A policyholder wants to cancel her individual accident and health policy before its expiration date. Under the cancellation provision of N.Y. Ins. Law §3216(d)(2)(H), the policy may grant her the right to:

Why D is correct

Under N.Y. Ins. Law §3216(d)(2)(H), nothing in the cancellation provision prohibits an insurer from granting the insured the right to cancel the policy at any time and to receive a refund of the unearned portion of any premium paid, computed by the use of the short-rate table filed in the state where the insured resided when the policy was issued. The 90-day window limits the insurer's cancellation right, not the insured's.

Why the other options are wrong

• A) The 90-day window restricts the insurer's right to cancel; an insured granted cancellation rights may exercise them at any time.
• B) No insurer consent or anniversary timing is required for the insured's cancellation right when the policy grants it.
• C) The refund covers only the unearned premium under the short-rate table, not every premium the insured has paid.

Memory hook

Insured cancels anytime for a short-rate refund; insurer only in the first 90 days.