State RegulationsNY specificDifficulty 3/5
Which of the following is an express exception to the incontestability of a New York life policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §3203(a)(3), the incontestability provision expressly preserves the insurer's rights as to nonpayment of premiums, and — at the company's option — the war-service provision and the total-disability and accidental-death benefit provisions may also remain contestable. Nonpayment of premiums is the classic express exception that survives incontestability.
Why the other options are wrong
- B) Misstatement of age is handled by the adjustment mechanism of §3203(a)(5), not by contesting the policy after it is incontestable.
- C) A beneficiary change after issue has no bearing on contestability of the contract under §3203(a)(3).
- D) The insured's relocation is not among the statutory exceptions to incontestability.
Memory hook
Incontestable — unless premiums went unpaid (or the war clause says otherwise).