Tenn. Comp. R. & Regs. 0780-01-71-.06

Current through June 26, 2024

Section 0780-01-71-.06 - REPORTING REQUIREMENTS

(1) On March 1 of each calendar year, each life settlement provider conducting business in this state shall make a report to the commissioner of all life settlement transactions where the owner and/or the insured is a resident of this state containing the following information for the previous calendar year:

(a) For each life settlement contract transaction participated in during the reporting period:

1. Date of the life settlement contract;

2. Owner's and/or insured's state of residence at the time of the contract, if both are not residents of this state;

3. Owner's relationship to the insured;

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

5. Face amount of policy settled;

6. Net death benefit settled;

7. Net amount paid to owner;

8. Amount of fee or commission paid to life settlement representative(s) and life settlement broker (if life settlement broker was involved):

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

10. Source of policy (B-Broker; D-Direct Purchase; SM-Secondary Market);

11. Type of coverage (I-Individual or G-Group) and name of insurance company issuing the policy;

12. Period of time the policy had been in effect at the time of life settlement;

13. Disease classification (if applicable); and

14. Type of funding (I- Institutional; S - Individual Investor).

(b) For life settlements where death has occurred during the reporting period:

1. Date of life settlement contract;

2. Owner's and/or insured's state of residence at the time of the contract, if both were not residents of this state;

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

4. Net death benefit collected;

5. If no death benefit collected, reason for no collection;

6. Total premiums paid to maintain the policy (WP-Waiver of Premium; NA-Not Applicable);

7. Net amount paid to owner;

8. Cause of death;

9. Date of death;

10. Amount of time between date of contract and date of death in months; and

11. Difference between the number of months that passed between the date of contract and the date of death and the mean life expectancy in months as determined by the reporting company;

(c) Name and address of each life settlement broker through whom the reporting company purchased a policy from an owner who resided in this state at the time of contract;

(d) Number of policies reviewed and rejected;

(e) Number of policies purchased in the secondary market as a percentage of total policies purchased; and

(f) Number of policies settled in this state as a percentage of the total number of policies purchased in all states.

(2) On March 1 of each calendar year, each life settlement broker in this state shall make a report to the commissioner of all life settlement transactions where the owner and/or the insured is a resident of this state containing the following information for the previous calendar year:

(a) Date of the life settlement contract;

(b) Owner's and/or insured's state of residence at the time of contract, if both are not residents of this state;

(c) Owner's relationship to insured;

(d) Face amount of policy settled;

(e) Net death benefits settled;

(f) Net amount paid to owner;

(g) Itemization and total of fees or commissions paid to life settlement broker and life settlement representatives;

(h) Relationship of life settlement broker and/or life settlement representative to the owner and/or insured prior to the life settlement contract transaction;

(i) Name and address of the life settlement provider.

Tenn. Comp. R. & Regs. 0780-01-71-.06

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

Authority: T.C.A. §§ 56-50-106 and 56-50-110.