(a) Applicant. In this section, "applicant" means a
person applying for a life settlement broker or provider license.
(b) License requirements.
(1) A person engaging in business as a life settlement
broker or life settlement provider in this state must apply for and
obtain a license issued by the department as required by this subchapter,
except that:
(A) a person may operate as a life settlement broker
without a life settlement broker license if that person has held a
life insurance agent license in this state for at least one year and
holds an active license, or has held a life insurance agent license
in that person's home state for at least one year and is licensed
as a nonresident agent in this state. The life insurance agent must
notify the department in accord with §3.1725 of this title (relating
to Life Insurance Agent Notification) and Insurance Code Chapter 1111A;
and
(B) a person may operate as a life settlement broker
without a life settlement broker license if that person is a licensed
attorney, certified public accountant, or financial planner who is
retained in the type of practice customarily performed in a professional
capacity to represent the owner and whose compensation for the life
settlement transaction is not paid directly or indirectly by the provider
or any other person, except the owner.
(2) A life settlement broker or provider is prohibited
from concurrently holding more than one license of the same type and
in the same legal name.
(3) A life settlement broker or provider subject to
the provisions of this subchapter must apply for issuance of the life
settlement broker's or provider's license in the life settlement broker's
or provider's legal name and may only act within the scope of authority
granted by the license. If a person holds a license authorizing the
person to act as a life settlement broker or provider, that person
need not obtain an additional license to participate in a registered
partnership or corporate entity of the same type in this state, but
the partnership or corporate entity with which the person participates
must apply for and hold, in its own legal name, a separate license
to conduct business as a life settlement broker or provider in this
state.
(4) A licensed life settlement broker or provider may
have additional offices or do business under assumed names, as that
term is defined in §19.901 of this title (relating to Definitions
Concerning Conduct of Licensed Agents), without obtaining an additional
license. However, the life settlement broker or provider must furnish
the department with a list identifying any and all offices from which
the life settlement broker or provider will conduct life settlement
business and showing any and all assumed names that the life settlement
broker or provider will utilize in conducting life settlement business
at any of those offices.
(A) Where such a filing is required under the Assumed
Business or Professional Name Act, Business and Commerce Code Chapter
71, or any similar statute, the life settlement broker or provider
must provide the department with a copy of the valid assumed name
certificate reflecting proper registration of each assumed name utilized
by the life settlement broker or provider.
(B) A life settlement broker or provider doing business
under an assumed name must comply with subsection (c)(5) of this section.
(c) Information required with application. In addition
to a complete License Application for a Life Settlement Provider or
Broker form, an applicant for a license to engage in business as a
life settlement broker or provider must submit the items set forth
in paragraphs (1) - (7) of this subsection, as follows:
(1) either:
(A) a certificate of account status issued by the Texas
Comptroller of Public Accounts reflecting that the applicant is in
good standing or temporary good standing; or
(B) a certification signed by an officer or partner
of the applicant attesting that the applicant is not subject to Texas
Tax Code Chapter 171;
(2) if a provider, a detailed plan of operation, including,
but not limited to the following, where applicable:
(A) history:
(i) a brief history of the applicant since its formation,
if an entity;
(ii) a list of all states in which the applicant holds
a license or registration as a life settlement provider or viatical
settlement provider and the date(s) that the applicant obtained such
licensure or registration;
(iii) a list of all states in which the applicant is
currently doing business, but in which a license or registration is
not required; and
(iv) a list and description of any pending lawsuits
or judgments naming the applicant as defendant or co-defendant;
(B) management:
(i) evidence that the applicant has a good business
reputation, and a detailed description of the experience, training,
or education that qualifies the applicant to conduct the business
of life settlements as a life settlement provider; and
(ii) if the applicant is a subsidiary of a parent or
holding company, an organizational chart showing the relationship
between the parent and all affiliated entities. "Affiliate" and "subsidiary"
have the meaning assigned by Insurance Code §823.003; and
(C) marketing plan:
(i) a detailed description of the applicant's marketing
plan; and
(ii) the applicant's projected volume of business in
Texas and nationwide for the first three years after licensure in
Texas;
(3) an antifraud plan that meets the requirements of
Insurance Code §1111A.022;
(4) a completed Biographical Affidavit form to be used
as an attachment to the License Application for a Life Settlement
Provider or Broker form for each owner, partner, director, officer,
key management personnel, or employee having authority to direct the
management of the organization, and any person who has ownership of
10 percent or greater of the applicant or the applicant's stock;
(5) the applicant's legal name, including any assumed
name, used by a life settlement broker or provider in the conduct
of business under a license is subject to the requirements of §19.902
of this title (relating to One Agent, One License), except that a
separate application is not required for a life settlement broker
or provider who conducts business under a single assumed name and
registers that name with the department on the life settlement broker's
or provider's application for license;
(6) if a business entity domiciled in Texas, a current
copy of its certificate of status from the Office of the Texas Secretary
of State; and
(7) if a business entity not domiciled in Texas:
(A) a current copy of its certificate of good standing
from the state of its domicile; and
(B) with the license application, a completed appointment
of an agent for service of process, unless the applicant has filed
with the department the applicant's written irrevocable consent that
any action against the applicant may be commenced by service of process
on the commissioner. The applicant must attach the completed form
to the application for license. The applicant must appoint as the
agent for service of process a person with a Texas address who has
an established place of business and who can be easily located and
served with notices, legal process, and papers.
(d) Application process.
(1) If an applicant for a license to operate as a life
settlement broker or provider has complied with all application procedures
in this section, the commissioner will issue the applicant a license
to engage in business as a life settlement broker or provider unless
the commissioner determines that the application should be denied
based on any one or more of the factors set forth in Insurance Code
Chapter 1111A.
(2) If the commissioner denies the application and
the applicant requests a hearing, or if at any time the applicant
no longer meets the requirements for licensure, the procedure for
the denial, renewal, revocation, suspension, annulment, or withdrawal
of a license is governed by §1.32 of this title (relating to
Licenses).
(3) The department will not accept applications that
do not contain all required information or certifications.
(e) License fee. An applicant must submit with each
completed application for license at the time of filing, a two-year
license fee in the amount of $50 for a life settlement broker, or
$100 for a life settlement provider. All license fees are nonrefundable
and nontransferable, including fees for applications that are denied
or incomplete.
Cont'd... |