A New York parent applies for life insurance on a child who is under 14 years and 6 months of age. Under N.Y. Ins. Law §§3205 and 3207, which statement is correct?

Why A is correct

Under N.Y. Ins. Law §3205(c), a person with an insurable interest — such as a parent — may insure the life of a minor under 14 years and 6 months, but the coverage is subject to the amount limits of §3207: the limit is the greatest of $50,000, 50% of the applicant's existing life insurance, or 25% where the minor is under 4 years and 6 months. Any excess is void until the minor reaches 14 years and 6 months, with an exception for a person with an insurable interest on whom the minor is not dependent.

Why the other options are wrong

• B) Insuring minors is permitted — the statute limits the amount, it does not ban the coverage.
• C) Only a minor who is 14 years and 6 months or older may exercise all policy rights personally; younger minors cannot.
• D) No Superintendent pre-review is required; the statutory limits themselves control the amount.

Memory hook

Under 14 and a half on a child's life? §3207 caps the face amount.