A. No person shall act as a viatical settlement provider with a resident ofthis Commonwealth without first obtaining a license from the Commission.
1. A person seeking to be licensed as a viatical settlement provider in thisCommonwealth shall apply for such license in a form acceptable to theCommission and shall pay to the Commission a nonrefundable application fee inan amount prescribed by the Commission. On and after July 1, 2003, such feeshall be not less than $300 and not more than $1,500. The application feerequired by this subdivision shall be collected by the Commission, paiddirectly into the state treasury, and credited to the "Bureau of InsuranceSpecial Fund - State Corporation Commission" for the maintenance of theBureau of Insurance as provided in subsection B of § 38.2-400.
2. A license issued anytime prior to July 1, 2004, shall expire on June 30,2004, unless renewed as set forth herein.
3. On or before March 1 of each year commencing March 1, 2004, a licensedviatical settlement provider shall remit a renewal application form andnonrefundable renewal fee in the form and amount prescribed by theCommission. Such fee shall be not less than $300 and not more than $1,500.The renewal fee required by this subdivision shall be collected by theCommission and paid directly into the state treasury and credited to the"Bureau of Insurance Special Fund - State Corporation Commission" for themaintenance of the Bureau of Insurance as provided in subsection B of §38.2-400.
4. A viatical settlement provider's license expiring on June 30 may berenewed on July 1 for a one-year period ending on June 30 of the followingyear if the required renewal application and a nonrefundable renewal fee havebeen received and the license is not terminated, suspended, or revoked at thetime of renewal. The renewal fee required by this subdivision shall becollected by the Commission and paid directly into the state treasury andcredited to the "Bureau of Insurance Special Fund - State CorporationCommission" for the maintenance of the Bureau of Insurance as provided insubsection B of § 38.2-400.
B. The applicant shall provide information on forms required by theCommission. The Commission shall have authority, at any time, to require theapplicant to disclose fully the identity of all stockholders, partners,officers, members, and employees, and the Commission may, in the exercise ofthe Commission's discretion, refuse to issue a license in the name of a legalentity if not satisfied that any officer, employee, stockholder, partner, ormember thereof who may materially influence the applicant's conduct meets thestandards of this chapter.
C. A license issued to a legal entity authorizes all partners, officers,members, and designated employees to act as the viatical settlement providerunder the license, and all those persons shall be named in the applicationand any application supplements.
D. Upon the filing of an application and the payment of the nonrefundableapplication fee, the Commission shall make such investigation of eachapplicant as the Commission may determine to be appropriate and issue alicense if it finds that the applicant: (i) has provided a detailed plan ofoperation; (ii) is competent and trustworthy; (iii) indicates its intentionto act in good faith within the confines of the license; (iv) has a goodbusiness reputation; (v) if an individual, has had experience, training oreducation that qualifies him for licensure; (vi) if a resident partnership,limited liability company, or corporation, has recorded the existence of thepartnership, limited liability company, or corporation pursuant to law; (vii)if a corporation, has specific authority to act as a viatical settlementprovider in its charter; (viii) if a nonresident partnership, limitedliability company, or corporation, has furnished proof of its authority totransact business in Virginia; and (ix) has provided an anti-fraud plan thatmeets the requirements of subdivision E 2 of § 38.2-6011.
E. If the applicant for a viatical settlement provider license is anonresident, such applicant, as a condition precedent to receiving or holdinga license, shall designate a resident of this Commonwealth as the person uponwhom any process, notices, or order required or permitted by law to be servedupon such nonresident viatical settlement provider may be served; and suchlicensee shall promptly notify the clerk of the Commission in writing ofevery change in its designated agent for service of process, and such changeshall not become effective until acknowledged by the Commission. Whenever anonresident viatical settlement provider transacting business in thisCommonwealth fails to appoint or maintain a registered agent in thisCommonwealth, or whenever its registered agent cannot with reasonablediligence be found at the registered office, the clerk of the Commissionshall be an agent of the nonresident upon whom service may be made inaccordance with § 12.1-19.1.
