NY Life and Health
In order to be a life settlement broker, a person must complete which of the requirements
Submit Fingerprints Fingerprinting is required and will be used for a criminal history record check so the Superintendent may access the character and trustworthiness of the applicant prior to licensing
In a life settlement contract, who does the life settlement broker represent
The Owner Life Settlement Broker is a person who, for compensation, solicits, negotiates, or offers to negotiate a life settlement contract. Life settlement brokers represent only the policyowners
Which of the following is not considered business of a life settlement
A producer discusses the advantages of a Universal life policy and how the flexible premium allows the owner to control the cash value and death benefit income
Which of the following is true about a STOLI account in the state of New York
Direct or indirect participation in STOLIs is prohibited The state of NEW York does not allow direct or indirect participation in STOLIs. It is also illegal to use atrust, directly or indirectly, to provide funds for a STOLI transaction in a manner that would violate insurable interest laws of this state.
What is the minimum age for applying for a life settlement brokers license
18 The age requirement to act as a life settlement broker in this state is age 18
An investor buys a life insurance policy on an elderly person in order to sell it for a life settlement. This is an example of
A STOLI Policy Stranger Originated Life Insurance (STOLI) policies are usually purchased by people who have no relationship with the insured with the intention of selling them for life settlements
Which of the following best describes an owner of a life settlement policy
A person who is selling the contract The term "owner" refers refers to the owner of the policy who may seek to enter into a life settlement contract. This does noy include an insurance provider , a qualified institutional buyer, a financial entity, a special purpose entity, or a rellated provider trust.
Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?
Insurable Interest Because the purchaser of a Stranger-originated Life Insurance policy doesn't know the insured, or have any interest in the insured's longevity, STOLI policies violate the principal of insurable interest
Which of the following terms means a result of a calculation based on the average number of months the insured is projected to live due to medical history and mortality factors
Life Expectancy Life expectancy is an important concept in life settlement contracts.. It refers to a calculation based on the average number of months the insured is projected to live due to medical history and mortality factors ( an arithmetic mean)
If an association is applying for a life settlement broker's license, which of the following requirements must the association meet
Authorize a natural person to act individually as a broker If a firm or association is applying for a broker's license, they must name and authorize natural persons to act individually as life settlement brokers for the firm
Life expectancy is used in the calculation of which of the following
Life settlements One of the most important issues in calculating the amount to be paid under a life settlement is the life expectancy of the owner of the policy. The insurance company will have to pay premiums for the duration of the contract, thus adding to the cost of the purchase
Life Settlement Contracts must be approved by
The Superintendent of Insurance The Superintendent must approve all life settlement contract forms as well as the final contract.
The form used to establish the terms for both parties when a person sells his life insurance policy to a 3rd unrelated person is called a
Life Settlement Contract When a policyowner decides he no longer needs his insurance coverage and decides to sell his policy to a 3rd party who has no insurable interest, he may establish a life settlement contract with the life settlement provider. The contract establishes all the terms and must have been approved by the Superintendent
The person who, for compensation, solicits, negotiates, or offers to negotiate a life settlement contract is the
Life Settlement Broker Life settlement broker is a person who , for compensation, solicits, negotiates, or offers to negotiate a life settlement contract
Which of the following is NOT true of life settlements
The person must be terminally ill With life settlements, unlike with viatical settlements, the seller does not need to be terminally ill. They usually involve life insurance policies with a face amount of $250,000 or more, "key-person" coverage, corporate-owned policies, or policies representing excess coverage that is no longer needed, and could be sold for an amount greater than the current cash value
