State RegulationsNY specificDifficulty 1/5
Which statement correctly describes the unpaid premium provision found in New York individual accident and health policies?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §3216(d)(2)(G), if a premium is due and unpaid at the time a claim is paid, the insurer may deduct the amount of the premium from the benefits. The provision ensures that a past-due premium does not defeat an otherwise valid claim: the insurer simply nets what it is owed out of the benefit payment.
Why the other options are wrong
- A) Cancellation is not this provision's remedy; grace and nonrenewal rules govern that area.
- C) Agents have no duty to advance premiums.
- D) The grace period is fixed by premium mode under a different provision and is never doubled.
Memory hook
A past-due premium rides out on the claim check.