N.Y. Insurance Law § 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 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.