State RegulationsNY specificDifficulty 2/5
A minor who is 14 years and 6 months of age or older owns a life insurance policy on her own life in New York and wants to name her college roommate as beneficiary. The class of permissible beneficiaries for such a policy is limited to:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §3207, a minor policyowner's choice of beneficiary is not unlimited: the permissible beneficiaries are the minor, a parent, a spouse, a brother, a sister, a child, or a grandparent. A college roommate falls outside this statutory class, so the designation cannot be accepted as proposed.
Why the other options are wrong
- A) The minor's written consent does not enlarge the class of permissible beneficiaries fixed by N.Y. Ins. Law §3207.
- C) The Superintendent of Financial Services does not maintain a list of approved fiduciary beneficiaries for minor-owned life policies.
- D) Creditors are not within the statutory class of permissible beneficiaries under §3207.
Memory hook
Minor's beneficiary menu: self, parent, spouse, sibling, child, grandparent — no roommates.