In the separate written disclosure that a New York life settlement broker must give the owner, which of the following is required?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §7811, the broker's separate written disclosure to the owner must state that the life settlement broker represents the owner exclusively — not the insurer, the life settlement provider, or any other person — and owes the owner a fiduciary duty, including the duty to act according to the owner's instructions and in the owner's best interest. It must also include a full and accurate description of all offers, counteroffers, acceptances and rejections, the gross amount to be paid, the net proceeds to the owner, the broker's own compensation, and a complete reconciliation of the gross offer to the net amount.
Why the other options are wrong
- A) The disclosure says the opposite: the broker represents the owner exclusively and owes a fiduciary duty to the owner.
- B) The gross amount, the broker's compensation, and a reconciliation to the net proceeds must all be disclosed; nothing is treated as confidential.
- D) Broker compensation is not fixed by the Department; whatever it is, it must be disclosed to the owner.
Memory hook
The broker serves one master — the owner — and must show gross, net, and the broker's cut.