State RegulationsNY specificDifficulty 2/5
A New York insurer declines a life insurance application based partly on the results of an HIV-related test. Under N.Y. Ins. Law §2611, the insurer must do which of the following?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §2611, when an adverse underwriting decision rests in whole or in part on an HIV-related test result, the insurer must give the applicant written notice stating the basis for the adverse decision and describing the applicant's opportunities for appeal or review. This gives the applicant a documented explanation and a path to challenge the test result or the decision.
Why the other options are wrong
- B) An oral explanation with no record does not satisfy §2611; the notice of the basis and appeal rights must be in writing.
- C) Routing the explanation through the agent is not the statutory mechanism; the insurer itself owes the written notice under §2611.
- D) No pre-decision Superintendent hearing is required; the review options run to the applicant after written notice, not to a regulator beforehand.
Memory hook
Bad news travels in writing, with appeal rights — §2611.