State RegulationsNY specificDifficulty 2/5
An applicant in Manhattan describes her health history in her life insurance application. Under New York law, those statements are treated as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3204, statements in a life insurance application are representations rather than warranties. A misrepresentation therefore does not automatically void the policy; the insurer must show the statement was false and material (or fraudulent), and even then its ability to contest is limited in time by the incontestability provision required by §3203(a)(3).
Why the other options are wrong
- B) Warranties would make any inaccuracy void the policy; §3204 rejects that treatment for statements in life applications.
- C) The statements take on their legal character as representations at application, not at the end of the free-look period.
- D) The statements have real legal effect: a material or fraudulent misrepresentation can support a contest within the incontestability period under §3203(a)(3).
Memory hook
Representations, not warranties — false AND material (or fraudulent) before it matters.