State RegulationsNY specificDifficulty 1/5
Under N.Y. Ins. Law §3207, a minor who is fourteen years and six months of age or older may take which of the following actions regarding a life insurance policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3207, a minor aged fourteen years and six months or older may contract for and own a life insurance policy on the minor's own life and may exercise all the rights and privileges of the policy without needing a guardian. Below that age, ownership and amounts are restricted, but at fourteen years and six months the minor has full policy capacity.
Why the other options are wrong
- B) A minor-owner's beneficiary choices are not limited to a parent; §3207 permits the minor, parent, spouse, brother, sister, child, or grandparent.
- C) The $50,000 figure belongs to the limits on policies on the lives of minors UNDER fourteen years and six months; at or above that age the §3207 amount limits no longer bind.
- D) A minor aged fourteen years and six months or older can be both owner and beneficiary, not merely the insured, under §3207.
Memory hook
At 14½ a minor can run a policy solo — §3207.