§ 10-7-603 — Licensing

Colorado § 10-7-603

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Life Insurance

Text

(1) (a) No person shall act on behalf of a viator or
otherwise negotiate, as defined in section 10-2-103 (7.9), viatical settlement
contracts between a viator and one or more viatical settlement providers unless
such person is a life insurance producer and has been licensed as a resident
producer with a life line of authority in his or her home state for at least one year.

(b) Not later than thirty days after the first day of negotiating a viatical
settlement on behalf of a viator, the life insurance producer shall notify the
commissioner of the activity on a form prescribed by the commissioner, and shall
pay an applicable fee to be determined by the commissioner by rule. Notification
shall include an acknowledgment by the life insurance producer that he or she will
operate in accordance with this part 6.

(c) Irrespective of the manner in which the life insurance producer is
compensated, a life insurance producer is deemed to represent only the viator, and
the insurer that issued the policy being viaticated shall not be responsible for any
act or omission of a life insurance producer or viatical settlement provider arising
out of or in connection with the viatical settlement transaction, unless the insurer
receives compensation from the viatical settlement provider or life insurance
producer for the viatical settlement contract.

(d) Notwithstanding paragraph (a) of this subsection (1), a person licensed as
an attorney, certified public accountant, or financial planner accredited by a
nationally recognized accreditation agency, who is retained to represent the viator
and whose compensation is not paid directly or indirectly by the viatical settlement
provider may negotiate viatical settlement contracts without having to obtain a
license as a life insurance producer.

(2) (a) No person may operate as a viatical settlement provider without first
obtaining a viatical settlement provider license from the commissioner.

(b) Application for a viatical settlement provider license shall be made to the
commissioner on a form prescribed by the commissioner, and an application shall
be accompanied by a fee to be determined by the commissioner by rule.

(c) A license may be renewed from year to year, on the anniversary date of
initial issuance, upon payment of an annual renewal fee as determined by the
commissioner by rule. Failure to pay the fee by the renewal date shall result in
expiration of the license.

(d) The applicant for a viatical settlement provider license shall provide
information on forms prescribed by the commissioner. The commissioner may, at
any time, require the applicant to fully disclose the identity of all stockholders,
partners, officers, members, and employees, except stockholders owning fewer
than five percent of the shares of an applicant whose shares are publicly traded,
and the commissioner may refuse to issue a license in the name of a legal entity if
not satisfied that any officer, employee, stockholder, partner, or member of the
entity who may materially influence the entity's conduct meets the standards of
this article.

(e) A license issued to a legal entity authorizes all partners, officers,
members, and designated employees to act as viatical settlement providers, as
applicable, under the license, if all of those persons are named in the application
and any supplements to the application.

(f) Upon the filing of an application and the payment of the license fee, the
commissioner shall make an investigation of each applicant and issue a license if
the commissioner finds that the applicant:

(I) Has provided a detailed plan of operation;

(II) Is competent and trustworthy and intends to act in good faith in the
capacity involved by the license for which an application was submitted;

(III) Has a good business reputation and has had experience, training, or
education so as to be qualified in the business for the license for which an
application was submitted;

(IV) If a legal entity, provides a certificate of good standing from the state of
its domicile; and

(V) Has provided an anti-fraud plan that meets the requirements of this part
6.

(g) The commissioner may not issue a license to a nonresident applicant
unless a written designation of an agent for service of process is filed and
maintained with the commissioner or unless the applicant has filed with the
commissioner the applicant's written, irrevocable consent that any action against
the applicant may be commenced against the applicant by service of process on the
commissioner.

(h) A viatical settlement provider shall provide to the commissioner new or
revised information about officers, stockholders who own ten percent or more of
the provider's stock, and all partners, directors, members, and designated
employees within thirty days after the change.

Legislative History

Source: L. 2005: Entire part added, p. 1298, � 1, effective January 1, 2006.