State RegulationsNY specificDifficulty 2/5
A firm conducts life settlement transactions in New York without having registered as an intermediary. What is the consequence under N.Y. Ins. Law §7804?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §7804(a), an intermediary must register with the Superintendent of Financial Services before transacting life settlement business in New York, and §7804(b)(2) belongs to the same registration scheme the Superintendent administers. A firm that skips registration violates the Insurance Law and exposes itself to enforcement action by the Department of Financial Services.
Why the other options are wrong
- A) Voiding the settlements is not the statutory remedy; the firm's violation exposes it to enforcement by the Superintendent under §7804.
- B) Registration is mandatory, not voluntary, before transacting life settlement business.
- D) The intermediary itself is the party out of compliance; responsibility does not fall only on the provider.
Memory hook
No registration, no business — the Superintendent shuts the door.