New York State Seal
STATE OF NEW YORK
INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004

The Office of General Counsel issued the following opinion on June 3, 2002, representing the position of the New York State Insurance Department.

RE: Viatical Settlement Companies and Viatical Settlement Brokers, and Regulation 173.

Question Presented:

Do viatical settlement companies and viatical settlement brokers come within the purview of N.Y. Comp. Codes R. & Regs. tit. 11, §§ 421.0-421.10 (2002) (Regulation 173)?

Conclusion:

No.

Facts:

No specific facts were provided.

Analysis:

N.Y. Comp. Codes R. & Regs. tit. 11, § 421.1(d) (2002) (Regulation 173) provides that the term "licensee" means a licensee as defined by Section 420.3 (p)(1) (Regulation 169), except that licensee shall not include: a purchasing group; or an unauthorized insurer in regard to the excess line business conducted pursuant to Section 2118 of the Insurance Law and Part 27 of this Title (Regulation 41).

N.Y. Comp. Codes R. & Regs. tit. 11, § 420.3(p)(1)(2001) (Regulation 169) defines the term "licensee" as follows:

(p)(1) [A] person licensed, or required to be licensed, or authorized, or required to be authorized, or registered, or required to be registered pursuant to the Insurance Law of this State; a health maintenance organization holding, or required to hold, a certificate of authority pursuant to Article 44 of the Public Health Law; or an unauthorized insurer in regard to the excess line business conducted pursuant to section 2118 of the Insurance Law and Part 27 of this Title (Regulation 41); but shall not include a registered service contract provider, charitable annuity society, or a licensed viatical settlement company or viatical settlement broker. (emphasis added)

Accordingly, since viatical settlement companies and viatical settlement brokers are expressly exempted from the definition of licensee in N.Y. Comp. Codes R. & Regs. tit. 11, § 420.3(p)(1)(2001)(Regulation 169), they do not come within the purview of N.Y. Comp. Codes R. & Regs. tit. 11, §§ 421.0-421.10 (2002) (Regulation 173).

For further information, you may contact Attorney Pascale Joasil at the New York City office.