N.Y. Insurance Law § 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 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.