State RegulationsNY specificDifficulty 1/5
Which of the following is a type of group that may be insured under a group accident and health policy issued in New York under N.Y. Ins. Law §4235?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §4235, employees of a common employer are the classic eligible group for group accident and health insurance; the employment relationship supplies the common bond on which group coverage is built. Other recognized eligible group types include members of labor organizations, members of bona fide associations, and debtors of a common creditor.
Why the other options are wrong
- A) A group assembled solely to buy insurance lacks the common bond the statute requires; it is not an eligible group.
- C) A store loyalty program creates a marketing relationship, not an employment, union, or association bond recognized by §4235.
- D) Insurers cannot manufacture groups by selecting healthy individuals; eligibility flows from the group's own relationship, not from underwriting selection.
Memory hook
Employees of one employer: the classic eligible group under 4235.