State RegulationsNY specificDifficulty 3/5
A New York insurer decides to discontinue all of its individual accident and health policies of a particular type. What must it do before refusing renewal on that ground?
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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(g)(2), an insurer that discontinues all coverage of a particular type must give at least 90 days' prior written notice to the Superintendent of Financial Services and to each covered person before the refusal to renew takes effect. The notice requirement gives insureds time to find replacement coverage and lets the Department of Financial Services monitor market withdrawals. The longer 180-day notice period applies only when the insurer withdraws entirely from the individual market.
Why the other options are wrong
- B) 180 days is the notice period for complete withdrawal from the entire individual market under §3216(g)(3), and the Superintendent always receives notice.
- C) No consent mechanism exists; the statute substitutes a notice requirement for insurer discretion, not an insured veto over discontinuance.
- D) Rate filings do not control discontinuance; the statutory prerequisite is timely written notice, not approved rates.
Memory hook
Kill the product line = 90-day notice to DFS and every insured.