Tenn. Comp. R. & Regs. 0780-01-71-.03

Current through December 10, 2024

Section 0780-01-71-.03 - LICENSE REQUIREMENTS

(1) In addition to the information required in T.C.A. § 56-50-103 and in this rule, the commissioner may ask for other information necessary to determine whether the applicant for a license as a life settlement provider, life settlement broker or life settlement representative complies with the requirements of T.C.A. § 56-50-I03.

(2) The application shall be accompanied by the appropriate license fee. The license may be renewed yearly by payment of the appropriate license renewal fee and a current copy of a letter or certificate of good standing obtained from the filing officer of the applicant's state of domicile. If a life settlement provider, life settlement broker or life settlement representative fails to pay the renewal fee within the time prescribed, or a life settlement provider fails to submit the reports required by T.C.A. § 56-50-106, such nonpayment or failure to submit the required reports shall result in lapse of the license.

(3) If at the time of renewal, lapse, or action by the commissioner pursuant to T.C.A. § 56-50-104, a life settlement provider has life settlements where the insured has not died, it shall do one of the following (the commissioner may specify which course of action is required hereunder in connection with an action by the commissioner pursuant to T.C.A. § 56-50-104):

(a) Renew or maintain a current licensed status until the earlier of the following events:

1. The date the life settlement provider properly assigns, sells or otherwise transfers the life settlements where the insured has not died; or

2. The date that the last insured covered by a life settlement transaction has died.

(b) Appoint, in writing, either the life settlement provider that entered into the life settlement contract, the life settlement broker who received commissions from the life settlement, if applicable, or any other life settlement provider or life settlement broker licensed in this state to make all inquiries to the insured, or the insured's designee, regarding health status of the insured or any other matters.

(4) Applicants for life settlement provider and life settlement broker licenses shall submit:

(a)

1. An audited financial statement with the life settlement provider application;

2. An attested financial statement with the life settlement broker application;

(b) A list of all life settlement contract transactions previously conducted where the owner and/or insured is or was then a resident of this state;

(c) For each life settlement contract transaction reported under subparagraph (4)(b), a report shall be made including the following information:

1. Date of life settlement contract;

2. Owner's relationship to the insured;

3. Mean life expectancy of the insured at time of contract in months;

4. Face amount of policy settled;

5. Net death benefit settled;

6. Net amount paid to owner;

7. Amount of fee or commission paid to life settlement representative(s) and life settlement broker (if life settlement broker was involved), if applicant is applying for a life settlement provider license;

8. Amount of fee or commission paid to any other person involved in the life settlement, as well as name and address of the recipients;

9. Statement of whether the insured is living or deceased, and date of death if applicable;

10. Name and address of each life settlement broker through whom the applicant purchased a policy from an owner who resided in this state at the time of contract, if applicant is applying for a life settlement provider license; and

11. Name and address of the life settlement provider, if the applicant is applying for a life settlement broker license.

(5) The license issued to a life settlement provider, life settlement broker or life settlement representative shall be a limited license that allows it to operate only within the scope of its license.

Tenn. Comp. R. & Regs. 0780-01-71-.03

Original rule filed February 7, 2003; effective April 23, 2003.

Authority: T.C.A. §§ 56-50-103 and 56-50-110.