State RegulationsNY specificDifficulty 1/5
Under Reg 62, how must a New York insurer handle the nonforfeiture benefit when a consumer applies for long-term care insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Reg 62 (11 NYCRR Part 52), New York long-term care insurers must offer applicants a nonforfeiture benefit. Because the feature adds cost, the rule is an offer requirement rather than a mandate: the applicant decides whether to accept it or to decline it and pay a lower premium. The choice belongs to the consumer, not to the insurer or the producer.
Why the other options are wrong
- A) Making the benefit compulsory with no right to decline overstates the rule; the regulation requires an offer that the applicant may reject.
- B) The offer requirement runs to every applicant; the applicant's health at application has nothing to do with whether the nonforfeiture benefit must be offered.
- D) Policy features are elected when the policy is designed and issued, not added automatically after a claim has been paid.
Memory hook
Nonforfeiture is offered, not imposed - the applicant holds the pen.