2023 New York Laws › ISC - Insurance › Article 78 - Life Settlements › 7804 - Registration Requirements for Life Settlement Intermediaries.

§  7804. Registration requirements for life settlement intermediaries.
(a) No person shall act as a life settlement intermediary in this  state
without having authority to do so by virtue of a registration issued and
in force pursuant to this article.
(b)(1)  The  superintendent  may  issue a life settlement intermediary
registration to any person who:
(A) is deemed by the superintendent to be trustworthy and competent to
act as a life settlement intermediary;
(B) is otherwise qualified as required in this article; and
(C) has complied with the prerequisites prescribed in this article.
(2) Every registration issued pursuant to this section shall expire on
June thirtieth of odd-numbered years.
(c)(1) Application for a  life  settlement  intermediary  registration
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 established by the superintendent.
(2)  The  applicant  for  a  life settlement intermediary registration
shall provide:
(A) the state in which the life settlement intermediary  is  domiciled
or resident;
(B)   the   principal   place  of  business  of  the  life  settlement
intermediary;
(C) all other states in which  the  life  settlement  intermediary  is
doing or intends to do business;
(D) a detailed plan of operation; and
(E)  the  identities  of  the  life  settlement intermediary executive
officer or officers directly responsible  for  such  business,  and  all
stockholders  (except  stockholders owning fewer than ten percent of the
voting shares  of  a  life  settlement  intermediary  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
registrant.
(d)  Each  life  settlement  intermediary that is required to register
pursuant to this section shall also furnish such information as  may  be
required by the superintendent to:
(1)  verify  that  the  person or persons qualify as a life settlement
intermediary; and
(2) determine compliance with any applicable state law.
(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 may require an applicant for such registration
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 registration 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.
(g)  The  superintendent,  in  the  exercise  of  the superintendent's
discretion,  may  refuse  to  issue  a  life   settlement   intermediary
registration  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.
(h) Every registration 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.
(i)(1)  Before  the  renewal  of  any  life  settlement   intermediary
registration  shall  be  issued,  an  application  for  renewal  of  the
registration 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,  and  the  application  shall  be
accompanied  by  a  fee  in  an  amount  to  be   established   by   the
superintendent.
(2)  If  an application for renewal registration shall have been filed
with the superintendent before the expiration of the  registration,  the
registration  sought  to  be  renewed  shall  continue in full force and
effect either until the issuance by the superintendent  of  the  renewal
registration  applied  for  or  until five days after the superintendent
shall have refused to issue such renewal  registration  and  shall  have
given  notice of such refusal to the applicant. Before refusing to renew
any such registration, 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 registration  shall  be  filed
with  the  superintendent not less than sixty days prior to the date the
registration expires or the applicant may be subject to  a  further  fee
for late filing, as prescribed by the superintendent.
(j) A life settlement intermediary shall, as to any subsequent changes
in  any  of  the  items set forth in paragraph two of subsection (c) and
paragraph  one  of  subsection  (d)  of   this   section,   notify   the
superintendent in writing within thirty days of any such change.
(k)  Every  individual  applicant  for registration under this section
shall be eighteen years of age or older at the time of the  issuance  of
such registration.