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State RegulationsNY specificDifficulty 1/5

Under the New York Insurance Law, advertisements by licensed life settlement providers, intermediaries, and brokers must be:

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Answer & full 3-part explanation (select an option above, or peek)

Why C is correct

Under N.Y. Ins. Law §7809, licensed life settlement providers, intermediaries and brokers may conduct or participate in advertisements within New York, but the advertisements must comply with all advertising and marketing laws and the rules promulgated by the Superintendent, and must be accurate, truthful and not misleading in fact or by implication. An advertisement that is literally accurate but leaves a misleading impression still violates the section, and violations are defined violations under the Insurance Law's unfair trade practices provisions.

Why the other options are wrong

  • A) The statutory standard reaches misleading implications as well as literal falsehoods, so factual accuracy alone is not enough.
  • B) No insurer pre-approval of settlement advertising is required; compliance runs to the Superintendent's advertising rules.
  • D) The section restricts advertising that promotes buying a policy for the purpose of settling it; it does not confine all settlement advertising to existing policy owners.

Memory hook

Accurate, truthful, not misleading — in fact AND by implication.

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