A New York applicant replaces an existing life policy with a new one, and after the new policy is issued the applicant has second thoughts. Under N.Y. Ins. Law §2123(a)(3)(D), the applicant may return the new policy and reinstate the prior policy within what period?

Why B is correct

Under N.Y. Ins. Law §2123(a)(3)(D), when a life policy is purchased as a replacement, the applicant has 60 days after the new policy is issued to return it and reinstate the prior policy: the new insurer refunds the premium paid, the applicant pays the old policy's premiums with interest, and the old policy is reinstated according to its own reinstatement provision. This statutory rescission right protects applicants from replacements they come to regret.

Why the other options are wrong

• A) Thirty days is not the measure the statute sets; §2123(a)(3)(D) gives a full 60 days after the NEW policy is issued.
• C) Ninety days is the outside cap associated with group conversion privileges, not the replacement rescission period under §2123(a)(3)(D).
• D) Forty-five days belongs to the group-conversion extension when notice of the privilege is late; it has nothing to do with replacement rescission.

Memory hook

Regret a replacement? 60 days from issue to undo it — §2123(a)(3)(D).

Why D is correct

Under N.Y. Ins. Law §2123(a)(3)(D), an applicant who replaces a policy may return the new policy within 60 days after it is issued and reinstate the prior policy as if the replacement had never occurred. The insurer must refund the new policy's premium, while the applicant pays the premiums (with any interest) owed on the reinstated policy under its own reinstatement provision.

Why the other options are wrong

• A) 10 days is the minimum free-look period for an ordinary policy, not the replacement rescission right.
• B) 31 days is the group life conversion application window, a different protection entirely.
• C) 45 days is the extension used when a conversion notice is late, not the replacement rescission window.

Memory hook

Replacement regret: 60 days to undo it and reinstate the old policy.