State RegulationsNY specificDifficulty 1/5
A minor owns a life insurance policy on the minor's own life in New York. Under N.Y. Ins. Law §3207, who may be named as beneficiary?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §3207, when a minor owns a life insurance policy, the permissible beneficiaries are limited to the minor and the minor's parent, spouse, brother, sister, child, or grandparent. This family-oriented restriction keeps a young policyowner from being steered into naming outside parties with no connection to the insured minor.
Why the other options are wrong
- A) The class is restricted by statute, not open to any person or entity the minor picks; business entities are not on the §3207 list.
- B) Parents are on the list, but so are the minor's spouse, brother, sister, child, and grandparent — the restriction is not limited to parents or a guardian.
- D) The minor's estate is not the only option; the statute's list of family-member beneficiaries controls under §3207.
Memory hook
Minor-owned policy: beneficiaries stay in the family circle — §3207.