State RegulationsNY specificDifficulty 2/5
After completely withdrawing from New York's individual accident and health market, an insurer decides it wants to write individual health policies in the state again. What does New York law provide?
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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(g), complete withdrawal from the individual accident and health market carries a price: the insurer that leaves after giving the required notice and filing its written plan may not re-enter that market for five years. The bar discourages insurers from exiting when claims run high and returning when the risk looks better.
Why the other options are wrong
- A) Notifying the Superintendent does not lift the re-entry bar.
- C) Two years is the incontestability period, not the re-entry bar.
- D) Offering coverage to former insureds does not cure the disqualification.
Memory hook
Leave the individual market, sit out five years.