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New York Insurance - Article 78 - § 7803 License Requirements for Life Settlement Providers

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    §  7803.  License  requirements  for life settlement providers. (a) No
  person shall engage in the  business  of  life  settlements  as  a  life
  settlement  provider  in this state without having authority to do so by
  virtue of a  life  settlement  provider  license  issued  and  in  force
  pursuant to this article.
    (b)(1) The superintendent may issue a life settlement provider license
  to  any person who is deemed by the superintendent to be trustworthy and
  competent to act as a life settlement  provider  and  who  is  otherwise
  qualified  as  required  in  this  article and who has complied with the
  prerequisites prescribed in this article.
    (2) Every license issued pursuant to this section shall expire on June
  thirtieth of odd-numbered years.
    (c)(1) Application for a life settlement  provider  license  shall  be
  made  to the superintendent by the applicant on a form prescribed by the
  superintendent, and the application shall be accompanied by a fee in  an
  amount to be established by the superintendent.
    (2) The applicant for a life settlement provider license shall:
    (A)   fully   disclose   the  identity  of  all  stockholders  (except
  stockholders owning fewer than ten percent of the  voting  shares  of  a
  life  settlement  provider  whose shares are publicly traded), partners,
  officers, members, directors and persons with  a  controlling  interest.
  For  purposes of this section, "controlling interest" means a person who
  directly or indirectly, has the  power  to  cause  to  be  directed  the
  management, control or activities of such licensee;
    (B) provide a detailed plan of operation;
    (C)  provide,  if  a legal entity, a certificate of good standing from
  the state of its domicile;
    (D) provide an anti-fraud plan that meets the requirements of  article
  four of this chapter;
    (E)  demonstrate  financial  accountability  as evidenced by a bond or
  other  method  for  financial  accountability  as  determined   by   the
  superintendent pursuant to regulation; and
    (F) provide any other information required by the superintendent.
    (d)  The  superintendent  may require an applicant for such license to
  submit a set of fingerprints. Such fingerprints shall  be  submitted  to
  the  division  of criminal justice services for a state criminal history
  record check, as defined in subdivision one of  section  three  thousand
  thirty-five  of  the  education law, and may be submitted to the federal
  bureau of investigation for a national criminal  history  record  check.
  All such criminal history records sent to the superintendent pursuant to
  this  paragraph shall be confidential pursuant to the applicable federal
  and state laws, rules and regulations, and shall not be published or  in
  any  way  disclosed  to  persons  other  than the superintendent, unless
  otherwise authorized by  law.  The  superintendent  shall  provide  such
  applicant  with  a  copy  of his or her criminal history record, if any,
  together with a copy of article twenty-three-A of  the  correction  law,
  and  inform such applicant of his or her right to seek correction of any
  incorrect information contained in such record pursuant  to  regulations
  and procedures established by the division of criminal justice services.
  All  determinations to grant or deny clearance for licensure pursuant to
  this section shall be in accordance with subdivision sixteen of  section
  two  hundred  ninety-six of the executive law and article twenty-three-A
  of the correction law. When the superintendent  denies  an  application,
  written  notice  of such determination shall be given to the prospective
  applicant who shall be afforded notice and the right  to  be  heard  and
  offer proof in opposition to such determination.

    (e)(1)  As part of the application, the applicant shall submit a power
  of attorney designating the superintendent as agent for the  purpose  of
  receiving service of legal documents or process.
    (2)  The  power  of attorney shall include the name and address of the
  officer, agent, or other person to whom such legal documents or  process
  shall  be forwarded by the superintendent or his or her deputy on behalf
  of such life settlement provider.
    (3) Service of legal documents  or  process  upon  a  life  settlement
  provider  pursuant  to  this  subsection  shall  be  made by serving the
  superintendent, any deputy superintendent or any  salaried  employee  of
  the  department whom the superintendent designates for such purpose with
  two copies thereof and the payment  of  a  fee  of  forty  dollars.  The
  superintendent  shall  forward a copy of such legal documents or process
  by registered or certified mail to the life settlement provider  at  the
  address given in its written certificate of registration, and shall keep
  a  record  of all legal documents or process so served. Service of legal
  documents or process so made shall be deemed made within the territorial
  jurisdiction of any court in this state.
    (f) The  superintendent,  in  the  exercise  of  the  superintendent's
  discretion,  may  refuse  to issue a life settlement provider license in
  the name of any person if not  satisfied  that  any  officer,  employee,
  stockholder,  partner,  director,  member,  agent, or responsible person
  thereof, who may materially influence the applicant's conduct, meets the
  standards of this article.
    (g) Every license issued pursuant to this section may be  renewed  for
  the  ensuing  period  of  twenty-four  months  upon  the  filing  of  an
  application in conformity with this section.
    (h)(1) Before the renewal of  any  life  settlement  provider  license
  shall be issued, an application for renewal of the license shall be made
  to  the  superintendent  by  the  applicant  on a form prescribed by the
  superintendent and containing such information as the superintendent may
  prescribe. The application shall be accompanied by a fee in an amount to
  be established by the superintendent.
    (2) If an application for a renewal license shall have been filed with
  the superintendent before  the  expiration  of  the  license,  then  the
  license  sought  to  be  renewed shall continue in full force and effect
  either until the issuance by the superintendent of the  renewal  license
  applied  for  or  until  five  days  after the superintendent shall have
  refused to issue such renewal license and shall  have  given  notice  of
  such  refusal  to  the  applicant.  Before  refusing  to  renew any such
  license,  the  superintendent  shall  notify  the   applicant   of   the
  superintendent's  intention  to  do  so  and shall give such applicant a
  hearing.
    (3) An application for the renewal of a license shall  be  filed  with
  the  superintendent  not  less  than  sixty  days  prior to the date the
  license expires or the applicant may be subject to  a  further  fee  for
  late filing, as prescribed by the superintendent.
    (i)   A  life  settlement  provider  licensee  shall  provide  to  the
  superintendent new or revised  information  about  stockholders  (except
  stockholders  owning  fewer  than  ten percent of the voting shares of a
  life settlement provider whose shares are  publicly  traded),  partners,
  officers,  members,  directors,  designated  employees or persons with a
  controlling interest within thirty days of the change.
    (j) Every individual applicant for a license under this section  shall
  be  eighteen  years  of age or older at the time of the issuance of such
  license.
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Last modified: February 15, 2014