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State RegulationsNY specificDifficulty 2/5

While processing a claim under an individual accident and health policy, an insurer's field representative orally tells the insured that a policy requirement will be waived for this claim. The insurer later denies the claim based on that requirement. Under N.Y. Ins. Law §3216(d)(1)(A), the oral waiver is:

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Answer & full 3-part explanation (select an option above, or peek)

Why B is correct

Under N.Y. Ins. Law §3216(d)(1)(A), the entire contract provision required in New York individual accident and health policies states that no agent or broker has authority to change the policy or to waive any of its provisions. A field representative's oral promise therefore cannot waive a policy requirement, and the insurer may enforce the provision as written. Only a change approved by an executive officer and endorsed on or attached to the policy can alter the contract.

Why the other options are wrong

  • A) Acting as the insurer's representative in the field does not confer authority to waive policy provisions; the entire contract provision expressly denies agents and brokers that power.
  • C) Ratification of an agent's waiver is not contemplated by the provision; altering the contract requires a valid officer-approved change.
  • D) There is no claim-by-claim waiver power at all; the agent or broker cannot waive a provision even once.

Memory hook

Agents and brokers cannot change or waive; only an officer's endorsed change counts.

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