State RegulationsNY specificDifficulty 1/5
How does New York law treat statements made by an applicant in a life insurance application?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §3204, statements in a life insurance application are deemed representations and not warranties. Because they are representations, an inaccurate statement does not automatically void the policy; the insurer's ability to defeat a claim is limited unless the misstatement was fraudulent or material to the risk the insurer accepted.
Why the other options are wrong
- A) Warranty treatment would make any inaccuracy an automatic forfeiture; §3204 expressly rejects that treatment for life applications.
- B) A guarantee functions like a warranty; New York instead treats the statements as representations under §3204.
- D) Representations are legally significant statements of fact; they are not mere opinions without effect on the contract.
Memory hook
Applicant statements represent, not warrant — only fraud or a material misstatement defeats.