State RegulationsNY specificDifficulty 2/5
After a life settlement closes, the provider wants to hand the insured's health records to an unaffiliated marketing firm to generate leads for other financial products. Under New York law, this:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §7810, information gathered in a life settlement transaction is confidential and its disclosure is restricted — the insured's health records cannot simply be repurposed for a marketing firm's lead generation. Consent to the settlement is not consent to unrelated downstream marketing, summarizing records does not launder them, and the closing of the deal does not dissolve the privacy duty. Violations can draw enforcement by the Superintendent of Financial Services.
Why the other options are wrong
- A) Confidentiality does not expire when the settlement closes — the information's sensitivity continues after the transaction.
- B) Repackaging confidential health information in summary form still discloses protected information to an unauthorized recipient.
- C) The insured consented to the settlement transaction, not to the marketing use of health records by third parties.
Memory hook
Settlement consent is not marketing consent: health records cannot be repurposed under §7810.