State RegulationsNY specificDifficulty 1/5
Under Reg 145, what renewability protection applies to small employer medical plans issued in New York?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Reg 145 (11 NYCRR Part 360 (Reg 145)), small employer medical coverage is guaranteed renewable: the employer has the right to renew, and the insurer may not refuse renewal because of the group's health status or claims experience. Renewal terms and rates may change within the limits the Superintendent of Financial Services allows, but the group cannot simply be dropped.
Why the other options are wrong
- A) The renewal decision does not rest in the insurer's discretion; the small employer holds the right to renew the coverage.
- B) No new evidence of insurability may be demanded at renewal; requiring it would defeat guaranteed renewability.
- D) The protection is not limited to the first year; it continues for as long as the employer maintains the coverage.
Memory hook
Small-group coverage renews at the employer's choice, not the insurer's.