State RegulationsNY specificDifficulty 1/5
A policyholder in Buffalo asks her insurer to change a provision of her individual accident and health policy. Under New York's entire contract provision, such a change is valid only if it is
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §3216(d)(1)(A), no change to an individual health policy is valid unless it is approved by an executive officer of the insurer and is evidenced by an endorsement attached to or made part of the policy. This concentrates modification authority at the top of the company and creates a written record the policyholder can verify. Informal adjustments, no matter who suggests them, have no effect on the contract.
Why the other options are wrong
- A) An agent has no authority to approve contractual changes, in writing or otherwise.
- C) Oral agreements never modify the policy.
- D) The Department of Financial Services does not approve endorsements to individual policies.
Memory hook
Only an executive officer's endorsed change counts.