State RegulationsNY specificDifficulty 2/5
A New York applicant's life insurance application is declined because of the results of an HIV-related test. Under the New York Insurance Law, the insurer must:
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 D is correct
Under N.Y. Ins. Law §2611, when an HIV test result leads to an adverse underwriting decision — a declination, rating, or exclusion — the insurer must give the applicant written notice stating the basis for the decision and the applicant's appeal and review options. The statute protects applicants from unexplained, informal, or agent-relayed adverse decisions.
Why the other options are wrong
- A) Routing the decision through the agent for oral relay violates §2611's requirement of written notice directly to the applicant.
- B) The Department of Financial Services does not hold files for review before an underwriting decision; §2611 requires notice after the decision.
- C) Automatic repricing is not required; the insurer must explain its adverse decision and the available appeal and review options in writing.
Memory hook
Adverse HIV decision? The insurer must explain it in writing — and how to fight it.