If there is a delay in a life insurer paying the death benefit to the beneficiary when a death claim is made, is the beneficiary entitled to any interest on the death benefit?

 Yes. The Insurance Law requires that interest computed daily at the rate of interest currently paid by the insurer on proceeds left under the interest settlement option be paid from date of death to date of claim.

Back More Info 
Life Insurance Resource Center
Comprehensive information about life insurance from the Insurance Department's Life Insurance Resource Center
URL: http://www.dfs.ny.gov/insurance/clife.htm