State RegulationsNY specificDifficulty 1/5
Under N.Y. Ins. Law §3204, statements made by an applicant in a life insurance application are treated as:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §3204, statements in a life insurance application are representations, not warranties. Combined with the entire contract clause of §3203(a)(4), this means an inaccurate statement does not automatically void coverage absent fraud; instead it gives the insurer a contestable defense during the contestability period. The insurer cannot treat every misstatement as a basis for rescission.
Why the other options are wrong
- A) Warranty treatment would void coverage for any inaccuracy; §3204 rejects that approach absent fraud.
- C) The statute draws no split between health and age answers - all application statements are representations under §3204.
- D) Treating statements as admissions that waive the insurer's defenses misstates §3204; misstatements create a contestable defense, not a waiver.
Memory hook
NY application statements are representations, not warranties.