2023 New York Laws › ISC - Insurance › Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries › 2137 - Life Settlement Brokers; Licensing.

§ 2137. Life settlement brokers; licensing. (a) The superintendent may
issue  a license to any individual, firm, association or corporation who
or that has complied with the requirements of this chapter,  authorizing
the licensee to act as a life settlement broker.
(b)  Any  such license issued to a firm or association shall authorize
only the members thereof, named in such license as sub-licensees, to act
individually as life settlement brokers thereunder, and any such license
issued to a corporation shall authorize only the officers and  directors
thereof,  who  are  named  in  such  license  as  sub-licensees,  to act
individually as life settlement brokers thereunder. Every  sub-licensee,
acting  as  a life settlement broker pursuant to such a license shall be
authorized so to act only in the name of the licensee.
(c) Every individual applicant for a license under  this  section  and
every  proposed  sub-licensee  shall be eighteen years of age or over at
the time of the issuance of such license.
(d)(1) Before any original life settlement broker's license is issued,
there  shall  be  on  file  in  the  office  of  the  superintendent  an
application  by  the  proposed  licensee  in  such  form  or  forms, and
supplements  thereto,  and  containing  information  the  superintendent
prescribes.  For each business entity, the sub-licensee or sub-licensees
named in  the  application  shall  be  designated  responsible  for  the
business   entity's   compliance   with  this  chapter  and  regulations
promulgated thereunder. The applicant shall fully disclose the  identity
of  all  stockholders (except stockholders owning fewer than ten percent
of the voting shares of  a  life  settlement  broker  whose  shares  are
publicly  traded),  partners,  officers,  members, directors and persons
with a controlling interest and the superintendent may, in the  exercise
of  the  superintendent's  discretion,  refuse to issue a license in the
name of a legal entity if not satisfied that any employee,  stockholder,
partner, officer, member, director or person with a controlling interest
thereof  who  may materially influence the applicant's conduct meets the
standards of this article and article  seventy-eight  of  this  chapter.
Thereafter,  the  applicant  and,  if  a  license  has  been issued, the
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 broker whose shares are  publicly
traded),  partners,  officers,  members,  directors  and  persons with a
controlling interest within thirty days of the change. 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.
(2)  The  superintendent  may  require  any  individual  named  in the
application for such license to submit a  set  of  fingerprints,  unless
such  applicant is licensed as an insurance producer with a life line of
authority. 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)  The superintendent shall, in order to determine the competency of
every individual applicant and of every proposed  sub-licensee  for  the
life  settlement  broker license, require such individual to submit to a
personal written examination and to pass the same to the satisfaction of
the superintendent. The examination shall be  held  at  such  times  and
places  as  the  superintendent shall from time to time determine. Every
individual applying to take any written examination shall, at  the  time
of applying therefor, pay to the superintendent or, at the discretion of
the  superintendent, directly to any organization that is under contract
to provide examination services, an examination fee of an amount that is
the actual documented administrative cost of conducting said  qualifying
examination  as  certified  by  the superintendent from time to time. An
examination  fee  represents  an  administrative  expense  and  is   not
refundable.   The  superintendent  may  accept,  in  lieu  of  any  such
examination, the result of any previous written  examination,  given  by
the   superintendent,   which   in  the  superintendent's  judgment,  is
equivalent to the examination for which it is substituted. No individual
shall be deemed qualified to take the examination unless he or she shall
have successfully  completed  a  course  or  courses,  approved  by  the
superintendent.
(f)(1)  No such written examination or prelicensing education shall be
required:
(A) of any insurance producer with a life line of  authority  licensed
in this state for at least one year;
(B)  in  the discretion of the superintendent, of any individual whose
license has been revoked or suspended;
(C) of any applicant who has passed the written examination  given  by
the  superintendent  for  a  life  settlement  broker's  license and was
licensed as such, or  of  an  applicant  who  was  licensed  as  a  life
settlement  broker  but  did  not pass such an examination; provided the
applicant applies within two years following the date of termination  of
the applicant's license;
(D)  in the discretion of the superintendent, as to all or any part of
the  written  examination  or  the  prerequisite  course  specified   in
subsection  (e) of this section, of any individual seeking to be named a
licensee or sub-licensee, upon whom has  been  conferred  the  Chartered
Life  Underwriter  (C.L.U.)  or  Chartered  Life  Underwriter  Associate
designation by The American College; or
(E) any individual seeking to be named a licensee or sub-licensee, who
is a nonresident and a life settlement broker or who is licensed  as  an
insurance  producer  with  a  life line of authority in the individual's
home  state  for  at  least  one  year;  provided,  however,  that   the
individual's home state grants nonresident licenses to residents of this
state on the same basis.
(2)  No  prelicensing  education  shall  be required of any individual
regularly  employed  by  a  life  settlement  provider,  life  insurance
company,  life  settlement  broker, or an insurance producer with a life
line of authority, for a period or periods aggregating not less than one
year, during the three years next preceding the date  of  entrance  into
the  service  of  the  armed  forces of the United States or immediately

