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  • PART I ADMINISTRATION OF THE GOVERNMENT
  • TITLE XXII CORPORATIONS
  • CHAPTER 175 INSURANCE
  • Section 214 Suspension, revocation or refusal of renewal of life settlement provider or life settlement broker license

[Text of section applicable as provided by 2012, 434, Sec. 4.]

Section 214. (a) The commissioner may suspend, revoke or refuse to renew the license of a licensee if the commissioner finds that:

(1) there was a material misrepresentation in the application for the license;

(2) the licensee or any officer, partner, member or director has been convicted or determined by a regulator to have committed a fraudulent or dishonest practice, is subject to a final administrative action or is otherwise shown to be untrustworthy or incompetent to act as a licensee;

(3) if a life settlement provider, the licensee demonstrates a pattern of unreasonably withholding payments to policy owners;

(4) the licensee no longer meets the requirements for initial licensure;

(5) the licensee or any officer, partner, member or director has been convicted of a felony or a misdemeanor of which criminal fraud is an element, or the licensee has pleaded guilty or had the case continued without a finding with respect to a felony or a misdemeanor of which criminal fraud or moral turpitude is an element, regardless of whether a judgment of conviction has been entered by the court;

(6) the life settlement provider has entered into a life settlement contract using a form that has not been approved under sections 213 to 223E, inclusive;

(7) the life settlement provider has failed to honor contractual obligations set out in a life settlement contract;

(8) the life settlement provider has assigned, transferred or pledged a settled policy to a person other than a life settlement provider licensed under this chapter, a purchaser, an accredited investor or qualified institutional buyer as defined respectively in Regulation D of Rule 501 of the federal Securities Act of 1933, 17 C.F.R. section 230.501, as amended, or rule 144A of the federal Securities Act of 1933, 17 C.F.R. section 230.144A, as amended, a financing entity, a special purpose entity or a related provider trust; or

(9) the licensee or any officer, partner, member or key management personnel has violated sections 213 to 223E, inclusive.

(b) Before the commissioner denies a license application or suspends, revokes or refuses to renew the license of a licensee under sections 213 to 223E, inclusive, the commissioner shall conduct a hearing in accordance with chapter 30A.