A life insurance policy issued in New York on a minor who is under 14 years and 6 months of age exceeds the limits set by N.Y. Ins. Law §3207. What is the effect on the policy?

Why A is correct

Under N.Y. Ins. Law §3207(b), life insurance on a minor under 14 years and 6 months of age may not exceed the statutory limits - generally the greatest of the fixed statutory amount, the applicable percentage of the applicant's existing life insurance, or, for a very young minor, the special percentage limit. A policy exceeding those limits is not void in its entirety: the excess is void, and the defect is cured when the minor reaches 14 years and 6 months. A separate exception exists for a person with an insurable interest on whom the minor is not dependent.

Why the other options are wrong

• B) The statute does not void the whole contract; only the amount above the limit is affected, and even that defect is cured when the minor reaches 14 years and 6 months.
• C) No advance approval mechanism exists; the statute itself fixes the consequence when the minor-insurance limits are exceeded.
• D) Treating the full amount as payable would ignore the protective limits of §3207; the excess above the limit is void until the minor reaches the curing age.

Memory hook

Too much insurance on a young minor: the excess is void, cured at fourteen and a half.