Relevant State Departments of Insurance Contact Info

New York State Department of Financial Services –
1 State Street
New York, NY 10004-1511
800-342-3736

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Summary of the State:

    • Support
    • Oppose
    • Neutral
    • TBA
    • Summary Verbiage

TYPE OF LICENS: LIFE SETTLEMENT

WHAT DOES THE STATE DEFINE AS CONTESTABLE?: 2 YEARS

WHAT IS THE REQUIRED HOLDING PERIOD?: 2 YEARS. See: NY CLS Ins § 7813(j).

WHEN DOES LICENSE NEED TO BE RENEWED?: NY CLS Ins § 7803(b)(2). Every license issued pursuant to this section shall expire on June thirtieth of odd-numbered years.

IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: (NY CLS Ins § 7811(c)(4).

IS THERE A MINIMUM PAYMENT REQUIREMENT?: NO

WHEN DOES THE MONEY NEED TO BE IN ESCROW?: NY CLS Ins § 7813(h). Within three business days after receipt from the owner of documents to effect the transfer of the policy that is the subject of a life settlement contract, the life settlement provider shall deposit the proceeds of the life settlement contract into an escrow or trust account in a state or federally chartered financial institution. The escrow agent or trustee shall be required to transfer the proceeds due to the owner within three business days of acknowledgement of the transfer from the insurer.

IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: NO

IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: YES. NY CLS Ins § 7813(c). The life settlement provider shall give written notice to the insurer that issued the policy within ten days after the life settlement contract is executed by all parties.

WHAT IS THE RESCISSION PERIOD?: NY CLS Ins § 7813(g). (1) Every life settlement contract shall provide that the owner has an unconditional right to rescind the life settlement contract from the time of execution of the contract until fifteen days after the receipt of the life settlement proceeds by the owner by giving notice of rescission to the life settlement provider by midnight of the fifteenth day.

(2) Within five days after receipt of the notice of rescission, the life settlement provider shall provide a written statement to the owner itemizing the amount of all life settlement proceeds and any premiums, loans and loan interest paid or to be paid as of a date certain as may be requested by the owner.
(3) Within fifteen days after the receipt of the written, itemized statement by the owner, the owner must repay all such life settlement proceeds and any premiums, loans and loan interest paid by the life settlement provider.
(4) If the insured dies during the rescission period, the life settlement contract shall be deemed to have been rescinded, subject to repayment of all life settlement proceeds and any premiums, loans and loan interest paid by the life settlement provider.
(5) Within five days after receipt of notice of the insured’s death during the rescission period, the life settlement provider shall provide a written statement to the owner or, if the owner is deceased, to the legal representative of the owner’s estate, itemizing the amount of all life settlement proceeds and any premiums, loans and loan interest paid or to be paid as of a date certain as may be requested by the owner or the legal representative of the owner’s estate. As soon as practicable, the owner or the owner’s estate shall repay all such proceeds and any premiums, loans and loan interest paid by the life settlement provider.

IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – OWN – STATE APPROVED. NY CLS Ins § 7813(b).

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