By when must the separate written disclosure required in a New York life settlement transaction be provided and signed?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §7811, the provider or broker must give the owner a separate written document, conspicuously displaying the required disclosures and signed by the owner, no later than the date the life settlement contract is signed by all parties; the broker's separate disclosure is likewise signed by the owner and the broker by that date, and a parallel disclosure signed by the insured is due by the same date. The required content — alternatives such as accelerated benefits, possible tax consequences, exposure to creditor claims, and effects on public assistance eligibility — must therefore be in the owner's hands before the deal is done.
Why the other options are wrong
- A) 'A reasonable time after' is not the rule; the document must be provided and signed by the date the contract is signed.
- C) The disclosure is mandatory in every settlement; it is not triggered by the owner's request.
- D) Delivering the disclosure with the proceeds check is too late under the statute's timing rule.
Memory hook
The disclosure document must be signed no later than the day the settlement contract is signed.