State RegulationsNY specificDifficulty 2/5
Within five days of receiving an accelerated death benefit application, a New York life insurer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §3230(a)(2), within 5 days of receiving an accelerated death benefit application the insurer must explain the basis for paying or denying the benefit. Processing must then be completed within 30 days under §3230(a)(1), subject to third-party delay. This forces an early, documented explanation rather than a silent delay during a critical illness.
Why the other options are wrong
- A) Payment is not automatic; the insurer must first explain the basis for its decision under §3230(a)(2) and complete processing within 30 days under §3230(a)(1).
- C) No approval from the Superintendent of Financial Services is required for an accelerated benefit application; the insurer decides under §3230.
- D) An independent medical examination is not a stated precondition under §3230; the insurer must explain the basis for its decision within 5 days.
Memory hook
Five days to say why you will pay or deny.