Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-93 - LIFE SETTLEMENTS REGULATION › Rule 120-2-93-.04 - License; Application and Issuance

Current through Rules and Regulations filed through June 27, 2024
(1) Except as provided for in O.C.G.A. §
									33-59-2(18), it
				is unlawful for any person to enter into a life settlement contract with an
				owner of a policy or to hold oneself out as a provider in this state without a
				valid provider license issued by the Commissioner of Insurance. To qualify for
				and hold a license as a provider in this state, a provider must otherwise be in
				compliance with Article 3 of Chapter 59 of Title 33 of the Official Code of
				Georgia Annotated and this Regulation.
(2) The provider shall file with the
				Commissioner of Insurance an application for a license upon a form to be
				furnished by the Commissioner of Insurance, which application should include or
				have attached the following information and documents and any other materials
				the Commissioner of Insurance deems necessary to adequately assess the merits
				of the application:
(a) All basic
				organizational documents of the provider, the articles of incorporation,
				articles of association, partnership agreement, trade name certificate, trust
				agreement, shareholder agreement, and other applicable documents, and all
				amendments to those documents;
(b)
				The bylaws, rules and regulations or similar documents regulating the conduct
				or the internal affairs of the provider and a detailed plan of
				operation;
(c) The names,
				addresses, official positions, and professional qualifications of the
				individuals who are responsible for the conduct of the affairs of the provider,
				including all stockholders, partners, officers, members, and employees, with
				exception to those owning fewer than ten percent (10%) of the
				provider;
(d) Financial statements
				certified by the President, Chief Financial Officer or Treasurer or audited
				reports for the two most recent years, or such other information as the
				Commissioner may require in order, to review the current financial condition of
				the provider. The provider must prove that it possesses and maintains a minimum
				net worth of $300,000; however, the Commissioner may, in his or her discretion,
				require a higher net worth if he or she deems such higher net worth necessary
				for the protection of the public. If the Provider is an entity, the minimum net
				worth must be on the balance sheet of the entity holding the license; letters
				of credit, backstop guarantees and special corporate structures will not be
				taken into consideration by the Commissioner in determining the net worth
				requirement;
(e) Fees as provided
				in O.C.G.A. §§
										33-59-3(b)  and
				33-8-1;
(f) A copy of its antifraud plan which shall
				include but not be limited to the information required under O.C.G.A. §
										33-59-14;
(g) A copy of its life settlements contract
				and disclosure statement, containing the provisions stipulated at O.C.G.A.
				§
										33-59-9, for the Commissioner's
				review and approval in accordance with O.C.G.A. §
										33-59-5; and
(h) A statement that stipulates that its
				advertisements shall not be misleading, in fact or by implication, shall not
				suggest that the purchase of a policy is for the sole purpose of life settling
				the policy, and shall not use the words "free," "no cost," or words of similar
				meaning in order to entice an individual to purchase a policy for subsequent
				life settlement.