New York Life InsuranceNew York life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.
This page:
Briefly describes New York life insurance regulations.
Explains the protection of New York's Life Insurance Guaranty.
Links to more information about life insurance in New York
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New York life insurance rights and regulationsThe insurance industry in New York is regulated under Article 32 of New York Consolidated Law. These laws outline claims procedures and policy requirements for the benefit and protection of you, the consumer.
One such protection is the 10-day "free look" provision included in all New York life insurance policies. During this time, a new policyholder can choose to decline the coverage and still receive a full refund of paid premiums.
New York also requires that life insurance companies allow a 31-day grace period on late premium payments. Dring this window, the insurer will not cancel the policy, and coverage will continue uninterrupted so long as the account is brought current.
Finally, New York life insurance companies are obligated to settle claims in a timely manner. 30 days after an insurer recieves proof of death, an unpaid claim is considered overdue, and the proceeds begin accruing interest. (This will be included in the final payment).
However, New York law extends some protections to insurers as well. Insurance companies can contest statements made on a policy or application for up to two years from the effective date of the policy. The discovery of any misstatement is grounds for policy cancellation (with a refund of paid premiums).
Insurance companies are also exempt from paying claims made within the first two years where the cause of death is suicide. Sidebar
If you are ready to apply for a New York term life insurance policy, or if you just want a quick online quote, visit Insured Street now.
If you are not sure about what type of life coverage you want, you can also try InsureME. They will put you in touch with agents who can answer any questions that you might have.
The Life Insurance Guaranty of New YorkMost New York life insurance policyholders are covered by the Life Insurance Company Guaranty Corporation of New York. This organization helps protect policyholders in cases of insurance company insolvency.
However, the protection does have restrictions. Compensation for lost death benefits in New York is limited to $500,000. This limit is per insured, and holds even in the event of multiple policies with a higher total coverage.
Further, an insurer must be licensed in New York to be backed by the guaranty. You can check the status of your insurer by contacting the New York Insurance Department at 1-800-342-3736. Sidebar
Apply for a quote with confidence at Insured Street
(for New York term life insurance), or InsureME.
Your insurer will be licensed in New York.
Viatical settlementsViatical settlements, which are purchasing agreements between a third party and an insured, are premitted, but regulated, in New York.
Under such an arrangement, a third party purchases a life insurance policy from the insured, pays the premiums, and becomes the policy's beneficiary. Article 78 of the consolidated law outlines the applicable rules. (It's always wise to seek the aid of a licensed agent when arranging a viatical settlement.)
More NY life insurance helpIf you want more help getting the best value on your NY life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).
To find out more about NY life insurance laws and regulations, visit the state's official website at the New York Insurance Department.
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