State RegulationsNY specificDifficulty 3/5
An insurer decides to withdraw completely from New York's individual accident and health market. Which statement describes what the insurer must do and what follows?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3216(g)(3), a complete withdrawal from the individual accident and health market requires 180 days' notice to the Superintendent and to each covered person, together with a written plan; under N.Y. Ins. Law §3216(g)(4) the insurer is then barred from re-entering the individual market for five years. The shorter 90-day notice belongs to the different event of discontinuing all coverage of a particular type.
Why the other options are wrong
- B) This mixes the 90-day discontinuance notice with the withdrawal rule and omits the re-entry bar.
- C) No 30-day notice rule or across-the-board premium refund applies to market withdrawal.
- D) Notice to the Superintendent and to covered persons is mandatory, along with a written plan.
Memory hook
Full exit: 180 days' notice plus a five-year time-out from the market.