7805. License and registration revocation. (a) The superintendent may suspend, revoke or refuse to renew the license of any life settlement provider or the registration of any life settlement intermediary, if, after notice and hearing, the superintendent determines that the life settlement provider or life settlement intermediary, or any officer, partner, member, or key management personnel thereof, has:
(1) violated any insurance laws or any regulation promulgated thereunder, any subpoena or order of the superintendent or of another state's insurance commissioner, or any other law in the course of the licensee's dealings in such capacity;
(2) provided materially incorrect, materially misleading, materially incomplete or materially untrue information in the license or registration application;
(3) obtained or attempted to obtain a license or registration through misrepresentation or fraud;
(4)(A) used fraudulent, coercive or dishonest practices;
(B) demonstrated incompetence;
(C) demonstrated untrustworthiness; or
(D) demonstrated financial irresponsibility in the conduct of business in this state or elsewhere;
(5) improperly withheld, misappropriated or converted any monies or properties received in the course of business in this state or elsewhere;
(6) intentionally misrepresented the terms of any insurance contract or life settlement contract or any application therefor;
(7) been convicted of a felony, or has been guilty of fraudulent or dishonest practices or other misconduct or malfeasance;
(8) admitted or been found to have committed any insurance unfair trade practice or fraud;
(9) had a life settlement provider license or life settlement intermediary registration, or an equivalent denied, suspended or revoked in any other state, province, district or territory;
(10) forged another person's name to an application for insurance or life settlement contract or to any document related to an insurance or life settlement transaction;
(11) knowingly conducted the business of life settlements with a person who is not licensed or registered unless such person is not required to be licensed or registered;
(12) demonstrated a pattern of unreasonable payments to owners or insureds;
(13) failed to honor contractual obligations set out in a life settlement contract;
(14) sold, assigned, pledged or otherwise transferred the ownership of a settled policy to a person other than as provided in this article; or
(15) failed to protect the privacy of the insured or owner or other person for whom the licensee or registrant was required to provide protection pursuant to this article.
(b)(1) Before the superintendent suspends, revokes or refuses to renew the license of a life settlement provider or the registration of a life settlement intermediary, the superintendent shall give notice to the licensee or registrant and shall hold, or cause to be held, a hearing not less than ten days after the giving of such notice, except that where, in the judgment of the superintendent, the public health, safety or welfare so requires, a license or registration may be suspended for up to ten days prior to a hearing.
(2) In lieu of revoking or suspending the license or registration for any of the causes enumerated in subsection (a) of this section, the superintendent may impose a civil penalty not to exceed ten thousand dollars for each violation.
(3) Upon the failure of such licensee or registrant to pay such penalty ordered pursuant to paragraph two of this subsection within twenty days after the mailing of such order, postage prepaid, registered, and addressed to the last known place of business of such licensee or registrant, unless such order is stayed by a court of competent jurisdiction, the superintendent may revoke the license of such licensee or the registration of such registrant, or may suspend the same for such period as the superintendent determines.
Last modified: February 3, 2019