1. (1)

   1. (a) A person may not, without first obtaining a license from the commissioner, operate in or from this state as:

      1. (i) a life settlement provider; or
      2. (ii) a life settlement producer.
   2. (b) A life settlement is included within the scope of the life insurance producer line of authority.

2. (2)

   1. (a) To obtain a license as a life settlement provider, an applicant shall:

      1. (i) comply with Section 31A-23a-117;
      2. (ii) file an application;
      3. (iii) pay the license fee; and
      4. (iv) provide evidence of financial responsibility.
   2. (b) If an applicant for a life settlement provider license complies with Subsection (2)(a) and Section 31A-23a-117, the commissioner shall investigate the applicant and issue a life settlement provider license if the commissioner finds that the applicant is competent and trustworthy to engage in the business of providing life settlements by experience, training, or education.

3. (3) In addition to the requirements in Sections 31A-23a-111, 31A-23a-112 and 31A-23a-113, the commissioner may refuse to issue, suspend, revoke, or refuse to renew the license of a life settlement provider or life settlement producer if the commissioner finds that:

   1. (a) a life settlement provider demonstrates a pattern of unreasonable payments to owners;

   2. (b) the applicant, the licensee, an officer, partner, or member, or key management personnel:

      1. (i) is, whether or not a judgment of conviction is entered by the court, found guilty of, or pleads guilty or nolo contendere to:

         1. (A) a felony; or
         2. (B) a misdemeanor involving fraud or moral turpitude;
      2. (ii) violates this chapter; or
      3. (iii) is subject to a final administrative action by another state or federal jurisdiction.
   3. (c) a life settlement provider enters into a life settlement not approved under this chapter;
   4. (d) a life settlement provider fails to honor obligations of a life settlement;

   5. (e) a life settlement provider assigns, transfers, or pledges a settled policy to a person other than:

      1. (i) a life settlement provider licensed under this chapter;
      2. (ii) a life settlement purchaser;
      3. (iii) an accredited investor as defined in Regulation D, Rule 501, 17 C.F.R. Sec. 230.501;
      4. (iv) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A;
      5. (v) a financing entity;
      6. (vi) a special purpose entity; or
      7. (vii) a related provider trust;
   6. (f) a life settlement provider fails to maintain a standard set forth in Subsection (2)(b);
   7. (g) an applicant or licensee has a material misrepresentation in an initial or renewal application for a license; or
   8. (h) the licensee engages in bad faith conduct with one or more owners.
4. (4) If the commissioner denies a license application or suspends, revokes, or refuses to renew the license of a life settlement provider or life settlement producer, the commissioner shall conduct an adjudicative proceeding under Title 63G, Chapter 4, Administrative Procedures Act.

Amended by Chapter 355, 2009 General Session