[§431E-48]  Life settlement anti-fraud
initiatives.  (a)  Providers and brokers shall have in place anti-fraud
initiatives reasonably calculated to detect, prosecute, and prevent fraudulent
life settlement acts.  At the discretion of the commissioner, the commissioner
may order, or a licensee may request and the commissioner may grant, such
modifications of the following required initiatives as necessary to ensure an
effective anti-fraud program.  The modifications may be more or less
restrictive than the required initiatives so long as the modifications may
reasonably be expected to accomplish the purpose of this section. Anti-fraud
initiatives shall include:



(1)  Fraud investigators, who may be provider or
broker employees or independent contractors; and



(2)  An anti-fraud plan that shall be submitted to the
commissioner.  The anti-fraud plan shall include but not be limited to:



(A)  A description of the procedures for
detecting and investigating possible fraudulent life settlement acts and
procedures for resolving material inconsistencies between medical records and
insurance applications;



(B)  A description of the procedures for
reporting possible fraudulent life settlement acts to the commissioner;



(C)  A description of the plan for anti-fraud
education and training of underwriters and other personnel; and



(D)  A description or chart outlining the
organizational arrangement of the anti-fraud personnel who are responsible for
the investigation and reporting of possible fraudulent life settlement acts and
investigating unresolved material inconsistencies between medical records and
insurance applications.



(b)  Anti-fraud plans submitted to the
commissioner shall be privileged and confidential and shall not be a public
record and shall not be subject to discovery or subpoena in a civil or criminal
action. [L 2008, c 177, pt of §1]