State RegulationsNY specificDifficulty 1/5
The written disclosure required in a New York life settlement transaction must tell the owner that the right to rescind the settlement runs until:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §7811, the separate written disclosure given to the owner must state that the owner has the right to rescind the life settlement contract from the time of its execution until 15 days after the owner receives the life settlement proceeds. The window is keyed to receipt of the money rather than to the signing date, so the owner can review the funds actually paid before the settlement becomes irrevocable.
Why the other options are wrong
- B) 10 days understates the statutory period; the rescission right runs for 15 days after the proceeds are received.
- C) 30 days from signing misstates both the length of the period and its trigger, which is receipt of the proceeds rather than execution of the contract.
- D) 60 days from signing is not the life settlement rescission rule under the disclosure provisions.
Memory hook
Rescind until fifteen days after the settlement money lands.