State RegulationsNY specificDifficulty 1/5
An insurer licensed in New York receives an accelerated death benefit application. Within five days of receipt, what must the insurer do under N.Y. Ins. Law §3230?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §3230(a)(2), within five days of receipt of the application the insurer must explain the basis on which it will pay or deny the accelerated benefit. Together with the thirty-day processing deadline in §3230(a)(1), this keeps a seriously ill policyholder informed while a living-benefits claim is decided.
Why the other options are wrong
- A) Payment is not automatic; the insurer may pay or deny, but it must explain the basis for its decision within five days.
- B) No referral to the Superintendent of Financial Services is required to process an accelerated benefit claim.
- D) Nothing in §3230 requires an independent medical examination within five days of receipt.
Memory hook
Five days to say why: pay or deny, give the basis.