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State RegulationsNY specificDifficulty 2/5

An examiner from the Department of Financial Services is investigating a New York life settlement provider's transactions and requests information identifying the owner and the insured. Under the life settlement privacy rules, the provider may:

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

Why C is correct

Under N.Y. Ins. Law §7810, the general prohibition on disclosing the identity of an insured or owner, information that could be used to identify them, or the insured's financial or medical information does not extend to disclosures provided in response to an investigation or examination by the Superintendent, another governmental officer or agency, or a self-regulating entity established pursuant to federal securities law. Supervisory access is what allows DFS to police the New York life settlement market; the exception belongs to regulators, not to private parties.

Why the other options are wrong

  • A) No court order is needed — a response to an investigation or examination by the Superintendent is expressly permitted.
  • B) The regulator exception operates without any renewal of the owner's and the insured's written consent.
  • D) Identities and identifying information are precisely what the regulator may receive, along with financial and medical information.

Memory hook

DFS examiners get in free — regulator access needs no consent.

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