State RegulationsNY specificDifficulty 1/5
A New York long-term care policy is guaranteed renewable. Which party does that guarantee bind?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Reg 62 (11 NYCRR Part 52), guaranteed renewability is a one-way obligation: it forces the insurer to renew the long-term care policy as long as premiums are paid, regardless of the insured's age, health, or claims. The insured is not chained to the contract - she may stop paying, lapse, or surrender the policy at any time. The guarantee constrains the insurer because that is the party with both the incentive and the power to walk away from a sick claimant.
Why the other options are wrong
- A) The insured is never compelled to keep a policy she no longer wants; the guarantee protects her, it does not imprison her.
- C) Describing an insurer free to decline renewal at each anniversary is optionally renewable coverage, which Reg 62 does not permit for New York long-term care insurance.
- D) Guaranteed renewability is a binding regulatory standard with teeth, not a statement of intent an insurer may disown.
Memory hook
Guaranteed renewable handcuffs the insurer, never the insured.