State RegulationsNY specificDifficulty 2/5
Under N.Y. Ins. Law §7813(k), when the insured's life expectancy under a settled policy exceeds 1 year, the provider may contact the insured for verification purposes no more often than:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §7813(k), if the insured's life expectancy exceeds 1 year, the life settlement provider may make verification contacts no more often than once every 3 months (quarterly). If life expectancy is 1 year or less, more frequent contact is permitted, at most monthly. These limits protect settled insureds from harassment by the provider.
Why the other options are wrong
- B) Monthly contact is allowed only when life expectancy is 1 year or less; it is too frequent when the insured is expected to live longer.
- C) Waiting 6 months between contacts is more restrictive than the law requires; the provider is entitled to quarterly contact when life expectancy exceeds 1 year.
- D) Annual contact understates the provider's rights; quarterly verification is the statutory maximum when life expectancy exceeds 1 year.
Memory hook
Longer life expectancy, less contact: over 1 year means quarterly; 1 year or less means monthly.