§ 7815 — Stranger-originated life insurance

New York § 7815

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 78: Life Settlements

Text

§ 7815. Stranger-originated life insurance. (a) In this chapter,\n"stranger-originated life insurance" means any act, practice or\narrangement, at or prior to policy issuance, to initiate or facilitate\nthe issuance of a policy for the intended benefit of a person who, at\nthe time of policy origination, has no insurable interest in the life of\nthe insured under the laws of this state, including:\n (1) the purchase of life insurance with resources or guarantees from\nor through a person that, at the time of policy initiation, could not\nlawfully initiate the policy;\n (2) an arrangement or other agreement to transfer the ownership of the\npolicy or the policy benefits to another person; or\n (3) a trust or similar arrangement that is used, directly or\nindirectly, for the purpose of purchasing one or more policies for the\nintended benefit of another person in a manner that violates the\ninsurable interest laws of this state.\n (b) Stranger-originated life insurance arrangements do not include\nlawful life settlement contracts as permitted by this article or those\npractices set forth in paragraph three of subsection (k) of section\nseven thousand eight hundred two of this article, provided that such\ncontracts or practices are not for the purpose of evading regulation\nunder this article.\n (c) No person shall directly or indirectly engage in any act, practice\nor arrangement that constitutes stranger-originated life insurance.\n (d) The failure to follow the provision of subsection (c) of this\nsection shall be a defined violation under article twenty-four of this\nchapter.\n