State RegulationsNY specificDifficulty 3/5
Which statement best describes the scope of New York's regulation of life settlement advertising?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §7809, advertising in connection with life settlement contracts falls under the Superintendent of Financial Services's regulatory authority, with standards that prohibit false, misleading, or deceptive statements. The provision neither bans settlement advertising outright nor leaves it to provider self-regulation — it polices the content to protect the owners and insureds who make up its audience. This complements the licensing and disclosure rules governing the same market.
Why the other options are wrong
- A) The law regulates settlement advertising; it does not prohibit the business from being advertised at all.
- B) §7809 targets life settlement advertising, not insurers' ordinary advertising of newly issued policies.
- C) Self-regulation by providers would leave consumers unprotected; the Superintendent sets and enforces the standard.
Memory hook
Not banned, but bossed: §7809 puts the Superintendent over settlement ad content.