New York Life Settlements
New York is a pioneer in life settlement regulation, with one of the strongest consumer protection frameworks in the nation. Accelerated Life Solutions is fully licensed in New York, serving financial advisors and their high-net-worth clients.
Life Settlement Laws in New York
New York was among the first states to enact life settlement legislation and maintains some of the most stringent consumer protections. The New York Department of Financial Services (DFS) oversees all life settlement activity, with strict licensing, disclosure, and anti-fraud requirements.
- Regulated by the NY Department of Financial Services (DFS)
- 60-day rescission period — among the longest in the nation
- Mandatory disclosure of all offers received, even those not presented
- Strict anti-STOLI (Stranger-Originated Life Insurance) provisions
- Enhanced privacy protections beyond federal HIPAA requirements
- Required competency standards for all licensed professionals
Regulatory Framework
New York requires all life settlement brokers and providers to be licensed by the state’s Department of Insurance. Accelerated Life Solutions is fully licensed and compliant in New York.
Consumer Protections
New York law mandates full disclosure, rescission periods, and privacy protections for all life settlement transactions — ensuring your clients are fully informed.
Commonly Accepted in New York?
New York's 60-day rescission period provides additional protection. Viatical settlements for terminally ill policyholders may be exempt from certain waiting period requirements.
How Accelerated Life Solutions Serves New York Advisors
We partner exclusively with financial professionals in New York — financial advisors, CPAs, estate attorneys, and insurance agents — to deliver fully compliant, transparent, and competitive life settlement outcomes.
Our New York Process
- 1Confidential policy review and preliminary valuation
- 2Full underwriting and documentation coordination
- 3Competitive bidding among institutional buyers
- 4Transparent offer presentation with full disclosures
- 5Compliant closing with legal coordination
Frequently Asked Questions
What makes New York's life settlement laws unique?
New York has a 60-day rescission period (most states have 15 days), mandatory disclosure of all offers, and strict anti-STOLI provisions. These create one of the most protective environments for policyowners in the nation.
How long is the rescission period in New York?
New York provides a 60-day rescission period after the settlement contract is executed — the longest in the nation. During this time, the policyowner can cancel without penalty.
Are life settlement proceeds taxable in New York?
Yes. Life settlement proceeds are generally subject to both federal and New York State income tax. The gain is typically calculated as proceeds minus cost basis (premiums paid less any dividends or withdrawals). Consult a tax advisor for details.
Can irrevocable life insurance trusts (ILITs) sell policies in New York?
Yes. Trust-owned policies can be settled in New York, subject to the trust's terms and the trustee's fiduciary obligations. Accelerated Life Solutions has extensive experience with trust-owned and complex ownership cases.
What is New York's anti-STOLI provision?
STOLI (Stranger-Originated Life Insurance) refers to policies taken out primarily for resale. New York law prohibits these arrangements and enforces a 2-year waiting period to ensure the original policyholder had a legitimate insurance interest.
Ready to Explore Life Settlements in New York?
Contact us for a complimentary, no-obligation policy appraisal for your New York clients. We typically respond within 24 hours.