State RegulationsNJ specificDifficulty 1/5
Under N.J.S.A. 17B:24-2, at what age may a minor in New Jersey validly contract for life insurance or annuities on the minor's own life, body, or health?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
N.J.S.A. 17B:24-2 lowers the ordinary age of contractual capacity for a narrow insurance purpose: a minor aged 15 may validly contract for life insurance or annuities on the minor's own life, body, or health. The statute gives young people direct access to insurance on their own lives despite general minority incapacity, and contracts within this authorization are enforceable in New Jersey. The 15-year threshold is specific to insurance on the minor's own life or health — it does not confer general contracting power for other purposes.
Why the other options are wrong
- B) The insurance contracting age under N.J.S.A. 17B:24-2 is not 12; that age carries no capacity to insure one's own life in New Jersey.
- C) Age 18 is significant in the same statute for payment limits on minors' policies, not as the contracting age, which arrives earlier at 15.
- D) Age 21 reflects the general age of full majority in other contexts; the insurance-specific rule in New Jersey applies years earlier.
Memory hook
Fifteen and insurable: New Jersey lets a minor cover the minor's own life.