State RegulationsNY specificDifficulty 1/5
Under New York law, the disclosures owed in connection with a life settlement contract are:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §7811, the owner must receive written disclosure concerning the life settlement transaction and its consequences — the statute's protections cannot depend on a broker's oral summary, are not satisfied by notifying the insurer, and are not switched off because the owner has counsel. Written disclosure creates a record the owner can review and preserves the statutory protection against uninformed decisions about parting with a policy.
Why the other options are wrong
- A) Oral summaries leave no record and are not the statutory medium — §7811 contemplates written disclosure to the owner.
- C) The insurer is not the disclosure's recipient; the point is informing the owner who is giving up the policy.
- D) Representation by an attorney does not eliminate the statutory disclosure duty owed to the owner.
Memory hook
If it is not written, it was not disclosed — §7811 demands ink for the owner.