PLNew Yorkmedium

Under N.Y. Ins. Law § 3425, during the first 60 days a new New York homeowners policy is in force, a carrier may cancel:

Q: Under N.Y. Ins. Law § 3425, during the first 60 days a new New York homeowners policy is in force, a carrier may cancel:

For any reason not prohibited by law, with proper notice — N.Y. Ins. Law § 3425 creates a two-tier cancellation regime for covered personal lines policies. During the first 60 days a new policy is in force, the carrier may cancel for any underwriting reason not otherwise prohibited (e.g., misrepresentation discovered during underwriting, claims history, property condition). After the 60-day discovery window, the carrier may cancel only on enumerated grounds such as non-payment of premium, material misrepresentation, physical change increasing the hazard, or conviction of a crime increasing the hazard.

AOnly on the four enumerated mid-term grounds available after 60 days

BOnly on 10 days' notice for non-payment, with no other grounds available

For any reason not prohibited by law, with proper notice

DOnly with prior written approval from the Superintendent of DFS

Why this is the answer

N.Y. Ins. Law § 3425 creates a two-tier cancellation regime for covered personal lines policies. During the first 60 days a new policy is in force, the carrier may cancel for any underwriting reason not otherwise prohibited (e.g., misrepresentation discovered during underwriting, claims history, property condition). After the 60-day discovery window, the carrier may cancel only on enumerated grounds such as non-payment of premium, material misrepresentation, physical change increasing the hazard, or conviction of a crime increasing the hazard.

Studying for the New York Personal Lines exam?

This question comes from our PL bank. Take a free practice test — no signup.

Free PL practice test Personal Lines exam guide