§ 7805 — License and registration revocation

New York § 7805

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 78: Life Settlements

Text

§ 7805. License and registration revocation. (a) The superintendent\nmay suspend, revoke or refuse to renew the license of any life\nsettlement provider or the registration of any life settlement\nintermediary, if, after notice and hearing, the superintendent\ndetermines that the life settlement provider or life settlement\nintermediary, or any officer, partner, member, or key management\npersonnel thereof, has:\n (1) violated any insurance laws or any regulation promulgated\nthereunder, any subpoena or order of the superintendent or of another\nstate's insurance commissioner, or any other law in the course of the\nlicensee's dealings in such capacity;\n (2) provided materially incorrect, materially misleading, materially\nincomplete or materially untrue information in the license or\nregistration application;\n (3) obtained or attempted to obtain a license or registration through\nmisrepresentation or fraud;\n (4)(A) used fraudulent, coercive or dishonest practices;\n (B) demonstrated incompetence;\n (C) demonstrated untrustworthiness; or\n (D) demonstrated financial irresponsibility in the conduct of business\nin this state or elsewhere;\n (5) improperly withheld, misappropriated or converted any monies or\nproperties received in the course of business in this state or\nelsewhere;\n (6) intentionally misrepresented the terms of any insurance contract\nor life settlement contract or any application therefor;\n (7) been convicted of a felony, or has been guilty of fraudulent or\ndishonest practices or other misconduct or malfeasance;\n (8) admitted or been found to have committed any insurance unfair\ntrade practice or fraud;\n (9) had a life settlement provider license or life settlement\nintermediary registration, or an equivalent denied, suspended or revoked\nin any other state, province, district or territory;\n (10) forged another person's name to an application for insurance or\nlife settlement contract or to any document related to an insurance or\nlife settlement transaction;\n (11) knowingly conducted the business of life settlements with a\nperson who is not licensed or registered unless such person is not\nrequired to be licensed or registered;\n (12) demonstrated a pattern of unreasonable payments to owners or\ninsureds;\n (13) failed to honor contractual obligations set out in a life\nsettlement contract;\n (14) sold, assigned, pledged or otherwise transferred the ownership of\na settled policy to a person other than as provided in this article; or\n (15) failed to protect the privacy of the insured or owner or other\nperson for whom the licensee or registrant was required to provide\nprotection pursuant to this article.\n (b)(1) Before the superintendent suspends, revokes or refuses to renew\nthe license of a life settlement provider or the registration of a life\nsettlement intermediary, the superintendent shall give notice to the\nlicensee or registrant and shall hold, or cause to be held, a hearing\nnot less than ten days after the giving of such notice, except that\nwhere, in the judgment of the superintendent, the public health, safety\nor welfare so requires, a license or registration may be suspended for\nup to ten days prior to a hearing.\n (2) In lieu of revoking or suspending the license or registration for\nany of the causes enumerated in subsection (a) of this section, the\nsuperintendent may impose a civil penalty not to exceed ten thousand\ndollars for each violation.\n (3) Upon the failure of such licensee or registrant to pay such\npenalty ordered pursuant to paragraph two of this subsection within\ntwenty days after the mailing of such order, postage prepaid,\nregistered, and addressed to the last known place of business of such\nlicensee or registrant, unless such order is stayed by a court of\ncompetent jurisdiction, the superintendent may revoke the license of\nsuch licensee or the registration of such registrant, or may suspend the\nsame for such period as the superintendent determines.\n