Life Insurance Policy Provisions, Options, and Riders
An insured applies to accelerate the death benefit. What must the insurer do before paying under section 3230?
Answer and explanation
Answer: C. Section 3230 requires the insurer to furnish, within five days, illustrations showing the effect on cash value and the death benefit computed both ways, together with notice that alternatives such as a policy loan may be available, and it bars payment for five days from that transmission. Departmental approval and surrender of the policy are not required.Source: N.Y. Ins. Law § 3230 — § 3230
More life insurance policy provisions, options, and riders questions
- How does the interest only settlement option work?
- How does the reduction of premium dividend option work?
- How does waiver of cost of insurance differ in effect from waiver of premium on a fixed whole life policy?
- How is a children's term rider ordinarily priced and applied?
- How is the amount of cover under a family term rider usually expressed?
- How is the interest credited under the accumulation at interest dividend option treated for tax?
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