A New York applicant who replaced an existing life policy with a new one regrets the change after the new policy is issued. Under N.Y. Ins. Law §2123(a)(3)(D), the applicant may return the new policy and reinstate the prior policy within:

Why C is correct

Under N.Y. Ins. Law §2123(a)(3)(D), within 60 days after the new policy is issued, the applicant in a replacement may return it and reinstate the prior policy: the insurer refunds the premium paid on the returned policy, and the applicant pays the premiums (with any interest) owed on the old policy, which is then reinstated according to its reinstatement provision. This right protects consumers who were persuaded to replace coverage to their detriment.

Why the other options are wrong

• A) 10 days is the ordinary free-look minimum — replacement law gives the stronger 60-day right.
• B) 31 days is the group life conversion window, not the replacement rescission period.
• D) 2 years is the incontestability period; it does not measure the right to undo a replacement.

Memory hook

Replaced and regret it? 60 days from issue to undo the deal.