State RegulationsNY specificDifficulty 2/5
Which statement about life settlement providers under New York law is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §7803(b), a person may not enter into life settlement contracts with owners unless the person holds a life settlement provider license issued by the Superintendent of Financial Services. A pending application is not a license, an insurer's license to issue insurance does not automatically confer provider status, and New York does not condition the provider license on being a New York-domiciled entity. The license must be in hand before contracting.
Why the other options are wrong
- B) A pending application does not authorize activity — the license must actually be issued before entering into settlement contracts with owners.
- C) An insurer's license covers issuing insurance; it does not by itself authorize the insurer to purchase policies through settlements.
- D) The statute does not require New York domicile; the operative gate is licensure by the Superintendent, not the applicant's location.
Memory hook
No provider license, no purchases: §7803(b) blocks contracting with owners until it is issued.