N.Y. Comp. Codes R. & Regs. Tit. 11 § 380.3 - Viatical settlement companies and brokers, licensing requirements

(a) The original application for a license as a viatical settlement company (company) or viatical settlement broker (broker) shall be made on such forms and supplements as prescribed by the superintendent and shall be accompanied by the fee required by section 7802 (b) of the Insurance Law.

(b) A viatical settlement company shall submit with the application for a license, a detailed plan of operation to the Life Insurance and Companies Bureau including full particulars on the manner in which the company proposes to operate in New York and the type of insurance contracts it intends to viaticate.

(c) The viatical settlement company's plan of operation shall be a narrative overview of the applicant's business and shall include the following information:

(1) a certified copy of the viatical settlement company's charter and by-laws, if a corporation, and a copy of the partnership agreement, if a partnership;

(2) a statement of the types of business that the company transacts and the geographical locations where it engages in a particular type of business. A statement whether the viatical settlement business is or will be the company's primary or sole business;

(3) a list of all business licenses held by the company from any government entity;

(4) a chart showing the relationship of the company to any parent, affiliated or subsidiary corporation;

(5) a detailed description of the company's marketing techniques, including a description of training programs for those individuals who will have direct contact with viators;

(6) a list of the company's directors and key management personnel, including job title and a brief description of the job duties, and completed biographical questionnaires by each director and key management personnel for the company, immediate parent and ultimate parent;

(7) a list of names of individual owners who have a beneficial interest in or ownership of five percent or more in the company, indicating the corresponding percentage of interest;

(8) the actuarial pricing memorandum described in section 380.6(b) of this Part; and

(9) as part of the plan of operation filing, the viatical settlement company shall submit the viatical experience as described in section 380.4(c) of this Part for the three calendar years preceding the year in which the application for original license is made.

(d) A viatical settlement company shall submit with its original application for licensing the following information regarding its financial condition:

(1) financial statements, audited by an independent certified public accountant, for each of the three years immediately preceding the year of application or for that period, if shorter, during which the company was in existence. Such financial statements must disclose litigation expenses and costs incurred in processing viators' applications;

(2) copies of all documents filed with the Securities and Exchange Commission and any applicable State securities regulator;

(3) a schedule listing the names of qualified financial institutions with which the applicant has escrow and trust agreements, indicating the balance on each account and copies of all escrow and trust agreements; and

(4) a detailed description of what steps the company has taken to ensure that the viator will have access to funds, including the source which will make such funds available.

(e) The viatical settlement company shall include in its plan of operation all the information the company deems pertinent to its business and shall respond to all requests for further information.

(f) Each viatical settlement broker shall disclose on such forms as described in subdivision (a) of this section, all information requested and shall respond to all requests for further information.

(g) Any company submitting an application for a license shall secure approval for its name in accordance with section 1201 of the Insurance Law and Part 87 of this Title. Any broker applying to use other than the applicant's personal name shall apply to the Licensing Bureau of the Insurance Department for prior approval of that name. Approval of names by the Secretary of State does not comply with the requirements of the Insurance Law.

(h) Each broker or company shall immediately notify the Licensing Bureau or Corporate Affairs Bureau, respectively, of the Insurance Department in Albany, of any change in the address of the licensee and of any change in the members, officers or employees who are designated to act on behalf of the licensee. Any such licensee, except one which is publicly traded, shall make immediate notification of any change in its stockholders.

(i) Each viatical settlement company is required to immediately notify the Licensing Bureau of any changes in the plan of operation or financial information filed with its application.

(j) Each viatical settlement broker is required to immediately notify the Licensing Bureau of any change in the information provided with or in the license application.

(k) Each company and broker license issued pursuant to this Part shall be issued for a term expiring on the 30th day of November and may be renewed for the ensuing year upon the filing of an application in the form or forms and supplements as prescribed by the superintendent and payment of the fee required by section 7802 (c) of the Insurance Law.

Notes

N.Y. Comp. Codes R. & Regs. Tit. 11 § 380.3