A New York deferred annuity contract requires ongoing payments to the insurer. Under N.Y. Ins. Law §3219, after the first payment, the contract must provide a grace period for each subsequent payment of...

Why C is correct

Under N.Y. Ins. Law §3219, an annuity or pure endowment contract that requires payments to the insurer must provide that, after the first payment, there is a grace period of 31 days following the due date of any subsequent payment, within which the payment may be made. During the grace period the contract continues in full force, and if the annuitant dies during grace, the insurer may deduct the unpaid portion from the death benefit. The Superintendent will accept only substitute provisions that are more favorable to the contract holder.

Why the other options are wrong

• A) Ten days is the minimum unconditional-refund period for life policies, not the annuity grace period under §3219.
• B) Thirty days is the mail-order refund window for policies sold by direct response, not the annuity grace period.
• D) The 31-day grace applies to every subsequent payment after the first, not merely to the first missed one, and 15 days is not the §3219 figure.

Memory hook

Annuity grace = 31 days, and the contract stays in force the whole time.