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If there is a conflict between a policy provision and state statutes the policy

Rationale

The policy must meet minimum statute requirements.

In the event of a conflict between a policy provision and state statutes, the policy must comply with the minimum requirements set forth by the statutes. This ensures that the policy remains valid and enforceable while adhering to state regulations.

A (must be reviewed by the insurance commissioner) YOUR ANSWER

While insurance policies may be subject to review by the insurance commissioner for compliance, this option does not address the specific requirement that the policy must meet minimum statutory standards. The review process is separate from the obligation to adhere to existing laws.

B (must meet minimum statute requirements) CORRECT

This is the correct choice as it emphasizes that any policy provision conflicting with state statutes must be modified to comply with the minimum legal requirements. Policies must align with state laws to ensure their enforcement and protect consumer rights.

C (can be submitted as written) YOUR ANSWER

Choosing to submit the policy as written is inappropriate when there is a conflict with state statutes. Such submission could render the policy invalid or lead to legal disputes, as policies must conform to statutory requirements to be legally binding.

D (supersedes state statutes) YOUR ANSWER

Policies cannot supersede state statutes. State laws are designed to protect the public and provide a framework within which policies must operate. A policy provision that contradicts state law would be unenforceable, demonstrating that statutes take precedence over individual policy terms.

Conclusion

In summary, when a policy provision conflicts with state statutes, it is essential for the policy to adhere to minimum statutory requirements to remain valid. This principle ensures that insurance policies are compliant with the law, protecting both insurers and consumers from potential legal issues arising from non-compliance.

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