State RegulationsNY specificDifficulty 2/5
A firm applies to the Department of Financial Services for a New York life settlement provider license. Which item must the applicant furnish among the licensing prerequisites?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §7803(b), the Superintendent may issue a provider license only to an applicant who has complied with the prerequisites prescribed in the article. Those prerequisites include a detailed plan of operation, an anti-fraud plan, demonstrated financial accountability such as a bond or other method acceptable to the Superintendent, disclosure of the identity of stockholders, partners, officers, directors and persons with a controlling interest, and, for legal entities, a certificate of good standing from the state of domicile.
Why the other options are wrong
- A) No such list is required or possible; the applicant cannot know in advance which policies owners will offer to settle.
- C) Owner consent is a requirement at the transaction stage, when a specific settlement is negotiated, not a prerequisite to licensing.
- D) The certificate contemplated by the licensing prerequisites is a certificate of good standing from the applicant's own state of domicile, not a certificate from insurers.
Memory hook
Plan of operation plus anti-fraud plan — the core paperwork behind the provider license.