F. A licensed insurer shall be prohibited from transacting the business of aviatical settlement provider.
G. The Commission may suspend, revoke, refuse to issue, or refuse to renewthe license of a viatical settlement provider if the Commission finds thatthe applicant or licensee has (i) made any material misrepresentation in theapplication; (ii) been guilty of fraudulent or dishonest practices; (iii)been subject to a final administrative action or has otherwise been shown tobe untrustworthy or incompetent to act as a viatical settlement provider;(iv) demonstrated a pattern of unreasonable payments to viators; (v) beenconvicted of a felony or any misdemeanor involving fraud or moral turpitude;(vi) entered into any viatical settlement contract that has not been approvedpursuant to this chapter; (vii) failed to honor contractual obligations setout in a viatical settlement contract; (viii) demonstrated or representedthat it no longer meets the requirements for initial licensure; (ix) hasassigned, transferred, or pledged a viaticated policy to a person other thana viatical settlement provider licensed in this Commonwealth, viaticalsettlement purchaser, an accredited investor, or qualified institutionalbuyer as defined respectively in Regulation D, Rule 501 or Rule 144A of theFederal Securities Act of 1933, as amended, financing entity, special purposeentity, or related provider trust; (x) violated any provisions of thischapter or other applicable provisions of this title or has in its employ ororganization any officer, partner, member, or key management personnel whohas violated any provision of this chapter or other applicable provisions ofthis title; or (xi) has renewed or requested renewal of its license beforeimplementing the anti-fraud initiatives required by subsection E of §38.2-6011.
H. No applicant to whom a license is refused after a hearing, nor anylicensee whose license is revoked, shall apply again for a license under thischapter until after the expiration of a period of five years from the date ofthe Commission's order, or such other period of time as the Commissionprescribes in its order.
I. A viatical settlement provider shall be bonded as required by theCommission. Rules issued pursuant to § 38.2-6014 may identify othermechanisms for financial accountability.
(1997, c. 814, § 38.2-5701; 1998, c. 11; 2003, c. 717.)
A. No person shall act as a viatical settlement provider with a resident ofthis Commonwealth without first obtaining a license from the Commission.
1. A person seeking to be licensed as a viatical settlement provider in thisCommonwealth shall apply for such license in a form acceptable to theCommission and shall pay to the Commission a nonrefundable application fee inan amount prescribed by the Commission. On and after July 1, 2003, such feeshall be not less than $300 and not more than $1,500. The application feerequired by this subdivision shall be collected by the Commission, paiddirectly into the state treasury, and credited to the "Bureau of InsuranceSpecial Fund - State Corporation Commission" for the maintenance of theBureau of Insurance as provided in subsection B of § 38.2-400.
2. A license issued anytime prior to July 1, 2004, shall expire on June 30,2004, unless renewed as set forth herein.
3. On or before March 1 of each year commencing March 1, 2004, a licensedviatical settlement provider shall remit a renewal application form andnonrefundable renewal fee in the form and amount prescribed by theCommission. Such fee shall be not less than $300 and not more than $1,500.The renewal fee required by this subdivision shall be collected by theCommission and paid directly into the state treasury and credited to the"Bureau of Insurance Special Fund - State Corporation Commission" for themaintenance of the Bureau of Insurance as provided in subsection B of §38.2-400.
4. A viatical settlement provider's license expiring on June 30 may berenewed on July 1 for a one-year period ending on June 30 of the followingyear if the required renewal application and a nonrefundable renewal fee havebeen received and the license is not terminated, suspended, or revoked at thetime of renewal. The renewal fee required by this subdivision shall becollected by the Commission and paid directly into the state treasury andcredited to the "Bureau of Insurance Special Fund - State CorporationCommission" for the maintenance of the Bureau of Insurance as provided insubsection B of § 38.2-400.
B. The applicant shall provide information on forms required by theCommission. The Commission shall have authority, at any time, to require theapplicant to disclose fully the identity of all stockholders, partners,officers, members, and employees, and the Commission may, in the exercise ofthe Commission's discretion, refuse to issue a license in the name of a legalentity if not satisfied that any officer, employee, stockholder, partner, ormember thereof who may materially influence the applicant's conduct meets thestandards of this chapter.
C. A license issued to a legal entity authorizes all partners, officers,members, and designated employees to act as the viatical settlement providerunder the license, and all those persons shall be named in the applicationand any application supplements.
D. Upon the filing of an application and the payment of the nonrefundableapplication fee, the Commission shall make such investigation of eachapplicant as the Commission may determine to be appropriate and issue alicense if it finds that the applicant: (i) has provided a detailed plan ofoperation; (ii) is competent and trustworthy; (iii) indicates its intentionto act in good faith within the confines of the license; (iv) has a goodbusiness reputation; (v) if an individual, has had experience, training oreducation that qualifies him for licensure; (vi) if a resident partnership,limited liability company, or corporation, has recorded the existence of thepartnership, limited liability company, or corporation pursuant to law; (vii)if a corporation, has specific authority to act as a viatical settlementprovider in its charter; (viii) if a nonresident partnership, limitedliability company, or corporation, has furnished proof of its authority totransact business in Virginia; and (ix) has provided an anti-fraud plan thatmeets the requirements of subdivision E 2 of § 38.2-6011.
