New York insurance laws governing life settlements do not apply to a New York-licensed life settlement provider that wants to buy a policy from an owner living in Canada, according to New York State Insurance Department officials.
The officials, in the Office of General Counsel at the New York State Insurance Department, also have ruled that New York’s Life Settlement Act of 2009 does not apply to Canadian residents who want to buy a life insurance policy from a New York resident who is a family member or friend of the Canadian residents.
The office was not quite as clear about whether it is legal for a financial advisor to suggest that a resident of the state consider selling a life insurance policy to family members or friends who live in Canada.
New York officials say an accredited financial advisor or financial planner who is not accredited as a life settlement broker in New York may help sell the policy in Canada to a New York resident, provided that the advisor does not advertise as being in the business of life settlements and does not receive compensation based on the sale of life settlements.
Officials did not identify the party that asked about the topic.