2023 New York Laws › ISC - Insurance › Article 78 - Life Settlements › 7803 - License Requirements for Life Settlement Providers.

§  7803.  License  requirements  for life settlement providers. (a) No
person shall engage in the  business  of  life  settlements  as  a  life
settlement  provider  in this state without having authority to do so by
virtue of a  life  settlement  provider  license  issued  and  in  force
pursuant to this article.
(b)(1) The superintendent may issue a life settlement provider license
to  any person who is deemed by the superintendent to be trustworthy and
competent to act as a life settlement  provider  and  who  is  otherwise
qualified  as  required  in  this  article and who has complied with the
prerequisites prescribed in this article.
(2) Every license issued pursuant to this section shall expire on June
thirtieth of odd-numbered years.
(c)(1) Application for a life settlement  provider  license  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 to be established by the superintendent.
(2) The applicant for a life settlement provider license shall:
(A)   fully   disclose   the  identity  of  all  stockholders  (except
stockholders owning fewer than ten percent of the  voting  shares  of  a
life  settlement  provider  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 licensee;
(B) provide a detailed plan of operation;
(C)  provide,  if  a legal entity, a certificate of good standing from
the state of its domicile;
(D) provide an anti-fraud plan that meets the requirements of  article
four of this chapter;
(E)  demonstrate  financial  accountability  as evidenced by a bond or
other  method  for  financial  accountability  as  determined   by   the
superintendent pursuant to regulation; and
(F) provide any other information required by the superintendent.
(d)  The  superintendent  may require an applicant for such license 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 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)(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,  in  the  exercise  of  the  superintendent's
discretion,  may  refuse  to issue a life settlement provider license 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.
(g) Every license 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.
(h)(1) Before the renewal of  any  life  settlement  provider  license
shall be issued, an application for renewal of the license 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. The application shall be accompanied by a fee in an amount to
be established by the superintendent.
(2) If an application for a renewal license shall have been filed with
the superintendent before  the  expiration  of  the  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.  Before  refusing  to  renew any such
license,  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 license shall  be  filed  with
the  superintendent  not  less  than  sixty  days  prior to the date the
license expires or the applicant may be subject to  a  further  fee  for
late filing, as prescribed by the superintendent.
(i)   A  life  settlement  provider  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 provider whose shares are  publicly  traded),  partners,
officers,  members,  directors,  designated  employees or persons with a
controlling interest within thirty days of the change.
(j) Every individual applicant for a license under this section  shall
be  eighteen  years  of age or older at the time of the issuance of such
license.