State RegulationsNY specificDifficulty 1/5
After a New York life policy lapses for nonpayment of premium, the policyowner may reinstate it upon evidence of insurability and payment of overdue premiums with interest, if application for reinstatement is made within:
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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)(10), a lapsed life policy may be reinstated within 3 years of the date of default, upon evidence of insurability as the insurer may reasonably require and payment of all overdue premiums with interest. Reinstatement restores the original policy rather than issuing a new contract.
Why the other options are wrong
- B) 2 years is the incontestability period, not the reinstatement window under §3203(a)(10).
- C) 1 year understates the 3-year reinstatement right that §3203(a)(10) provides.
- D) 5 years overstates the statutory reinstatement window.
Memory hook
Reinstate within 3 years of default — prove insurability, pay up.