Title 24, Insurance

PART I. GENERAL PROVISIONS [§431C-1] Short title. This chapter may be cited as the Life Settlements Act. [L 2012, c 256, pt of §1]

PART II. EXAMINATIONS [§431C-11] Examination. (a) The commissioner may, when the commissioner deems it reasonably necessary to protect the interests of the public, examine the business and affairs of any licensee or applicant for a license. The commissioner may order any licensee…

[§431C-12] Conduct of examinations. (a) Upon determining that an examination under section 431C-11 should be conducted, the commissioner shall issue an examination warrant appointing one or more examiners to perform the examination and instructing them as to the scope of the exam…

[§431C-13] Examination reports. (a) Examination reports shall be comprised of only facts appearing upon the books, from the testimony of its officers, directors, employees, or agents or other persons examined concerning its affairs, and such conclusions and recommendations as the…

[§431C-14] Confidentiality of examination information. (a) Names and individual identification data for all owners, purchasers, and insureds shall be considered private and confidential information and shall not be disclosed by the commissioner, unless the disclosure is to anothe…

[§431C-15] Examiner; conflict of interest. (a) An examiner shall not be appointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examinati…

[§431C-16] Immunity from liability. (a) No cause of action shall arise nor shall any liability be imposed against the commissioner, the commissioner's authorized representatives, or any examiner appointed by the commissioner for any statements made or conduct performed in good fa…

[§431C-17] Investigative authority of the commissioner. The commissioner may investigate suspected fraudulent life settlement acts and persons engaged in the business of life settlements. [L 2012, c 256, pt of §1]

[§431C-2] Definitions. As used in this chapter, unless the content otherwise requires: "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 simila…

PART III. ADVERTISING [§431C-21] Advertising. (a) A broker or provider licensed pursuant to this chapter may conduct or participate in advertisements within this State. Such advertisements shall comply with all advertising and marketing laws or rules adopted by the commissioner t…

[§431C-3] Licensing requirements. (a) No person, wherever located, shall act as a provider or broker with an owner who is a resident of this State, without first having obtained a license from the commissioner. (b) Application for a provider or broker license shall be made to the…

PART IV. DISCLOSURES AND GENERAL PROCEDURES [§431C-31] Disclosures to owners. (a) The provider shall provide in writing, in a separate document that is signed by the owner and provider, the following information to the owner no later than the date the life settlement contract is …

[§431C-32] Disclosure to insurer. (a) Without limiting the ability of an insurer from assessing the insurability of a policy applicant and determining whether or not to issue the policy, and in addition to other questions an insurance carrier may lawfully pose to a life insurance…

[§431C-33] General rules. (a) A provider entering into a life settlement contract with any owner of a policy, wherein the insured is terminally or chronically ill, shall first obtain: The provider, broker, or its authorized representative shall be limited to contact for the purpo…

[§431C-34] Buyer's guide. The commissioner by rule shall require delivery of a buyer's guide or a similar consumer advisory package to owners during the process of soliciting a life settlement contract. [L 2012, c 256, pt of §1]

[§431C-4] License suspension, revocation, or refusal to renew. (a) The commissioner may suspend, revoke, or refuse to renew the license of any licensee if the commissioner finds that: (b) Before the commissioner may deny a license application or suspend, revoke, or refuse to rene…

PART V. MISCELLANEOUS PROVISIONS [§431C-41] Prohibited practices. (a) It is unlawful for any person to: (b) A violation of this section shall be deemed a fraudulent life settlement act. [L 2012, c 256, pt of §1]

[§431C-42] Fraudulent life settlement acts prohibited. It is a violation of this chapter for any person, provider, broker, or any other party related to the business of life settlements, to commit a fraudulent life settlement act. For the purposes of this part, "fraudulent life s…

[§431C-43] Fraud warning required. (a) Life settlement contracts and applications for life settlement contracts, regardless of the form of transmission, shall contain the following statement or a substantially similar statement: "Any person who knowingly presents false informatio…

[§431C-44] Mandatory reporting of fraudulent life settlement acts. (a) Any person engaged in the business of life settlements having knowledge or a reasonable belief that a fraudulent life settlement act is being, will be, or has been committed shall provide to the commissioner t…

[§431C-45] Immunity from liability. (a) No civil liability shall be imposed on and no cause of action shall arise from a person's furnishing information concerning suspected, anticipated, or completed fraudulent life settlement acts or suspected or completed fraudulent insurance …

[§431C-46] Confidentiality. (a) The documents and evidence provided pursuant to section 431C-45 or obtained by the commissioner in an investigation of suspected or actual fraudulent life settlement acts shall be privileged and confidential and shall not be a public record and sha…

[§431C-47] Other law enforcement or regulatory authority. This chapter shall not:

[§431C-48] Life settlement anti-fraud initiatives. (a) Providers and brokers shall have in place anti-fraud initiatives reasonably calculated to detect, prosecute, and prevent fraudulent life settlement acts. At the discretion of the commissioner, the commissioner may order, or a…

[§431C-49] Injunctions; civil remedies; cease and desist. (a) In addition to the penalties and other enforcement provisions of this chapter, if any person violates this chapter or any rule implementing this chapter, the commissioner may seek an injunction in a court of competent …

[§431C-5] Contract requirements. (a) No person may use any form of life settlement contract in this State unless it has been filed with and approved, if required, by the commissioner in a manner that conforms with the filing procedures and any time restrictions or deeming provisi…

[§431C-50] Penalties. (a) The commissioner may levy a civil penalty not exceeding $10,000 and the amount of the claim for each violation upon any person, including those persons and their employees licensed pursuant to this chapter, who is found to have committed a fraudulent lif…

[§431C-51] Unfair trade practices. A violation of this chapter shall be considered an unfair trade practice pursuant to section 480-2 and subject to the penalties under chapter 480. [L 2012, c 256, pt of §1]

[§431C-52] Conflict of laws. (a) If there is more than one owner of a single policy, and the owners are residents of different states, the life settlement contract shall be governed by the law of the state in which the owner having the largest percentage ownership resides or, if …

[§431C-53] Authority to adopt rules. The commissioner may adopt rules to implement this chapter pursuant to chapter 91. [L 2012, c 256, pt of §1]

[§431C-6] Reporting requirements and privacy. (a) For any policy settled within five years of policy issuance, each provider shall file with the commissioner on or before March 1 of each year an annual statement containing the information as the commissioner may prescribe by rule…