§ 7802. Definitions. In this article:\n (a) "Accredited investors" shall be as defined in regulation D, rule\n501 of the Federal Securities Act of 1933, as amended.\n (b) "Advertisement" means any written, electronic or printed\ncommunication or any communication by means of recorded telephone\nmessages or transmitted on radio, television, the Internet or similar\ncommunications media, including film strips, motion pictures and videos,\npublished, disseminated, circulated or placed before the public,\ndirectly or indirectly, for the purpose of creating an interest in or\ninducing a person to purchase, sell, assign, devise, bequest or transfer\nthe death benefit or ownership of, a life insurance policy or an\ninterest in a life insurance policy pursuant to a life settlement\ncontract.\n (c)(1) "Business of life settlements" means an activity involving, but\nnot limited to, offering to enter into, soliciting, negotiating,\nprocuring, effectuating, monitoring, or tracking life settlement\ncontracts.\n (2) For purposes of this article, "business of life settlements" shall\nalso include:\n (A) such acts or transactions effectuated in this state by mail or\notherwise from outside this state; and\n (B) doing or proposing to do any business in substance equivalent to\nthe business of life settlements in a manner designed to evade the\nprovisions of this chapter.\n (d) "Compensation" means anything of value, including money, credits,\nloans, interest on premium, forgiveness of principal or interest,\nvacations, prizes, gifts or the payment of employee salaries or\nexpenses, whether paid as commission or otherwise.\n (e) "Financing entity" means an accredited investor:\n (1) whose principal activity in connection with the transaction is\nproviding funds to effect the life settlement contract or to purchase\none or more policies; and\n (2) who has an agreement in writing with a life settlement provider to\nfinance the acquisition of a life settlement contract.\n (f) "Financing transaction" means a transaction in which a licensed\nlife settlement provider obtains financing from a financing entity,\nincluding any secured or unsecured financing, any securitization\ntransaction, or any securities offering which is registered or exempt\nfrom registration under federal and state securities laws.\n (g) "Insured" means a person covered under a policy that is or may be\nthe subject of a life settlement contract.\n (h) "Insurer" means a life insurance company or a fraternal benefit\nsociety.\n (i) "Life expectancy" means the arithmetic mean of the number of\nmonths the insured can be expected to live taking into consideration\nmedical records and appropriate experiential data.\n (j) "Life settlement broker" means a person who, for compensation,\nsolicits, negotiates or offers to negotiate a life settlement contract;\nexcept that such term shall not include a licensed life settlement\nprovider, or representative thereof, licensed attorney at law, certified\npublic accountant, or financial planner that is accredited by a\nnationally recognized accreditation agency acceptable to the\nsuperintendent, who is retained in his or her professional capacity,\ndoes not advertise as being in the business of life settlements and is\ncompensated without regard to whether a life settlement contract is\neffectuated.\n (k)(1) "Life settlement contract" means an agreement establishing the\nterms under which compensation is provided to an owner, which\ncompensation is less than the expected death benefit of the policy, in\nreturn for the assignment, transfer, sale, release, devise or bequest of\nany portion of:\n (A) the death benefit;\n (B) the ownership of the policy; or\n (C) any beneficial interest in the policy, or in a trust or any other\nentity that owns the policy, where a primary purpose of the transaction\nis to acquire the policy.\n (2) "Life settlement contract" shall include an agreement, entered\ninto after the effective date of thi
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.