[§431E-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 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 licensed
as a nonresident producer in this State shall be deemed to meet the licensing
requirements of this section and shall be permitted to operate as a broker.



(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, 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 may be renewed every year on
their anniversary date 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, stockholder, or partner thereof who may
materially influence the applicant's conduct meets the standards under
subsection (j).



(i)  A 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.



(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 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 431E-48.



(k)  The commissioner shall not issue any
license to a nonresident applicant unless a written designation of an agent for
service of process is filed and maintained with the commissioner or unless the
applicant has filed with the commissioner the applicant's written irrevocable
consent that any action against the applicant may be commenced against the
applicant by service of process on the commissioner.



(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.



(p)  An individual licensed as a broker shall
complete on a biennial basis fifteen hours of training related to life
settlements and life settlement transactions, as required by the commissioner;
provided that a life insurance producer who is operating as a broker pursuant
to this section shall not be subject to the requirements of this subsection. 
Any person failing to meet the requirements of this subsection shall be subject
to the penalties imposed by the commissioner. [L 2008, c 177, pt of §1]