7801 – Short Title.

§ 7801. Short title. This article shall be known and may be cited as the “life settlements act”.

7802 – Definitions.

§ 7802. Definitions. In this article: (a) “Accredited investors” shall be as defined in regulation D, rule 501 of the Federal Securities Act of 1933, as amended. (b) “Advertisement” means any written, electronic or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet or similar communications […]

7803 – License Requirements for Life Settlement Providers.

§ 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 […]

7804 – Registration Requirements for Life Settlement Intermediaries.

§ 7804. Registration requirements for life settlement intermediaries. (a) No person shall act as a life settlement intermediary in this state without having authority to do so by virtue of a registration issued and in force pursuant to this article. (b)(1) The superintendent may issue a life settlement intermediary registration to any person who: (A) […]

7805 – License and Registration Revocation.

§ 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 […]

7806 – Life Settlement Contract Forms.

§ 7806. Life settlement contract forms. (a) No licensed life settlement provider shall enter into a life settlement contract subject to this chapter unless the life settlement contract form, application form, and any other form as may be prescribed by regulation, has been filed with and approved by the superintendent. The superintendent may disapprove any […]

7807 – Reporting Requirements.

§ 7807. Reporting requirements. (a)(1) Every licensed life settlement provider shall file in the office of the superintendent, annually on or before the first day of March, a statement, to be known as its annual statement, verified by the oath of at least two of its principal officers, showing its condition at the end of […]

7808 – Examinations and Investigations.

§ 7808. Examinations or investigations. The superintendent may make an examination or investigation into the affairs of any life settlement provider, life settlement broker, life settlement intermediary, applicant for licensure as a life settlement provider or life settlement broker, or applicant for registration as a life settlement intermediary as prescribed under article three of this […]

7809 – Advertising.

§ 7809. Advertising. (a) A life settlement provider, life settlement intermediary or life settlement broker licensed pursuant to this article may conduct or participate in advertisements within this state. The advertisements shall comply with all advertising and marketing laws or rules and regulations as may be promulgated by the superintendent. (b) Advertisements shall be accurate, […]

7810 – Privacy.

§ 7810. Privacy. (a) Except as otherwise permitted or required by law, no life settlement provider, life settlement broker, or life settlement intermediary, or any authorized representative thereof, insurer, information bureau, rating agency or company, or any other person with actual knowledge of an insured or owner’s identity, shall disclose the identity of the insured […]

7811 – Disclosures to Owners and Insureds.

§ 7811. Disclosures to owners and insureds. (a) The life settlement provider or life settlement broker shall provide the owner with a separate written document conspicuously displaying the information and disclosures required by this subsection. The separate document shall be signed by the owner and life settlement provider, no later than the date the life […]

7812 – Life Insurance Applications.

§ 7812. Life insurance applications. (a) Without limiting the ability of an insurer to assess the insurability of a policy applicant and to determine whether or not to issue the policy, and in addition to other questions an insurer may lawfully pose to a life insurance applicant, insurers may inquire in the application for insurance […]

7813 – General Rules.

§ 7813. General rules. (a) A life settlement provider entering into a life settlement contract shall first obtain a written consent from the insured to the release of the insured’s medical records subject to the limitations contained in section seven thousand eight hundred ten of this article. (b) The insurer shall respond to a request […]

7814 – Prohibited Practices.

§ 7814. Prohibited practices. (a) No person shall: (1) enter into a life settlement contract if the person knows or reasonably should have known that the policy was obtained in a false, deceptive or misleading way; (2) engage in any transaction, practice or course of business if the person knows or reasonably should have known […]

7815 – Stranger-Originated Life Insurance.

§ 7815. Stranger-originated life insurance. (a) In this chapter, “stranger-originated life insurance” means any act, practice or arrangement, at or prior to policy issuance, to initiate or facilitate the issuance of a policy for the intended benefit of a person who, at the time of policy origination, has no insurable interest in the life of […]

7816 – Penalties and Civil Remedies.

§ 7816. Penalties and civil remedies. (a)(1) If, after notice and hearing, the superintendent determines that any information required by subsection (a) or (c) of section seven thousand eight hundred eleven of this article knowingly was not provided or knowingly was delayed in being provided by the life settlement broker to the material detriment of […]

7817 – Authority to Promulgate Regulations.

§ 7817. Authority to promulgate regulations. The superintendent may promulgate regulations implementing this article.

7818 – Nonconforming Contracts.

§ 7818. Nonconforming contracts. (a) Except as otherwise specifically provided in this chapter, any life settlement contract subject to this chapter that is in violation of any of the provisions of this chapter shall be valid and binding upon the life settlement provider, but in all respects in which the contract’s provisions are in violation […]

7819 – Applicability and Choice of Law.

§ 7819. Applicability and choice of law. (a) The provisions of this article shall apply to any life settlement contract made, proposed to be made, or solicited with a resident of this state or any owner physically in this state. (b)(1) If there is more than one owner on a single policy, and the owners […]

7820 – Severability.

§ 7820. Severability. If any clause, sentence, paragraph, section or part of this article shall be adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, […]