State RegulationsNY specificDifficulty 1/5
Under N.Y. Ins. Law §3219, an annuity contract delivered in New York that requires payments to the insurer must provide that, after the first payment, any subsequent payment has a grace period of:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3219, an annuity or pure endowment contract requiring payments to the insurer must provide a grace period of 31 days following the due date of any payment due after the first payment, and the contract continues in full force during the grace period. If a claim arises during the grace period, the insurer may deduct the unpaid payment from the benefit payable.
Why the other options are wrong
- B) 61 days is the grace period required for flexible premium LIFE insurance policies; annuity contracts receive the 31-day grace period.
- C) 10 days is the grace period for monthly premium HEALTH policies; it does not apply to annuity contracts.
- D) 7 days is the grace period for weekly premium HEALTH policies and has no application to annuity payments.
Memory hook
Annuity grace = 31 days, like ordinary life; the health figures (10 and 7 days) do not apply.