State RegulationsNY specificDifficulty 1/5
A New York owner signs a life settlement contract and subsequently receives the settlement proceeds. Under N.Y. Ins. Law §7813(g), the owner's right to rescind runs...
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §7813(g), the owner may rescind a life settlement contract from the time of its execution until 15 days after the owner receives the settlement proceeds. After the owner exercises rescission, the provider must furnish an accounting statement within 5 days, and the owner must repay the proceeds within 15 days after the statement. Keying the endpoint to receipt of the proceeds protects owners who sign quickly but must wait for funding to arrive.
Why the other options are wrong
- A) The endpoint is keyed to receipt of the proceeds, not to the date the settlement contract was signed.
- B) Ten days is the period within which the owner must notify the insurer after signing the settlement, not the rescission endpoint.
- D) Thirty days is the mail-order policy refund window under New York law, not the settlement rescission period, and the right begins at execution, not at receipt.
Memory hook
Rescind until 15 days after the money lands; then repay within 15 days of the accounting.