The dialog box should ideally be updated to reflect this....       (noting also that newborn is not listed as an exception to click on either).  I see the system logic takes the DOB of the child  and compares it to partial year coverage and ultimately  checks the full year coverage box  to accommodate for this... but still,   it would be better from a user experience perspective to simply inform the user of the NewBorn treatment at the point of the "Did everyone have coverage all year" dialogue box instead.