Life Settlement
Why does New York's definition of a life settlement contract turn on compensation less than the expected death benefit?
Answer and explanation
Answer: C. Section 7802(k) frames the transaction by that gap: the owner takes cash now for less than the policy will pay, and the buyer looks to the difference. Terminal illness is not part of the definition, the insurer does not price the sale, and the buyer need not be a producer.Source: N.Y. Ins. Law § 7802 — 7802(k), Less than the death benefit
More life settlement questions
- How does New York define a life settlement contract?
- How does New York define life expectancy for life settlement purposes?
- What consequence does section 7815 attach to engaging in STOLI?
- What does New York's stranger-originated life insurance provision prohibit?
- What is a financing transaction under New York's life settlement article?
- Where does New York set out prohibited practices in life settlements, apart from the STOLI provision?
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