State RegulationsNY specificDifficulty 2/5
Absent fraud, the statements an applicant makes in a New York life insurance application are legally treated as:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §3203(a)(4), the entire contract is the policy together with the attached application, and under §3204 the statements in that application are treated as representations rather than warranties, absent fraud. The practical consequence is significant: because a representation is not an absolute guarantee, an innocent misstatement will not automatically void coverage, though a material fraudulent misstatement can still cost the insured the policy's protection.
Why the other options are wrong
- A) Treating the answers as warranties would void the policy for any error — New York expressly rejects that harsh rule for life applications.
- B) Insurers are entitled to rely on application answers when underwriting; the answers are not mere opinion.
- C) The application is a written part of the contract, not testimony reserved for a hearing.
Memory hook
Applications speak in representations, not warranties — honest mistakes do not void.