State RegulationsNY specificDifficulty 1/5
Which statement about the licensing of life settlement brokers in New York is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §2102(a)(1) and §2137, brokering life settlement contracts for compensation requires the license New York imposes on life settlement brokers. The requirement is imposed by the Superintendent of Financial Services on the brokering activity itself — it does not depend on the person also selling new insurance, and it cannot be waived by paperwork signed by the owner. This protects owners who rely on brokers in these transactions.
Why the other options are wrong
- A) Licenses come from the Superintendent of Financial Services, not from the insurers whose policies are settled — insurers do not authorize brokers.
- C) The requirement attaches to the life settlement brokering activity itself, whether or not the person sells any new insurance.
- D) An owner's disclosure form educates the owner; it cannot replace the statutory license requirement.
Memory hook
The license follows the activity: paid life settlement brokering always requires it.