State RegulationsNY specificDifficulty 3/5
In a New York life settlement, which party serves as the 'intermediary' that New York requires to register?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §7804(a) and §7804(b)(2), the intermediary in a life settlement is the go-between — typically the life settlement broker — who negotiates or facilitates the transaction between the policy owner and the life settlement provider, and that person must register with the Superintendent of Financial Services. The insurer, the financing entity, and Department examiners all play other roles and are not the registrable intermediary contemplated by the statute.
Why the other options are wrong
- A) The insurer's claims department administers the policy; it neither negotiates the settlement nor registers as an intermediary.
- B) The financing entity supplies funding for the purchase — a distinct role from the intermediary who negotiates the deal.
- D) An examiner is a regulator-side function, not a market participant required to register under §7804.
Memory hook
Intermediary = in-between: the broker standing between owner and provider must register.