State RegulationsNY specificDifficulty 3/5
Under N.Y. Ins. Law §3205, a person with an insurable interest may insure the life of a minor under fourteen years and six months of age. What additional constraint applies to such a policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §3205, a person with an insurable interest — or that person's guardian — may insure the life of a minor under fourteen years and six months of age, but the policy remains subject to the amount limits set by N.Y. Ins. Law §3207. Section 3205 supplies who may insure a young minor; §3207 caps how much may be written on that life.
Why the other options are wrong
- A) The amount is not unlimited: §3207 imposes specific limits on life insurance on minors under fourteen years and six months of age.
- B) No Superintendent pre-approval requirement applies; the safeguard New York uses is the §3207 amount limit, not case-by-case approval.
- C) A minor of that age does not supply written consent to the purchase; the statute relies on insurable interest plus the §3207 limits instead.
Memory hook
§3205 says WHO; §3207 says HOW MUCH on a young minor.