State RegulationsNY specificDifficulty 2/5
A New York applicant wants to buy life insurance on the life of a child who is under 14 years and 6 months of age. Under the New York Insurance Law, who may apply for coverage on the minor's life?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3205, on the life of a minor under 14 years and 6 months of age, a person with an insurable interest — or that person's guardian — may apply for insurance, subject to the limits the New York Insurance Law places on insurance of minors. The rule protects young minors while still allowing family members and those with genuine economic ties to insure them.
Why the other options are wrong
- B) Parents and guardians are the most common applicants, but §3205 does not make them exclusive; any person with an insurable interest, or that person's guardian, may apply.
- C) Insurable interest is never presumed for minors; §3205 still requires love and affection of close relatives or a substantial economic interest.
- D) A minor too young to contract is not the applicant; the statute allows a person with an insurable interest, or their guardian, to apply on the minor's life.
Memory hook
Under 14 and a half: insurable interest still counts — the holder or their guardian may apply.