State RegulationsNY specificDifficulty 2/5
In a New York life settlement, the insured's life expectancy exceeds one year. Under N.Y. Ins. Law §7813(k), how often may the life settlement provider or broker contact the insured to determine the insured's health status or verify the insured's address?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §7813(k), verification contacts with the insured are capped by life expectancy: when the insured's life expectancy exceeds one year, contacts may occur no more often than once every 3 months; when life expectancy is one year or less, the cap rises to monthly. These limits protect insureds from harassment by providers monitoring their health, and an owner's written consent cannot enlarge the statutory cap.
Why the other options are wrong
- A) Monthly contact is allowed only when the insured's life expectancy is one year or less — not when it exceeds one year.
- C) The statute sets a quarterly cap for longer life expectancies; it does not impose a 6-month interval.
- D) Written consent from the owner cannot override the statutory contact limits, which exist for the insured's protection.
Memory hook
Life expectancy over a year: quarterly check-ins; a year or less: monthly.