State RegulationsNY specificDifficulty 3/5
A New York insurer gives its required notice of the group health conversion privilege later than the statute allows after coverage terminates. Under N.Y. Ins. Law §3221(e), what is the effect on the former employee's conversion right?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §3221(e), the insurer must notify the covered person of the conversion privilege within 15 days before or after termination of coverage. When that notice is late, the window extends so the person has 45 days after the notice to apply, but coverage may not extend beyond 90 days after termination. The dual structure preserves the applicant's opportunity without letting the extension run on indefinitely.
Why the other options are wrong
- A) The privilege is not forfeited; late notice extends, rather than extinguishes, the applicant's window.
- B) The extension is capped: 45 days after the late notice and never more than 90 days after termination.
- C) No Superintendent's order is involved; the statute itself fixes the extended 45-day window and the 90-day cap.
Memory hook
Late notice opens a 45-day door, but 90 days after termination it slams shut.