State RegulationsNY specificDifficulty 1/5
Under New York law, personal, financial, and health information gathered about an owner and insured in a life settlement transaction is:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §7810, personal, financial, and health information collected in connection with a life settlement transaction is confidential and may not be disclosed except as the statute permits. Settlement transactions expose owners' and insureds' sensitive details — including health and life-expectancy information — so New York restricts who may receive it rather than treating it as public record or as property the provider acquires along with the policy.
Why the other options are wrong
- A) Closing the settlement does not convert sensitive personal information into public record — confidentiality survives the transaction.
- C) Transfer of the policy does not carry a free right to spread the owner's and insured's information to anyone.
- D) The provider purchases the policy, not ownership of the participants' confidential personal information.
Memory hook
§7810 locks the file: settlement information stays confidential by default.