An applicant for a New York long-term care policy is replacing existing long-term care coverage that has been in force without interruption. If the new policy contains a preexisting condition limitation, how must the insurer apply it?

Why B is correct

Under Reg 62 (11 NYCRR Part 52), a preexisting condition limitation may exclude coverage for at most 6 months after the effective date, and the exclusion period must be reduced by the applicant's uninterrupted prior long-term care coverage. An insured who moves from one policy to another without a gap therefore keeps protection against a full new exclusion period.

Why the other options are wrong

• A) Prior coverage reduces the limitation for the replacing insured; it does not force the insurer to abandon the limitation for every applicant.
• C) Replacement does not restart a full exclusion period; uninterrupted prior coverage must be credited against it.
• D) The credit applies to the preexisting condition exclusion, not to the elimination period the insured must satisfy before benefits begin.

Memory hook

Replace without a gap: prior coverage trims the preexisting clock.