(m) Pay from proceeds or otherwise, compromise or contest, and apply for refunds in connection with, a tax or assessment levied by a taxing authority with respect to a contract of insurance or annuity or its proceeds or liability accruing by reason of the tax or assessment.

Source: L. 92: Entire part added, p. 311, § 1, effective July 1.