following his or her discharge therefrom, in responsible duties relating
to the use of life insurance and annuity contracts  in  the  design  and
administration  of  plans  for  estate  conservation  and  distribution,
employee  benefits  and  business  continuation, and settlements of life
insurance and annuity  contracts;  provided  the  application  for  such
license  is  filed  within one year following the date of discharge, and
the applicant submits with the application a  statement  subscribed  and
affirmed  as  true  under  the  penalties of perjury by such employer or
employers stating facts which show compliance with this requirement.
(g) The  superintendent  may  refuse  to  issue  any  life  settlement
broker's  license  if,  in  the  superintendent's judgment, the proposed
licensee or any sub-licensee: is not trustworthy and competent to act as
a life settlement broker; has given  cause  for  license  revocation  or
suspension;  or  has  failed  to  comply  with  any prerequisite for the
issuance of such license.
(h)(1)  Every  license  issued  to  a  business  entity  pursuant   to
subsection  (a)  of  this  section  shall  expire  on  June thirtieth of
odd-numbered years.
(2) Every license issued pursuant to this section to an individual who
was born in an  odd-numbered  year  shall  expire  on  the  individual's
birthday  in  each  odd-numbered  year. Every license issued pursuant to
this section to an individual who was  born  in  an  even-numbered  year
shall  expire  on  the individual's birthday in each even-numbered year.
Every such license may be renewed for the ensuing period of  twenty-four
months  upon  the  filing  of  an  application  in  conformity with this
subsection.
(3) The license may be issued for all of such two-year terms, or  upon
application made during any such term, for the balance thereof.
(4)  Any  license  shall  be  considered  in  good standing within the
license term unless:
(A) revoked or  suspended  by  the  superintendent  pursuant  to  this
article; or
(B)  if at the expiration date of the license term, the licensee fails
to file a renewal application, provided the license was in good standing
during the term.
(5) Before the renewal of any life settlement broker's  license  shall
be issued, the licensee shall have:
(A)  filed  a completed renewal application in such form or forms, and
supplements  thereto,   and   containing   such   information   as   the
superintendent may prescribe; and
(B)  paid such fees as are prescribed by the superintendent; provided,
however, that such fee shall not exceed that which is required  for  the
licensing  or  renewal  for  an  insurance  producer with a life line of
authority.
(6) If an application for a renewal license shall have been filed with
the superintendent before the  expiration  of  such  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 and to each proposed sub-licensee. Before
refusing to renew any such license, except on the ground of  failure  to
pass   a  written  examination,  the  superintendent  shall  notify  the
applicant of the superintendent's intention to do so and shall give  the
applicant a hearing.
(7)(A)  The superintendent may, in issuing a renewal license, dispense
with the requirements  of  a  verified  application  by  any  individual
licensee or sub-licensee who, by reason of being engaged in any military

service  for  the  United States, is unable to make personal application
for the renewal license, upon the filing of an application on behalf  of
such  individual, in such form as the superintendent shall prescribe, by
a  person  who, in the person's judgment, has knowledge of the facts and
who makes affidavit showing such military service and the  inability  of
the life settlement broker to make personal application.
(B)  An  individual  licensee  or sub-licensee who is unable to comply
with license renewal procedures due to other extenuating  circumstances,
such  as  a  long-term  medical disability, may request a waiver of such
procedures, in such form as  the  superintendent  shall  prescribe.  The
licensee  or  sub-licensee  may also request a waiver of any examination
requirement or any other fine or sanction imposed for failure to  comply
with renewal procedures.
(8)  In  addition to any examination fee required by subsection (e) of
this section, there  shall  be  paid  to  the  superintendent  for  each
individual  license applicant and each proposed sub-licensee a licensing
or renewal fee to be determined by the superintendent; provided, however
that such fee shall not exceed that which is required for the  licensing
or renewal for an insurance producer with a life line of authority.
(9)  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 shall be subject to a further fee of
ten dollars for late filing.
(10) No license fee shall be required of any person who  served  as  a
member  of the armed forces of the United States at any time and who (A)
shall have  been  discharged  therefrom,  under  conditions  other  than
dishonorable,  or  (B) has a qualifying condition, as defined in section
one of the veterans' services law, and has received  a  discharge  other
than  bad  conduct  or  dishonorable  from  such  service,  or  (C) is a
discharged LGBT veteran, as defined in  section  one  of  the  veterans'
services  law,  and  has  received a discharge other than bad conduct or
dishonorable from such service, in a current licensing period,  for  the
duration of such period.
(11)  Except  where  a  corporation, association or firm licensed as a
life settlement broker is applying to add a sub-licensee, there shall be
no fee required for the issuance of an amended license.
(12) The license shall contain the licensee's name, address,  personal
identification  number,  the date of issuance, and any other information
the superintendent deems necessary. The  superintendent  may  issue  the
life  settlement broker's license in conjunction with any other license,
or its renewal, held by the applicant.
(i) If the superintendent deems it necessary, then the  superintendent
may  require  any  licensed  life  settlement  broker  to  submit  a new
application at any time.
(j) The  superintendent  may  issue  a  replacement  for  a  currently
in-force   license   that  has  been  lost  or  destroyed.  Before  such
replacement license shall be issued, there  shall  be  on  file  in  the
office  of the superintendent a written application for such replacement
license, affirming under penalty of perjury that  the  original  license
has been lost or destroyed, together with a fee of fifteen dollars.