State RegulationsNY specificDifficulty 1/5
Under the New York Insurance Law, a life settlement provider license may be issued by the Superintendent of Financial Services on which basis?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §7803(b), the Superintendent may issue a life settlement provider license to any person deemed by the Superintendent to be trustworthy and competent to act as a life settlement provider, and who is otherwise qualified as required by the article and has complied with the prescribed prerequisites. DFS thus vets both character and competence before allowing a firm to take ownership of New Yorkers' life insurance policies.
Why the other options are wrong
- B) Demonstrating financial accountability, such as through a bond, is one of the application prerequisites, but no rule requires a bond to match the death benefits the applicant expects to purchase, and it is not the licensing standard itself.
- C) Being a licensed life insurer does not itself confer life settlement provider authority; insurers and settlement providers are distinct roles under the life settlement article.
- D) Experience operating as a provider in another state is not a substitute for obtaining a New York provider license from the Superintendent.
Memory hook
Trustworthy and competent — the Superintendent's twin gates for a provider license.