A New York life settlement owner suffers financial harm because a broker knowingly withheld disclosures required by N.Y. Ins. Law §7811. What civil remedy is available under N.Y. Ins. Law §7816?

Why D is correct

Under N.Y. Ins. Law §7816, any person who has been injured by reason of a violation of the penalty provisions may bring a civil action to recover the damages suffered by reason of the violation, and the court may award reasonable attorney's fees to a prevailing plaintiff. The same section preserves common-law and contractual rights, so the statutory remedy is additive — the Superintendent's administrative penalties and the owner's private damages action run on separate tracks.

Why the other options are wrong

• A) A complaint to the Department of Financial Services is not the exclusive remedy; the statute creates a private right of action for injured persons.
• B) No prior written consent from the Superintendent is required before an injured person sues under §7816.
• C) The measure of recovery is the damages the injured person suffered, not merely a disgorgement of the broker's compensation (which is the Superintendent's separate administrative lever).

Memory hook

Hurt by a settlement violation? Sue for damages — attorney's fees can be added on top.