A NY ordinary life policy lapses after 18 months in force. The owner reinstates it 6 months later under NY Ins. Law § 3203(a)(11), making fresh statements on the reinstatement application. The insured dies by suicide 14 months after reinstatement. Which of the following best describes the insurer's position under NY § 3203?

Question

EstatePass Inc. · Accepted Answer

The insurer may deny the claim because the insured died by suicide within 2 years of the original policy's effective date — the reinstatement does not toll the suicide period restart, and on these facts the cumulative in-force time since original issue exceeds 2 years, but the policy's contractual suicide clock is what controls; under the standard NY form the suicide-clause period generally restarts from reinstatement, so suicide within that new 2-year window is excluded — NY Ins. Law § 3203 caps the suicide period at 2 years for ordinary life and the contestability period at 2 years (§ 3203(a)(3)). On reinstatement under § 3203(a)(11), the standard NY policy form treats the reinstatement as a contractual 'restart' of those clocks at least with respect to representations made in the reinstatement application. On these facts, suicide occurred 14 months after reinstatement — inside the new 2-year window — so the insurer may limit liability to a refund of premiums consistent with the suicide clause. Choice B misstates the law; the 2 years runs from issue or reinstatement, not from issue alone. Choice C confuses industrial (1-year) with ordinary (2-year). Choice D invents a non-existent NY rule.

Why this is the answer