State RegulationsNY specificDifficulty 3/5
Under N.Y. Ins. Law §3230, a five-day prohibition period applies to accelerated death benefit applications. When does this prohibition period begin?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3230(a)(2), the five-day prohibition period begins when the accelerated-benefit application information is transmitted to a third party. The window is measured from that transmittal — not from policy issue, death, or the insurer's receipt of the application — and is part of the protections the Superintendent enforces around living-benefit claims.
Why the other options are wrong
- B) Policy issue is unrelated to the prohibition period; §3230(a)(2) ties it to transmittal of application information to a third party.
- C) The insured's death does not start the period; accelerated benefits are living benefits paid before death.
- D) Receipt of the application starts the insurer's obligation to explain its decision within five days — a separate requirement from the prohibition period.
Memory hook
The prohibition clock starts at third-party transmittal.