E. If the applicant for a viatical settlement provider license is anonresident, such applicant, as a condition precedent to receiving or holdinga license, shall designate a resident of this Commonwealth as the person uponwhom any process, notices, or order required or permitted by law to be servedupon such nonresident viatical settlement provider may be served; and suchlicensee shall promptly notify the clerk of the Commission in writing ofevery change in its designated agent for service of process, and such changeshall not become effective until acknowledged by the Commission. Whenever anonresident viatical settlement provider transacting business in thisCommonwealth fails to appoint or maintain a registered agent in thisCommonwealth, or whenever its registered agent cannot with reasonablediligence be found at the registered office, the clerk of the Commissionshall be an agent of the nonresident upon whom service may be made inaccordance with § 12.1-19.1.
F. A licensed insurer shall be prohibited from transacting the business of aviatical settlement provider.
G. The Commission may suspend, revoke, refuse to issue, or refuse to renewthe license of a viatical settlement provider if the Commission finds thatthe applicant or licensee has (i) made any material misrepresentation in theapplication; (ii) been guilty of fraudulent or dishonest practices; (iii)been subject to a final administrative action or has otherwise been shown tobe untrustworthy or incompetent to act as a viatical settlement provider;(iv) demonstrated a pattern of unreasonable payments to viators; (v) beenconvicted of a felony or any misdemeanor involving fraud or moral turpitude;(vi) entered into any viatical settlement contract that has not been approvedpursuant to this chapter; (vii) failed to honor contractual obligations setout in a viatical settlement contract; (viii) demonstrated or representedthat it no longer meets the requirements for initial licensure; (ix) hasassigned, transferred, or pledged a viaticated policy to a person other thana viatical settlement provider licensed in this Commonwealth, viaticalsettlement purchaser, an accredited investor, or qualified institutionalbuyer as defined respectively in Regulation D, Rule 501 or Rule 144A of theFederal Securities Act of 1933, as amended, financing entity, special purposeentity, or related provider trust; (x) violated any provisions of thischapter or other applicable provisions of this title or has in its employ ororganization any officer, partner, member, or key management personnel whohas violated any provision of this chapter or other applicable provisions ofthis title; or (xi) has renewed or requested renewal of its license beforeimplementing the anti-fraud initiatives required by subsection E of §38.2-6011.
H. No applicant to whom a license is refused after a hearing, nor anylicensee whose license is revoked, shall apply again for a license under thischapter until after the expiration of a period of five years from the date ofthe Commission's order, or such other period of time as the Commissionprescribes in its order.
I. A viatical settlement provider shall be bonded as required by theCommission. Rules issued pursuant to § 38.2-6014 may identify othermechanisms for financial accountability.
(1997, c. 814, § 38.2-5701; 1998, c. 11; 2003, c. 717.)
A. No person shall act as a viatical settlement provider with a resident ofthis Commonwealth without first obtaining a license from the Commission.
1. A person seeking to be licensed as a viatical settlement provider in thisCommonwealth shall apply for such license in a form acceptable to theCommission and shall pay to the Commission a nonrefundable application fee inan amount prescribed by the Commission. On and after July 1, 2003, such feeshall be not less than $300 and not more than $1,500. The application feerequired by this subdivision shall be collected by the Commission, paiddirectly into the state treasury, and credited to the "Bureau of InsuranceSpecial Fund - State Corporation Commission" for the maintenance of theBureau of Insurance as provided in subsection B of § 38.2-400.
2. A license issued anytime prior to July 1, 2004, shall expire on June 30,2004, unless renewed as set forth herein.
3. On or before March 1 of each year commencing March 1, 2004, a licensedviatical settlement provider shall remit a renewal application form andnonrefundable renewal fee in the form and amount prescribed by theCommission. Such fee shall be not less than $300 and not more than $1,500.The renewal fee required by this subdivision shall be collected by theCommission and paid directly into the state treasury and credited to the"Bureau of Insurance Special Fund - State Corporation Commission" for themaintenance of the Bureau of Insurance as provided in subsection B of §38.2-400.
