A New York applicant purchases life insurance on a child who is under 14 years and 6 months of age, and the amount applied for exceeds the limits set by the New York Insurance Law. What is the effect on the excess coverage?

Why D is correct

Under N.Y. Ins. Law §3207, insurance on a minor under 14 years and 6 months of age is limited to the greatest of $50,000, 50% of the applicant's existing life insurance, or 25% for a minor under 4 years and 6 months; coverage in excess of the limit is void, but the defect is cured when the minor reaches 14 years and 6 months. A separate exception permits a person with an insurable interest on whom the minor is not dependent to exceed the limits.

Why the other options are wrong

• A) Only the excess is void; the coverage within the permitted limits remains in force under §3207.
• B) The statute voids the excess; it does not require a refund of all premiums with interest.
• C) Superintendent approval is not a cure; the excess becomes valid automatically when the minor reaches 14 years and 6 months.

Memory hook

Excess on a minor's life is void — and it self-heals at 14 and a half.