A company wants to enter into life settlement contracts with New York policy owners by purchasing their life insurance policies. When may it do so without a New York life settlement provider license?

Why C is correct

Under N.Y. Ins. Law §7803(a), no person shall engage in the business of life settlements as a life settlement provider in New York without authority from a life settlement provider license issued and in force under the article, and under N.Y. Ins. Law §7803(b) the Superintendent is the licensing authority. A company that enters into settlement contracts with New York owners as the purchaser is acting as a provider; knowingly and willfully doing so without a license can also draw civil penalties under N.Y. Ins. Law §7816 after notice and hearing.

Why the other options are wrong

• A) Where the underlying policies were issued, or who originally owned them, does not remove the provider licensing requirement.
• B) A life settlement broker license authorizes representing owners in negotiating settlements; it does not authorize entering into settlement contracts as the purchaser of policies.
• D) A financing entity under N.Y. Ins. Law §7802 supplies funds to a licensed provider; financing the purchase does not exempt the company that contracts with owners from provider licensing.

Memory hook

Want to buy New York policies? Get the provider license from the Superintendent first.