State RegulationsNY specificDifficulty 1/5
In a New York life settlement transaction, whom does the life settlement broker represent?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §7802, a life settlement broker is the person who, for compensation, represents the owner of the life insurance policy in a life settlement transaction. The broker's client is the selling owner — not the provider who purchases the policy and not the issuing insurer — and the broker's duties run to that owner under definitions the Superintendent enforces.
Why the other options are wrong
- A) The provider stands on the buying side of the transaction; representing the owner is what defines the broker under §7802.
- C) The issuing insurer is not represented by a life settlement broker; it simply remains obligated on the policy.
- D) The Department of Financial Services regulates life settlements; it is not a party the broker represents.
Memory hook
The broker works for the seller (the owner), not the buyer.