A.Except as otherwise provided in this section, a person shall not act as a provider or broker with any owner who is a resident of this state unless the person obtains a certificate of authority or license pursuant to this section.
B.An applicant for a provider certificate of authority shall submit an application to the director on a form prescribed by the director. The application shall be accompanied by a fee in an amount established by the director.
C.The applicant for a provider certificate of authority shall provide all of the information required by the director. The director, at any time, may require an applicant to fully disclose the identity of its partners, officers, employees and stockholders except for stockholders owning less than ten percent of the shares of an applicant
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A. Except as otherwise provided in this section, a person shall not act as a provider or broker with any owner who is a resident of this state unless the person obtains a certificate of authority or license pursuant to this section.
B. An applicant for a provider certificate of authority shall submit an application to the director on a form prescribed by the director. The application shall be accompanied by a fee in an amount established by the director.
C. The applicant for a provider certificate of authority shall provide all of the information required by the director. The director, at any time, may require an applicant to fully disclose the identity of its partners, officers, employees and stockholders except for stockholders owning less than ten percent of the shares of an applicant whose shares are publicly traded. The director, at the director's sole discretion, may refuse to issue a certificate of authority in the name of any person if the director is not satisfied that any officer, employee, stockholder or partner who may materially influence the applicant's conduct meets the requirements of this chapter.
D. A provider certificate of authority issued to a partnership, corporation or other entity authorizes all members, officers and designated employees to act as a provider under the certificate of authority if those persons are named in the application and any supplements to the application.
E. The director shall require that:
1. A provider submit a detailed plan of operation.
2. If the applicant for a provider certificate of authority is a legal entity, it be formed or organized pursuant to the laws of this state or, if it is a foreign legal entity, it be authorized to transact business in this state or provide a certificate of good standing from the state of its domicile.
3. The applicant for a provider certificate of authority provide an antifraud plan that meets the requirements of section 20-3211 and that includes a description of:
(a) The procedures for detecting and investigating possible fraudulent acts and for resolving material inconsistencies between medical records and insurance applications.
(b) The procedures for reporting fraudulent insurance acts to the director.
(c) The plan for antifraud education and training of its underwriters and other personnel.
(d) A written description or organizational chart of the antifraud personnel who are responsible for the investigation and reporting of possible fraudulent insurance acts and the investigation of unresolved material inconsistencies between medical records and insurance applications.
F. A producer that is licensed in this state with a life line of authority shall:
1. Be deemed to meet the licensing requirements of this section and be permitted to operate as a broker.
2. Within the first thirty days of operating as a broker, notify the director, on a form prescribed by the director, that the producer is acting as a broker. Notification shall include an acknowledgement by the life insurance producer that the producer will operate as a broker pursuant to this chapter.
3. Pay any applicable fee as determined by the director.
G. A broker may renew a license by paying the renewal fee in an amount established by the director. The expiration date of the broker authority shall coincide with the expiration date of the life line of authority as set forth in section 20-289.
H. The director may not issue a license to any nonresident applicant unless a written designation of an agent in this state for service of process is filed and maintained with the director or unless the applicant has filed with the director the applicant's written irrevocable consent that any action against the applicant may be commenced against the applicant by service of process on the director.
I. A provider may not use any person to perform the function of a broker unless the person holds a valid license as a broker pursuant to this section.
J. A broker may not use any person to perform the functions of a provider unless the person holds a valid license as a provider pursuant to this section.
K. A provider or broker shall submit to the director any new or revised information concerning individuals required to be disclosed pursuant to subsection C of this section within thirty days of any change.
L. A person who is licensed as an attorney or a certified public accountant, who is retained to represent the owner and whose compensation is not paid directly or indirectly by the provider or purchaser may negotiate a life settlement contract on behalf of the owner without having to obtain a license as a broker.
M. The insurer that issued the policy and that is the subject of a life settlement contract is not responsible for any act or omission of a broker or provider or a purchaser arising out of or in connection with the life settlement transaction unless the insurer receives compensation for the placement of a life settlement contract from the provider, broker or purchaser in connection with the life settlement contract.