§431C-3 Licensing requirements. (a) No person, wherever located, shall act as a provider or broker with an owner who is a resident of this State, without first having obtained a license from the commissioner.
(b) Application for a provider or broker license shall be made to the commissioner by the applicant on a form prescribed by the commissioner, and the application shall be accompanied by a fee in the amount provided by section 431:7-101.
(c) A person, wherever located, may act as a broker with an owner who is a resident of this State, if the person is a life insurance producer who has been duly licensed as a resident insurance producer with a life line of authority in this State or the producer's home state for at least one year and is issued a broker license in this State.
(d) Not later than thirty days from the first day of operating as a broker, the life insurance producer shall notify the commissioner that the life insurance producer is acting as a broker on a form prescribed by the commissioner, and shall pay a fee in the amount provided by section 431:7-101. Notification shall include an acknowledgment by the life insurance producer that the life insurance producer will operate as a broker in accordance with this chapter.
(e) The insurer that issued the policy that is the subject of a life settlement contract shall not be responsible for any act or omission of a broker, provider, or purchaser, arising out of or in connection with the life settlement transaction, unless the insurer receives compensation for the placement of a life settlement contract from the provider, purchaser, or broker in connection with the life settlement contract.
(f) A person licensed as an attorney, certified public accountant, or financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the owner in the type of practice customarily performed in the person's professional capacity, and whose compensation is not paid directly or indirectly by the provider or purchaser, may negotiate life settlement contracts on behalf of the owner without obtaining a license as a broker.
(g) Licenses are issued and renewed in accordance with article 9A of chapter 431 upon payment of fees in the amounts required under section 431:7-101. Failure to pay the fees within the terms prescribed shall result in the automatic inactivation of the license.
(h) The applicant shall provide such information as the commissioner may require on forms prepared by the commissioner. The commissioner shall have authority, at any time, to require such applicant to fully disclose the identity of its stockholders, other than stockholders owning fewer than ten per cent of the shares of an applicant whose shares are publicly traded, and the identity of its partners, officers, and employees. The commissioner may, in the exercise of the commissioner's sole discretion, refuse to issue such a license in the name of any person if not satisfied that any officer, employee, identified stockholder, or partner thereof who may materially influence the applicant's conduct meets the standards under subsection (j).
(i) A provider license issued to a partnership, corporation, or other entity authorizes all members, officers, and designated employees to act as a licensee under the license, if those persons are named in the application and any supplements to the application. A business entity licensed pursuant to this subsection shall designate an individual who is responsible for the actions of the entity and its agents. The designated individual shall be licensed pursuant to this chapter.
(j) Upon the filing of an application and the payment of the license fee, the commissioner shall make an investigation of each applicant and may issue a provider or a broker license if the commissioner finds that the applicant:
(1) If a provider, has provided a detailed plan of operation;
(2) Is competent and trustworthy and intends to transact its business in good faith;
(3) 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;
(4) If a legal entity, is formed or organized pursuant to the laws of this State or is a foreign legal entity authorized to transact business in this State, or provides a certificate of good standing from the state of its domicile; and
(5) Has provided to the commissioner an anti-fraud plan that meets the requirements of section 431C-48.
(k) Each licensed nonresident broker or provider shall appoint the commissioner as its agent to receive service of legal process issued against the broker or provider in this State upon causes of action arising within this State. Service upon the commissioner as agent shall constitute effective legal service upon the broker or provider. The appointment shall be irrevocable for as long as there could be any cause of action against the broker or provider arising out of the broker's or provider's insurance transactions in this State. Service of process on the commissioner shall be made in accordance with section 431:2-206.
(l) Each licensee shall file with the commissioner on or before the first day of March of each year an annual statement containing the information as the commissioner by rule may prescribe.
(m) A provider may not use any person to perform the functions of a broker unless the person holds a current, valid license as a broker.
(n) A broker may not use any person to perform the functions of a provider as defined in this chapter unless such person holds a current, valid license as a provider, and as provided in this section.
(o) A provider or broker shall provide to the commissioner new or revised information about officers, ten per cent or more stockholders, partners, directors, members, or designated employees within thirty days of the change. [L 2012, c 256, pt of §1]