A life settlement transaction is being arranged for a policyowner. Under N.Y. Ins. Law §7819, which of the following is sufficient by itself to bring the life settlement contract within New York's life settlement law?

Why C is correct

Under N.Y. Ins. Law §7819, New York's life settlement article applies to any life settlement contract that is made, proposed to be made, or solicited with a resident of New York, or with any owner physically located in this state. A proposal made to a New York resident owner therefore brings the transaction within New York's life settlement law, and the broker must comply with all duties the law imposes on New York life settlement transactions.

Why the other options are wrong

• A) The issuing insurer's state of organization is not a trigger under §7819; applicability turns on the owner's residence or physical presence in New York, not on where the insurer is organized.
• B) The insured's life expectancy affects the frequency of verification contacts and other duties, but it has no bearing on whether New York law applies to the settlement contract.
• D) The location where the settlement paperwork is prepared is irrelevant; §7819 keys applicability to the owner's residency or physical presence in New York.

Memory hook

Article 78 follows the resident: made, proposed, or solicited with a New York resident, or with an owner physically in the state.