State RegulationsNY specificDifficulty 2/5
A New York policy owner is injured by a violation of the life settlement penalties provisions of the New York Insurance Law. What civil remedy is available to her?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §7816, any person who has been injured by reason of a violation of the section's penalty provisions may bring an action to recover the damages suffered, and in any such action the court may award reasonable attorney's fees to a prevailing plaintiff. The section also provides that nothing in the article limits common-law, contractual, or other rights of action, so the statutory remedy supplements the owner's other remedies rather than replacing them.
Why the other options are wrong
- A) The statute expressly permits a court to award reasonable attorney's fees to a prevailing plaintiff, so they are not barred.
- C) An injured person may sue directly; she does not need to wait for the Superintendent to act.
- D) Damages are measured by the injury the person suffered, not capped at the broker's commission.
Memory hook
An injured owner can sue for damages — and may recover attorney's fees as well.