State RegulationsNY specificDifficulty 2/5
A Syracuse policyholder diagnosed with a qualifying condition applies for an accelerated death benefit. Under N.Y. Ins. Law §3230, within what period must the insurer complete processing the application?
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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)(1), the insurer must complete processing of an accelerated-benefit application within thirty days of receiving it, unless there is a delay caused by a third party outside the insurer's control. This deadline is part of the consumer protections the Superintendent of Financial Services enforces for living-benefit claims.
Why the other options are wrong
- A) Five days is the period for the insurer to explain the basis for paying or denying the benefit under §3230, not the full processing window.
- C) Ten days has no role in §3230 processing; it appears in other contexts, such as the life settlement owner's notice to the insurer.
- D) Fifteen days is the life settlement verification response period under §7813(b), not the accelerated-benefit processing period.
Memory hook
Accelerated benefit processing: thirty days to the finish line.