State RegulationsNY specificDifficulty 1/5
Under N.Y. Ins. Law §7816, monetary penalties for knowing violations of New York's life settlement laws are imposed...
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under N.Y. Ins. Law §7816, the Superintendent of Financial Services imposes civil monetary penalties only after notice and a hearing, and the exposure varies with the violation — for example, a life settlement broker who knowingly fails to provide or delays required disclosures to the owner's material detriment can be required to pay the people of the state an amount up to the broker's compensation, while other knowing violations carry their own statutory maximums. The notice-and-hearing requirement is the due-process backbone of the penalty structure.
Why the other options are wrong
- A) An owner's complaint may prompt an investigation, but penalties are not automatic; they require notice and a hearing before the Superintendent.
- B) The issuing insurer has no power to levy statutory penalties against settlement participants; enforcement belongs to the Superintendent.
- D) The Superintendent may not impose these penalties without notice and a hearing — due process is built into §7816.
Memory hook
§7816 penalties: Superintendent + notice + hearing. No shortcuts.