State RegulationsNY specificDifficulty 1/5
Under Reg 62, what renewability standard must a New York long-term care insurance policy meet?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Reg 62 (11 NYCRR Part 52), Part 52.25(b)(1), long-term care policies must be guaranteed renewable: the insured has the right to continue the coverage in force by the timely payment of premiums, and the insurer cannot drop the insured because of age, health, or claims. Guaranteed renewable is not the same as noncancelable, which would also freeze premium rates.
Why the other options are wrong
- B) The insurer has no free-standing right to refuse renewal of a guaranteed renewable policy.
- C) Guaranteed renewable does not mean noncancelable; the difference lies in whether premium rates can change.
- D) Long-term care coverage cannot be terminated at the insurer's will once issued as guaranteed renewable.
Memory hook
New York LTC is guaranteed renewable: pay premiums, keep coverage.