State RegulationsNY specificDifficulty 2/5
A New York life settlement intermediary's registration lapses, but she keeps negotiating settlements for owners. Which statement 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 §7804(a), acting as an intermediary in New York life settlement transactions without being registered with the Superintendent of Financial Services violates the Insurance Law. The registration requirement is an ongoing condition of acting in that role — not a one-time entry ticket — and it is not excused by the absence of complaints or by working without a fee. Continued unregistered activity exposes the intermediary to enforcement by the Department of Financial Services.
Why the other options are wrong
- B) An owner's silence does not legitimize the activity — the registration requirement is enforced by the Superintendent, not triggered by private complaint.
- C) §7804 requires the intermediary to be registered for the activity generally, not merely for an initial transaction.
- D) Waiving compensation does not matter: the registration duty attaches to acting as an intermediary, with or without a fee.
Memory hook
Registration is ongoing: once it lapses, the intermediary must stop until it is restored.