New York State Life Insurance (NY)

This page contains information on some of the life insurance regulations in New York so that you may be as knowledgable as possible as you decide which life insurance plan is best for you. To find out more about the different types of life insurance available to you, please visit the Types of Life Insurance section of this site.

New York Life Insurance Laws Protecting Consumers (NY)

Article 32 of New York Consolidated Law is the legal force behind the insurance industry in New York State. Claims procedures and policy requirements are outlined here in order to protect the state’s insurance consumers.

All New York life insurance policies are to include, by law, a 10-day “free look”provision, allowing all new policyholders this time to review their new policy and, if they so wish, change their mind and cancel the policy. Insurance companies are obligated to return all premiums paid by the insured.

Another protection is the 31-day grace period for late payments. During th is window, a life insurance policyholder may catch up on a payment without worry of their coverage being terminated by the insurer.

Request a life insurance quote in New York!

Lastly, all life insurance claims are to be settled in New York in a timely manner. If a settlement takes longer than thirty days to complete, it will be considered overdue by the state and begin to accrue interest. All interest must be included in the settlement’s final payment.

New York Life Insurance Regulations Protecting Insurers (NY)

Insurers are also guaranteed some protections in New York. Up to two years from a life insurance policy’s effective date, an insurer may contest any statements made on an application for coverage or insurance policy itself. Any fraudulent findings or misstatements can result in policy termination. All premiums paid will be refunded.

No life insurance claim will be honored within the policy’s first two years if the cause of death is suicide.

Additional Life Insurance Regulations in New York (NY)

Viatical settlements are an agreement arranged between an insured individual and a third party. The third party “buys” the life insurance policy from the insured, being solely responsible for making all payments. In return, the third party becomes the uncontested beneficiary of the policy. Viatical settlements are both legal and regulated (by article 78 of the consolidated law) in the state of New York.

If your state-licensed life insurance company were to become insolvent, compensation for your policy will covered by the Life Insurance Company Guaranty Corporation of New York. Restrictions are, however, put into place. $500,000 is the maximum compensation for the lost policy of an insured individual, no matter the number of policies held..

In order to benefit from the Guaranty Association, your life insurance policy must be underwritten by a licensed New York insurer and your premiums must be current.

Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.