N.Y. ISC Law § 7803 — New York Code / Act ISC / Article 78 / Section 7803
License requirements for life settlement providers
Status: in_force

§ 7803. License requirements for life settlement providers. (a) No\nperson shall engage in the business of life settlements as a life\nsettlement provider in this state without having authority to do so by\nvirtue of a life settlement provider license issued and in force\npursuant to this article.\n  (b)(1) The superintendent may issue a life settlement provider license\nto any person who is deemed by the superintendent to be trustworthy and\ncompetent to act as a life settlement provider and who is otherwise\nqualified as required in this article and who has complied with the\nprerequisites prescribed in this article.\n  (2) Every license issued pursuant to this section shall expire on June\nthirtieth of odd-numbered years.\n  (c)(1) Application for a life settlement provider license shall be\nmade to the superintendent by the applicant on a form prescribed by the\nsuperintendent, and the application shall be accompanied by a fee in an\namount to be established by the superintendent.\n  (2) The applicant for a life settlement provider license shall:\n  (A) fully disclose the identity of all stockholders (except\nstockholders owning fewer than ten percent of the voting shares of a\nlife settlement provider whose shares are publicly traded), partners,\nofficers, members, directors and persons with a controlling interest.\nFor purposes of this section, "controlling interest" means a person who\ndirectly or indirectly, has the power to cause to be directed the\nmanagement, control or activities of such licensee;\n  (B) provide a detailed plan of operation;\n  (C) provide, if a legal entity, a certificate of good standing from\nthe state of its domicile;\n  (D) provide an anti-fraud plan that meets the requirements of article\nfour of this chapter;\n  (E) demonstrate financial accountability as evidenced by a bond or\nother method for financial accountability as determined by the\nsuperintendent pursuant to regulation; and\n  (F) provide any other information required by the superintendent.\n  (d) The superintendent may require an applicant for such license to\nsubmit a set of fingerprints. Such fingerprints shall be submitted to\nthe division of criminal justice services for a state criminal history\nrecord check, as defined in subdivision one of section three thousand\nthirty-five of the education law, and may be submitted to the federal\nbureau of investigation for a national criminal history record check.\nAll such criminal history records sent to the superintendent pursuant to\nthis paragraph shall be confidential pursuant to the applicable federal\nand state laws, rules and regulations, and shall not be published or in\nany way disclosed to persons other than the superintendent, unless\notherwise authorized by law. The superintendent shall provide such\napplicant with a copy of his or her criminal history record, if any,\ntogether with a copy of article twenty-three-A of the correction law,\nand inform such applicant of his or her right to seek correction of any\nincorrect information contained in such record pursuant to regulations\nand procedures established by the division of criminal justice services.\nAll determinations to grant or deny clearance for licensure pursuant to\nthis section shall be in accordance with subdivision sixteen of section\ntwo hundred ninety-six of the executive law and article twenty-three-A\nof the correction law. When the superintendent denies an application,\nwritten notice of such determination shall be given to the prospective\napplicant who shall be afforded notice and the right to be heard and\noffer proof in opposition to such determination.\n  (e)(1) As part of the application, the applicant shall submit a power\nof attorney designating the superintendent as agent for the purpose of\nreceiving service of legal documents or process.\n  (2) The power of attorney shall include the name and address of the\nofficer, agent, or other person to whom such legal documents or process\nshall be forwarded by the superintendent or his or her deputy on behalf\nof such life settlement provider.\n  (3) Service of legal documents or process upon a life settlement\nprovider pursuant to this subsection shall be made by serving the\nsuperintendent, any deputy superintendent or any salaried employee of\nthe department whom the superintendent designates for such purpose with\ntwo copies thereof and the payment of a fee of forty dollars. The\nsuperintendent shall forward a copy of such legal documents or process\nby registered or certified mail to the life settlement provider at the\naddress given in its written certificate of registration, and shall keep\na record of all legal documents or process so served. Service of legal\ndocuments or process so made shall be deemed made within the territorial\njurisdiction of any court in this state.\n  (f) The superintendent, in the exercise of the superintendent's\ndiscretion, may refuse to issue a life settlement provider license in\nthe name of any person if not satisfied that any officer, employee,\nstockholder, partner, director, member, agent, or responsible person\nthereof, who may materially influence the applicant's conduct, meets the\nstandards of this article.\n  (g) Every license issued pursuant to this section may be renewed for\nthe ensuing period of twenty-four months upon the filing of an\napplication in conformity with this section.\n  (h)(1) Before the renewal of any life settlement provider license\nshall be issued, an application for renewal of the license shall be made\nto the superintendent by the applicant on a form prescribed by the\nsuperintendent and containing such information as the superintendent may\nprescribe. The application shall be accompanied by a fee in an amount to\nbe established by the superintendent.\n  (2) If an application for a renewal license shall have been filed with\nthe superintendent before the expiration of the license, then the\nlicense sought to be renewed shall continue in full force and effect\neither until the issuance by the superintendent of the renewal license\napplied for or until five days after the superintendent shall have\nrefused to issue such renewal license and shall have given notice of\nsuch refusal to the applicant. Before refusing to renew any such\nlicense, the superintendent shall notify the applicant of the\nsuperintendent's intention to do so and shall give such applicant a\nhearing.\n  (3) An application for the renewal of a license shall be filed with\nthe superintendent not less than sixty days prior to the date the\nlicense expires or the applicant may be subject to a further fee for\nlate filing, as prescribed by the superintendent.\n  (i) A life settlement provider licensee shall provide to the\nsuperintendent new or revised information about stockholders (except\nstockholders owning fewer than ten percent of the voting shares of a\nlife settlement provider whose shares are publicly traded), partners,\nofficers, members, directors, designated employees or persons with a\ncontrolling interest within thirty days of the change.\n  (j) Every individual applicant for a license under this section shall\nbe eighteen years of age or older at the time of the issuance of such\nlicense.\n