A New York life policy names and excludes the insured's occupation as a test pilot, with no graduated benefit table attached. The insured dies in a work-related crash within two years of issue. Under N.Y. Ins. Law §3203(b)(1)(D), the insurer must:

Why D is correct

Under N.Y. Ins. Law §3203(b)(1)(D), when death occurs within two years of issue from an occupation that is both hazardous and named as excluded in the policy, the insurer returns the premiums paid. The insurer may instead attach a graduated table of death benefits scaling the payout to the hazard, but with no table attached the remedy is return of premium, not payment of the death benefit.

Why the other options are wrong

• A) A hazardous-occupation exclusion that is clearly named in the policy is expressly permitted by §3203(b)(1)(D).
• B) The insurer must return the premiums; retaining them is a total forfeiture the statute does not allow.
• C) Paying the cash value is not the statutory remedy; §3203(b)(1)(D) calls for return of the premiums paid.

Memory hook

Hazardous job, named and excluded: the premium comes back.

Why B is correct

Under N.Y. Ins. Law §3203(b)(1)(D), when death occurs within 2 years of issue from a hazardous occupation that is named and excluded in the policy, the insurer must return the premiums paid. The insurer may instead attach a graduated table of death benefits, paying reduced amounts for death from the excluded occupation rather than excluding it flatly. The exclusion is limited to the first 2 years after issue.

Why the other options are wrong

• A) Hazardous occupation exclusions are permitted under §3203(b)(1)(D) for death within 2 years of issue from a named, excluded occupation.
• C) The measure of the insurer's obligation is return of premiums or a graduated table under §3203(b)(1)(D), not the cash value.
• D) Forfeiting premiums is not permitted; §3203(b)(1)(D) requires the premiums to be returned when the exclusion applies.

Memory hook

Hazardous occupation death within two years: premiums back - or a graduated table.