A New York life insurance policy names and excludes certain hazardous occupations. The insured dies within 2 years of the date of issue while working in an excluded occupation. Under N.Y. Ins. Law §3203(b), the insurer must:

Why C 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's obligation is to return the premiums paid, although the insurer may attach a graduated table of death benefits payable for death from such occupations instead of a bare refund. This is one of the limited exclusions New York permits in life policies, alongside the suicide exclusion within 2 years of issue under §3203(b)(1)(B) and the special war exclusion under §3203(c).

Why the other options are wrong

• A) The hazardous-occupation exclusion is effective for deaths occurring within 2 years of issue; it does not lapse when the policy is issued.
• B) The insurer may not simply keep the premiums; the statute requires a return of premium when the exclusion applies.
• D) No Superintendent approval process is involved; the statutory exclusion operates on its own terms when its conditions are met.

Memory hook

Hazardous job, death within 2 years of issue: the premiums come back.