State RegulationsNY specificDifficulty 2/5
An insurer solicits life insurance by direct mail. Under N.Y. Ins. Law §3209, in this mail solicitation the insurer may:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §3209(a)(1)(b)(1)(A), a mail solicitation may substitute a clause providing a 30-day unconditional full-premium refund right, giving the mail-order consumer a full opportunity to examine the coverage after receiving the policy. The ordinary rule is a buyer's guide at the time of application and a policy summary at delivery, with at least a 10-day refund right under §3209(d)(7).
Why the other options are wrong
- A) Mail sales do not waive disclosure — the statute provides a specific substitute, not an exemption.
- B) Disclosure after the free look would leave the consumer unprotected during the examination period the rule is designed to create.
- D) An illustration projects policy values; it does not replace the statutory disclosure documents or the refund right.
Memory hook
Mail order: no guide needed if a 30-day money-back clause is in.