State RegulationsNY specificDifficulty 2/5
A New York agent tells a policyholder that a benefit in her individual accident and health policy will be broadened, and writes and signs a note to that effect on the policy jacket. Under N.Y. Ins. Law §3216(d)(1)(A), what is the effect of the agent's note?
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 C is correct
Under N.Y. Ins. Law §3216(d)(1)(A), no change in an individual accident and health policy is valid until it has been approved by an executive officer of the insurer and the approval is endorsed on or attached to the policy. An agent's handwritten promise on the jacket is neither an officer-approved nor an endorsed change, so it does not broaden the policyholder's coverage.
Why the other options are wrong
- A) An agent's appointment by the insurer does not confer authority to change the policy; only an executive officer's approved, endorsed change is valid.
- B) Paying an additional premium cannot validate an agent's unauthorized change; the officer-approval and endorsement requirements still control.
- D) There is no temporary validity for an agent's note; without officer approval and endorsement the change simply is not effective.
Memory hook
Changes need an executive officer's approval, endorsed on the policy.