State RegulationsNY specificDifficulty 1/5
An individual accident and health policy delivered in New York contains a provision that conflicts with the New York Insurance Law. Under the conformity with state statutes provision, what is the effect?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3216(d)(2)(I), a policy provision that conflicts with New York statutes is read as amended to conform to the minimum requirements of the law, rather than voiding any part of the contract. The policy stays enforceable and the insured retains at least the protections the Insurance Law mandates, even where the drafted clause falls short.
Why the other options are wrong
- B) A defective clause does not void the whole contract.
- C) The insurer gains no option to escape the policy because of the conflict.
- D) No prior corrective endorsement is required; conformity operates by force of law.
Memory hook
Conflict? Amend, don't void.