§ 7814. Prohibited practices. (a) No person shall:\n (1) enter into a life settlement contract if the person knows or\nreasonably should have known that the policy was obtained in a false,\ndeceptive or misleading way;\n (2) engage in any transaction, practice or course of business if the\nperson knows or reasonably should have known that the intent was to\navoid the disclosure or other notice requirements of this article;\n (3) engage in any fraudulent act or practice in connection with any\ntransaction relating to any life settlement;\n (4)(A) enter into a premium finance loan with an applicant for a new\npolicy or an owner, pursuant to which the person providing premium\nfinancing, or any affiliate, parent corporation or subsidiary of the\nperson, shall receive any proceeds, fees or other consideration,\ndirectly or indirectly, from the policy or owner of the policy or any\nother person, other than commissions earned by a licensed insurance\nproducer on the policy, with respect to the premium finance loan, that\nare in addition to the amounts required to pay the principal, interest\nand any reasonable costs, fees or expenses incurred by the lender or\nborrower related to the premium finance loan or subsequent sale of such\nloan; provided, further, that any payments, charges, fees or other\namounts in addition to the amounts required to pay the principal,\ninterest and any reasonable costs or expenses incurred by the lender or\nborrower related to the premium finance loan shall be remitted to the\noriginal owner of the policy or to the original owner's estate if the\noriginal owner is not living at the time of the determination of the\noverpayment. For purposes of this paragraph, "owner" means the owner of\na policy whether or not entering into, or offering to enter into, a life\nsettlement contract;\n (B) If, at any time, a policy that is the subject of a premium finance\nloan specified in subparagraph (A) of this paragraph is sold, assigned,\ntransferred, devised or bequeathed pursuant to the terms of a premium\nfinance loan, any proceeds or other consideration received other than\nthe amounts specified in subparagraph (A) of this paragraph shall be\nremitted to the original owner of the policy or to the original owner's\nestate if the original owner is not then living;\n (5) with respect to any life settlement contract, knowingly fail to\ndisclose any affiliation or contractual arrangement as required by this\narticle;\n (6) directly or indirectly, purchase or obtain an interest in any\npolicy that is the subject of a life settlement contract where the\nperson has acted as a life settlement broker or life settlement\nintermediary with respect to the policy, unless such affiliation has\nbeen disclosed to the owner pursuant to paragraph three of subsection\n(c) of section seven thousand eight hundred eleven of this article; and\n(A) if a life settlement broker, the broker has provided all offers and\ncounter offers pursuant to paragraph two of subsection (c) of section\nseven thousand eight hundred eleven of this article, and has conducted\nthe transaction on a fair and equitable arm-length basis; or (B) with\nrespect to a life settlement intermediary, the intermediary complies\nwith subsection (o) of section seven thousand eight hundred thirteen of\nthis article;\n (7) directly or indirectly provide any compensation to any person\nacting in this state as a life settlement broker, and no person shall\naccept any such compensation, unless the person is a licensed life\nsettlement broker pursuant to the provisions of section two thousand one\nhundred thirty-seven of this chapter;\n (8) directly or indirectly pay any referral or finder's fee or provide\nany other compensation to any owner's physician, attorney, accountant,\ninsurance producer, insurance consultant, or other person providing\nmedical, legal or financial planning services to the owner, or to any\nother person, other than a life settlement broker, repres
‹ 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.