State RegulationsNY specificDifficulty 1/5
Under N.Y. Ins. Law §3230(a)(1), an insurer that receives an application for an accelerated death benefit must complete processing within:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §3230(a)(1), the insurer must complete processing of an accelerated death benefit application within 30 days of receiving it, except where a third party causes delay. The statute also imposes shorter duties: within 5 days of receipt the insurer must explain the basis for paying or denying the benefit. Missing the 30-day processing deadline puts the insurer at odds with the Superintendent of Financial Services.
Why the other options are wrong
- A) 5 days is the period for the insurer to explain its basis for paying or denying under §3230(a)(2) and the third-party prohibition period - not the processing deadline.
- B) 15 days is the group life conversion notice window under §3220(a)(8), not the accelerated benefit processing deadline.
- C) 45 days is the late-notice conversion extension under §3220(a)(8), not the accelerated benefit processing deadline.
Memory hook
Accelerated benefits: 30 days to process, 5 days to explain.