State RegulationsNY specificDifficulty 3/5
Which statement correctly distinguishes the parties defined in N.Y. Ins. Law §7802?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §7802, the provider is the party that enters into the life settlement contract with the owner and takes the purchaser's side of the transaction, while the broker represents the owner for compensation. A financing entity supplies capital or credit for the transaction and is distinct from the insurer that issued the policy.
Why the other options are wrong
- A) Representing the owner is the broker's role; the provider buys the policy.
- B) The broker never purchases the policy; purchasing is the provider's role under §7802.
- D) The financing entity provides funding for settlement transactions; the issuing insurer remains the insurer.
Memory hook
Provider purchases, broker represents, financier funds.