4. A viatical settlement provider's license expiring on June 30 may berenewed on July 1 for a one-year period ending on June 30 of the followingyear if the required renewal application and a nonrefundable renewal fee havebeen received and the license is not terminated, suspended, or revoked at thetime of renewal. The renewal fee required by this subdivision shall becollected by the Commission and paid directly into the state treasury andcredited to the "Bureau of Insurance Special Fund - State CorporationCommission" for the maintenance of the Bureau of Insurance as provided insubsection B of § 38.2-400.
B. The applicant shall provide information on forms required by theCommission. The Commission shall have authority, at any time, to require theapplicant to disclose fully the identity of all stockholders, partners,officers, members, and employees, and the Commission may, in the exercise ofthe Commission's discretion, refuse to issue a license in the name of a legalentity if not satisfied that any officer, employee, stockholder, partner, ormember thereof who may materially influence the applicant's conduct meets thestandards of this chapter.
C. A license issued to a legal entity authorizes all partners, officers,members, and designated employees to act as the viatical settlement providerunder the license, and all those persons shall be named in the applicationand any application supplements.
D. Upon the filing of an application and the payment of the nonrefundableapplication fee, the Commission shall make such investigation of eachapplicant as the Commission may determine to be appropriate and issue alicense if it finds that the applicant: (i) has provided a detailed plan ofoperation; (ii) is competent and trustworthy; (iii) indicates its intentionto act in good faith within the confines of the license; (iv) has a goodbusiness reputation; (v) if an individual, has had experience, training oreducation that qualifies him for licensure; (vi) if a resident partnership,limited liability company, or corporation, has recorded the existence of thepartnership, limited liability company, or corporation pursuant to law; (vii)if a corporation, has specific authority to act as a viatical settlementprovider in its charter; (viii) if a nonresident partnership, limitedliability company, or corporation, has furnished proof of its authority totransact business in Virginia; and (ix) has provided an anti-fraud plan thatmeets the requirements of subdivision E 2 of § 38.2-6011.
E. If the applicant for a viatical settlement provider license is anonresident, such applicant, as a condition precedent to receiving or holdinga license, shall designate a resident of this Commonwealth as the person uponwhom any process, notices, or order required or permitted by law to be servedupon such nonresident viatical settlement provider may be served; and suchlicensee shall promptly notify the clerk of the Commission in writing ofevery change in its designated agent for service of process, and such changeshall not become effective until acknowledged by the Commission. Whenever anonresident viatical settlement provider transacting business in thisCommonwealth fails to appoint or maintain a registered agent in thisCommonwealth, or whenever its registered agent cannot with reasonablediligence be found at the registered office, the clerk of the Commissionshall be an agent of the nonresident upon whom service may be made inaccordance with § 12.1-19.1.
F. A licensed insurer shall be prohibited from transacting the business of aviatical settlement provider.
G. The Commission may suspend, revoke, refuse to issue, or refuse to renewthe license of a viatical settlement provider if the Commission finds thatthe applicant or licensee has (i) made any material misrepresentation in theapplication; (ii) been guilty of fraudulent or dishonest practices; (iii)been subject to a final administrative action or has otherwise been shown tobe untrustworthy or incompetent to act as a viatical settlement provider;(iv) demonstrated a pattern of unreasonable payments to viators; (v) beenconvicted of a felony or any misdemeanor involving fraud or moral turpitude;(vi) entered into any viatical settlement contract that has not been approvedpursuant to this chapter; (vii) failed to honor contractual obligations setout in a viatical settlement contract; (viii) demonstrated or representedthat it no longer meets the requirements for initial licensure; (ix) hasassigned, transferred, or pledged a viaticated policy to a person other thana viatical settlement provider licensed in this Commonwealth, viaticalsettlement purchaser, an accredited investor, or qualified institutionalbuyer as defined respectively in Regulation D, Rule 501 or Rule 144A of theFederal Securities Act of 1933, as amended, financing entity, special purposeentity, or related provider trust; (x) violated any provisions of thischapter or other applicable provisions of this title or has in its employ ororganization any officer, partner, member, or key management personnel whohas violated any provision of this chapter or other applicable provisions ofthis title; or (xi) has renewed or requested renewal of its license beforeimplementing the anti-fraud initiatives required by subsection E of §38.2-6011.
H. No applicant to whom a license is refused after a hearing, nor anylicensee whose license is revoked, shall apply again for a license under thischapter until after the expiration of a period of five years from the date ofthe Commission's order, or such other period of time as the Commissionprescribes in its order.
I. A viatical settlement provider shall be bonded as required by theCommission. Rules issued pursuant to § 38.2-6014 may identify othermechanisms for financial accountability.
(1997, c. 814, § 38.2-5701; 1998, c. 11; 2003, c. 717.)
