An applicant seeks life insurance on a child who is under fourteen years and six months of age, and the applied-for amount exceeds the applicable statutory limit. Under N.Y. Ins. Law §3207, which of the following correctly states the consequence?

Why B is correct

Under N.Y. Ins. Law §3207, life insurance on a minor under fourteen years and six months of age is limited to the greatest of $50,000, 50% of the applicant's existing life insurance, or 25% in the case of a minor under four years and six months; coverage beyond the limit is void, but the defect is cured when the minor reaches fourteen years and six months. An exception exists where the applicant is a person with an insurable interest on whom the minor is not dependent.

Why the other options are wrong

• A) Only the EXCESS is void, not the whole policy; the policy stands for the permissible amount under §3207.
• C) No DFS rider filing cures an over-limit policy on a minor; the statute's own cure is the minor reaching fourteen years and six months.
• D) Guardianship of the minor does not authorize exceeding the limits; the statutory exception turns on the applicant being a person with an insurable interest on whom the minor is not dependent.

Memory hook

Over the kid-limit? Excess void until 14½ cures it — §3207.