State RegulationsNY specificDifficulty 1/5
Under the New York Insurance Law, the life settlement article applies to which life settlement contracts?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under N.Y. Ins. Law §7819, the provisions of the life settlement article apply to any life settlement contract made, proposed to be made, or solicited with a resident of New York, or with any owner physically located in New York. The test looks to the owner's residence or physical presence — not to where the provider is licensed or where the policy was issued — so out-of-state providers soliciting New York owners are drawn into New York's regulatory net.
Why the other options are wrong
- A) The provider's licensing status does not determine applicability; dealing with a New York owner pulls the transaction into the article.
- B) The identity and domicile of the issuing insurer are not the applicability test.
- C) Residency is one trigger, but an owner physically present in New York is covered even if not a resident.
Memory hook
New York resident — or any owner physically in New York — the settlement article applies.