State RegulationsNY specificDifficulty 1/5
The insured of a life policy delivered in Albany dies by suicide within two years of the policy's issue date. Under §3203(b)(1)(B), the insurer must:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §3203(b)(1)(B), when the insured dies by suicide within 2 years of the policy's issue date, the death benefit is denied and the premiums are returned. After 2 years, the death benefit must be paid despite the suicide. In practice, the two-year clock runs from the date of issue, not from the date of death.
Why the other options are wrong
- A) Suicide may be excluded only within 2 years of issue under §3203(b)(1)(B); this death occurred inside that window, so the exclusion applies.
- B) Even when the death benefit is denied, §3203(b)(1)(B) requires the premiums to be returned, not retained.
- C) A graduated table of death benefits belongs to the hazardous occupation exclusion under §3203(b)(1)(D), not the suicide provision.
Memory hook
Suicide inside two years: no benefit, premiums refunded.