An Albany employee's group life coverage ended when he left his job. The insurer's notice of the conversion privilege was late — sent after the initial deadline had passed but within the statutory outside cap. What is the effect on his conversion privilege?

Why C is correct

Under N.Y. Ins. Law §3220(a)(8), the insurer must notify the person of the conversion privilege within 15 days before or after the qualifying event. If notice is late — given more than 15 days after the event but within 90 days after the event — the group coverage is extended so the person still has 45 days after the notice to apply, with 90 days after the event serving as the outside cap. Late notice therefore extends the conversion privilege rather than destroying it.

Why the other options are wrong

• A) The privilege survives late notice — New York extends the window instead of forfeiting the individual's right to convert.
• B) The statute's remedy is an extension of the time to convert, not a penalty payment that substitutes for the lost privilege.
• D) There is no unlimited right: the extension mechanics end at the 90-day outside cap after the event.

Memory hook

Late insurer notice stretches the group-life conversion window to 45 days — but never past the 90-day cap.