P&CNew Yorkeasy
Under NY Insurance Law § 1101(a), an 'insurance contract' is defined as an agreement by which one party is obligated to confer a benefit of pecuniary value upon another party dependent upon the happening of what?
A fortuitous event in which the insured or beneficiary has a material interest that will be adversely affected
BAny voluntary economic decision by the insured
CA scheduled investment maturity date
DA unilateral declaration by the insurer of an underwriting loss
Why this is the answer
NY Insurance Law § 1101(a) is the cornerstone definition: an insurance contract requires (1) an obligation to confer a benefit of pecuniary value, (2) contingent on a fortuitous event, (3) in which the insured or beneficiary has a material interest that will be adversely affected. The 'fortuitous event' and 'material interest' elements are what distinguish insurance from gambling, warranties, and pure investment products.
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