N.Y. Insurance Law § 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) is deemed by the superintendent to be trustworthy and competent to

act as a life settlement intermediary;

(B) is otherwise qualified as required in this article; and

(C) has complied with the prerequisites prescribed in this article.

(2) Every registration issued pursuant to this section shall expire on

June thirtieth of odd-numbered years.

(c)(1) Application for a life settlement intermediary registration

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 established by the superintendent.

(2) The applicant for a life settlement intermediary registration

shall provide:

(A) the state in which the life settlement intermediary is domiciled

or resident;

(B) the principal place of business of the life settlement

intermediary;

(C) all other states in which the life settlement intermediary is

doing or intends to do business;

(D) a detailed plan of operation; and

(E) the identities of the life settlement intermediary executive

officer or officers directly responsible for such business, and all

stockholders (except stockholders owning fewer than ten percent of the

voting shares of a life settlement intermediary 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

registrant.

(d) Each life settlement intermediary that is required to register

pursuant to this section shall also furnish such information as may be

required by the superintendent to:

(1) verify that the person or persons qualify as a life settlement

intermediary; and

(2) determine compliance with any applicable state law.

(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 may require an applicant for such registration

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 registration 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.

(g) The superintendent, in the exercise of the superintendent's

discretion, may refuse to issue a life settlement intermediary

registration 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.

(h) Every registration 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.

(i)(1) Before the renewal of any life settlement intermediary

registration shall be issued, an application for renewal of the

registration 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, and the application shall be

accompanied by a fee in an amount to be established by the

superintendent.

(2) If an application for renewal registration shall have been filed

with the superintendent before the expiration of the registration, the

registration sought to be renewed shall continue in full force and

effect either until the issuance by the superintendent of the renewal

registration applied for or until five days after the superintendent

shall have refused to issue such renewal registration and shall have

given notice of such refusal to the applicant. Before refusing to renew

any such registration, 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 registration shall be filed

with the superintendent not less than sixty days prior to the date the

registration expires or the applicant may be subject to a further fee

for late filing, as prescribed by the superintendent.

(j) A life settlement intermediary shall, as to any subsequent changes

in any of the items set forth in paragraph two of subsection (c) and

paragraph one of subsection (d) of this section, notify the

superintendent in writing within thirty days of any such change.

(k) Every individual applicant for registration under this section

shall be eighteen years of age or older at the time of the issuance of

such registration.