§ 508E.3 — License requirements

Iowa § 508E.3

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 508E: VIATICAL SETTLEMENT CONTRACTS

Text

1. a. A person shall not operate as a viatical settlement provider or viatical settlement
broker without first obtaining a license from the commissioner of the state of residence of
the viator.
b. An insurer that issued a policy being viaticated shall not be responsible for any act or
omission of a viatical settlement broker or viatical settlement provider arising out of or in
connection with the viatical settlement transaction, unless the insurer receives compensation
for the placement of a viatical settlement contract from the viatical settlement provider or
viatical settlement broker in connection with the viatical settlement contract.
c. A person licensed as an attorney, certified public accountant, or financial planner
accredited by a nationally recognized accreditation agency who is retained to represent
a viator, whose compensation is not paid directly or indirectly by the viatical settlement
provider, may negotiate a viatical settlement contract on behalf of the viator without having
to obtain a license as a viatical settlement broker.
2. An application for a viatical settlement provider or viatical settlement broker license
shallbemadetothecommissionerbytheapplicantonaformprescribedbythecommissioner,
and the application shall be accompanied by a fee of not more than one hundred dollars as
provided by rules adopted by the commissioner.
3. A viatical settlement provider or viatical settlement broker license term shall be three
years and the license may be renewed upon payment of a renewal fee of not more than one
hundred dollars as provided by rules adopted by the commissioner. A failure to pay the fee
by the renewal date shall result in expiration of the license.
4. An applicant shall provide information on forms required by the commissioner and
shallmeetallrequirementspursuanttosection522B.5Aifrequiredbythecommissioner. The
commissioner shall have the authority to require an applicant to fully disclose the identity of
all stockholders, partners, officers, members, and employees. The commissioner may, in the
commissioner’s discretion, refuse to issue a license to such applicant if not satisfied that any
officer, employee, stockholder, partner, member, or employee who may materially influence
the applicant’s conduct meets the standards of this chapter.
5. Uponfilingofanapplicationandthepaymentofthelicensefee, thecommissionershall
investigate each applicant and issue a license if the commissioner finds that the applicant
complies with all of the following:
a. If a viatical settlement provider, has provided a detailed plan of operation.
b. Is competent and trustworthy and intends to act in good faith in the capacity involved
by the license applied for.
c. Has a good business reputation and has had experience, training, or education so as to
be qualified in the business for which the license is applied for.
d. If a viatical settlement provider or viatical settlement broker, has provided an antifraud
plan pursuant to section 508E.15, subsection 7.
6. The commissioner shall 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 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. If an applicant files such consent, service of process made on
the commissioner as the agent for service of process shall be made as provided in section
505.30.
7. A viatical settlement provider or viatical settlement broker shall provide to the
commissioner new or revised information about officers, ten-percent-or-more stockholders,
partners, directors, members, or designated employees within thirty days of the change.
8. An individual licensed as a viatical settlement broker shall complete on a triennial
7 VIATICAL SETTLEMENT CONTRACTS, §508E.5
basis running concurrent with the license term twenty credits of training related to viatical
settlements and viatical settlement transactions, as required by the commissioner. Any
person failing to meet the requirements of this subsection shall be subject to the penalties
imposed by the commissioner.
9. Fees collected pursuant to this section shall be deposited as provided in section 505.7.