State RegulationsNY specificDifficulty 1/5
A New York resident wants to negotiate life settlement contracts for policy owners and charge a fee. What must she do before holding herself out to the public as a life settlement broker?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §2102(a)(1), no person may act as an insurance broker in New York without a license, and §2137 sets out the additional licensing requirements applicable to life settlement brokers. Acting as a life settlement broker for compensation without the required license violates the Insurance Law and is enforceable by the Superintendent of Financial Services, so licensure must come before any brokering activity. A notice filing is not a substitute for the license itself.
Why the other options are wrong
- A) Appointments bind agents to insurers for soliciting insurance; a settlement broker represents owners, not insurers, so appointments are not the gate.
- B) A provider license authorizes the purchaser of policies, not a person negotiating sales on behalf of owners.
- D) A notice of intent does not substitute for a license — the New York Insurance Law requires actual licensure before brokering.
Memory hook
No license, no brokering: §2102(a)(1) plus §2137 gate the life settlement broker.