California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 12.9 - Life Settlements › Section 2548.7 - Revocation of License; Denial of Application

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Commissioner shall have the right to suspend or revoke
					 a license of any provider or broker, or deny a life settlement license
					 application if the Commissioner finds that:
(a) the licensee or applicant has knowingly
				  or willingly made any material misrepresentation in the application for a
				  license;
(b) the licensee or
				  applicant has been convicted of a felony or misdemeanor under the laws of the
				  United States or any state therein, or a public offense having as one of its
				  necessary elements a fraudulent act, or an act of dishonesty in acceptance,
				  custody, or payment of money or property;
(c) the licensee or applicant has violated
				  any provisions of title 10 of the California Code of Regulations, or the
				  California Insurance Code, including but not limited to, failure to remit on a
				  timely basis license renewal fees, or failure to file a complete annual
				  statement;
(d) the licensee or
				  applicant has permitted anyone in his or her employ to violate title 10 of the
				  California Code of Regulations or the California Insurance Code;
(e) the licensee or applicant has shown
				  incompetency or untrustworthiness in the conduct of any business, or has by
				  commission of a wrongful act or practice in the course of any business exposed
				  the public or those dealing with him to the danger of loss;
(f) the licensee or applicant has engaged in
				  a fraudulent life settlement act or practice within the meaning of subdivision
				  (g) of section
				  10113.1 of
				  the Insurance Code or has conducted any business in a dishonest
				  manner;
(g) the licensee or
				  applicant has knowingly misrepresented the terms or effect of a life settlement
				  contract;
(h) the licensee or
				  applicant has been refused a professional, occupational, or vocational license,
				  or had such license suspended or revoked by any licensing authority for the
				  reasons that should preclude the granting of the license applied for;
(i) the licensee no longer meets the
				  qualification for a license to transact life settlement business;
(j) the licensee or applicant transacts life
				  settlement business with an unlicensed company or individual when a license is
				  required;
(k) the licensee or
				  applicant has aided or abetted any person in the act or omission which would
				  constitute grounds for the suspension, revocation or refusal of a license
				  issued by the Commissioner to the person aided or abetted;
(l) the provider or applicant has failed to
				  honor contractual obligations set out in a life settlement contract;
(m) the provider has failed to set up an
				  escrow account pursuant to section
				  2548.6 of these regulations;
				  or,
(n) it is otherwise contrary to
				  the interest of the public to license the applicant or continue licensing the
				  licensee.
1. New
					 section filed 12-22-2006; operative 1-21-2007 (Register 2006, No.
					 51).
2. Repealer and new section filed 7-29-2010 as an emergency;
					 operative 7-29-2010. Emergency regulation shall remain in effect, not to be
					 repealed by the Office of Administrative Law, unless repealed by the Department
					 of Insurance pursuant to Insurance Code section
					 10113.35
					 (Register 2010, No. 31).
3. Change without regulatory effect
					 amending NOTE filed 1-24-2012 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2012, No. 4).
4. Renumbering of former section
					 2548.7 to new section
					 2548.9 and new section
					 2548.7 filed 11-25-2014; operative
					 1-1-2015 (Register 2014, No. 48).
Note: Authority cited: Section
						10113.35,
						Insurance Code; CalFarm Ins. Co. v. Deukmejian, 48 Cal.3d 805 (1989); 20th
						Century Ins. Co. v. Garamendi, 8 Cal.4th 216 (1994). Reference: Sections
						10113.2 and
						10113.3,
						Insurance Code.