A life settlement broker wants to give a prospective purchaser of a settled policy the insured's name and medical information. Under the New York Insurance Law's life settlement privacy rules, when is that disclosure permitted?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §7810, a life settlement provider, broker or intermediary — or any other person with actual knowledge of an insured's or owner's identity — may not disclose the identity of the insured or owner, information that could reasonably be used to identify them, or the insured's financial or medical information, unless the disclosure is necessary to effect the life settlement contract between the owner and a provider and both the owner and the insured have provided prior written consent. Similar written-consent requirements govern later sales or transfers of the settled policy.
Why the other options are wrong
- A) Consent must be in writing and must come from the insured as well as the owner; verbal consent from the owner alone is insufficient.
- C) Signing the settlement contract does not strip away the privacy protections; later sales and transfers still require the owner's and the insured's written consent.
- D) The purchaser's status as an accredited investor does not remove the prior written consent requirement for disclosing identifying or medical information.
Memory hook
Two signatures before disclosure — the owner AND the insured, in writing.