[§431E-3]  Licensing requirements.  (a) No person, wherever located, shall act as a provider or broker with an ownerwho is a resident of this State, without first having obtained a license fromthe commissioner. 

(b)  Application for a provider or brokerlicense shall be made to the commissioner by the applicant on a form prescribedby the commissioner, and the application shall be accompanied by a fee in theamount provided by section 431:7-101.

(c)  A life insurance producer who has beenduly licensed as a resident insurance producer with a life line of authority inthis State or the producer's home state for at least one year and is licensedas a nonresident producer in this State shall be deemed to meet the licensingrequirements of this section and shall be permitted to operate as a broker.

(d)  Not later than thirty days from the firstday of operating as a broker, the life insurance producer shall notify thecommissioner that the life insurance producer is acting as a broker on a formprescribed by the commissioner, and shall pay a fee in the amount provided bysection 431:7-101.  Notification shall include an acknowledgment by the lifeinsurance producer that the life insurance producer will operate as a broker inaccordance with this chapter.

(e)  The insurer that issued the policy that isthe subject of a life settlement contract shall not be responsible for any actor omission of a broker, provider, or purchaser, arising out of or inconnection with the life settlement transaction, unless the insurer receivescompensation 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 nationallyrecognized accreditation agency, who is retained to represent the owner, andwhose compensation is not paid directly or indirectly by the provider orpurchaser, may negotiate life settlement contracts on behalf of the owner withoutobtaining a license as a broker.

(g)  Licenses may be renewed every year ontheir anniversary date upon payment of fees in the amounts required undersection 431:7-101.  Failure to pay the fees within the terms prescribed shallresult in the automatic inactivation of the license.

(h)  The applicant shall provide suchinformation as the commissioner may require on forms prepared by thecommissioner.  The commissioner shall have authority, at any time, to requiresuch applicant to fully disclose the identity of its stockholders, other thanstockholders owning fewer than ten per cent of the shares of an applicant whoseshares are publicly traded, and the identity of its partners, officers, andemployees.  The commissioner may, in the exercise of the commissioner's solediscretion, refuse to issue such a license in the name of any person if notsatisfied that any officer, employee, stockholder, or partner thereof who maymaterially influence the applicant's conduct meets the standards undersubsection (j).

(i)  A license issued to a partnership,corporation, or other entity authorizes all members, officers, and designatedemployees to act as a licensee under the license, if those persons are named inthe application and any supplements to the application.

(j)  Upon the filing of an application and thepayment of the license fee, the commissioner shall make an investigation ofeach applicant and may issue a license if the commissioner finds that theapplicant:

(1)  If a provider, has provided a detailed plan ofoperation;

(2)  Is competent and trustworthy and intends totransact its business in good faith;

(3)  Has a good business reputation and has hadexperience, training, or education so as to be qualified in the business forwhich the license is applied;

(4)  If a legal entity is formed or organized pursuantto the laws of this State or is a foreign legal entity authorized to transactbusiness in this State, or provides a certificate of good standing from thestate of its domicile; and

(5)  Has provided to the commissioner an anti-fraudplan that meets the requirements of section 431E-48.

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

(l)  Each licensee shall file with thecommissioner on or before the first day of March of each year an annualstatement containing the information as the commissioner by rule may prescribe.

(m)  A provider may not use any person toperform the functions of a broker unless the person holds a current, validlicense as a broker.

(n)  A broker may not use any person to performthe functions of a provider as defined in this chapter unless such person holdsa current, valid license as a provider, and as provided in this section.

(o)  A provider or broker shall provide to thecommissioner new or revised information about officers, ten per cent or morestockholders, partners, directors, members, or designated employees withinthirty days of the change.

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