New York State Life Insurance Exam Questions Practice Question
In New York, what is the MAXIMUM length of time an insurer can defer payment of a cash surrender value of an annuity?
Correct Answer: A
Rationale: In New York, insurers are allowed to defer the payment of the cash surrender value of an annuity for a maximum of 6 months. This regulation ensures that policyholders can access their funds in a timely manner, promoting financial security.
Option B (12 months) exceeds the allowable deferment period, which could unduly delay access to funds. Options C (18 months) and D (24 months) further extend the deferment beyond the legal limit, potentially causing significant inconvenience to policyholders. Understanding these timeframes is crucial for making informed decisions regarding annuities.
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