Guidance for the Filing of Life Settlement Forms in Accordance with Sections 7806 and 7811 of the Insurance Law

In accordance with section 7806 of the Insurance Law, a licensed life settlement provider may not enter into a life settlement contract unless specimen copies of the life settlement contract form, any amendments or addendums thereto, the application form and the disclosure forms and consumer information booklet required by section 7811(a) and (b) of the Insurance Law, have been submitted to and approved by the Department of Financial Services. These forms may not be used prior to receipt of approval from the Department. Any changes or modifications to these forms made subsequent to approval must also be submitted to the Department for approval prior to use.

Filings must comply with the following procedural requirements:

  1. Each form submitted, including the contract form, any amendment forms, application form, disclosure forms and consumer information booklet, must contain a unique identifier set forth in the lower left corner of the first page of the form. The identifier may be made up of numbers or letters or a combination of both. For example: LSC-2013.
  2. The "Re" or caption of the submission letter must identify the filing as a "Life Settlement Contract Forms" filing.
  3. Filings must be submitted in duplicate, in writing, to: Mr. Peter Dumar, Jr., Chief Insurance Attorney, New York State Department of Financial Services, Life Bureau, Suite 1910, One Commerce Plaza, Albany, New York 12257.
Model disclosure forms and a model consumer information booklet are posted on the Department's website. It is suggested that life settlement providers use the model forms for their forms submissions or as guidance in drafting their disclosure forms.

The following draft regulation sections are posted on the Department's website: the "Life settlement contract forms filing requirements for life settlement providers" section and the "Disclosure" section. Although these draft regulation sections are not yet finalized, it is suggested that life settlement providers review these sections and use them as guidance when preparing their forms. Note that:

  1. The Life Settlement Contract Forms Filing section of the draft regulation contains several requirements for life settlement contract forms and life settlement application forms.
  2. The Disclosure section of the draft regulation contains the minimum requirements for the consumer information booklet. If a life settlement provider chooses not to use the model booklet, it is suggested that the provider use the Disclosure section of the draft regulation as guidance in preparing its booklet.

For questions about this guidance, please contact James Hulme, Associate Insurance Attorney, Life Bureau at (518) 486-5258 or by email: James Hulme.