| (a) Renewal form. To renew an unexpired life settlement
provider's or broker's license, a license holder must submit to the
department a completed Application for Renewal, Surrender, or Change
of Information for a Life Settlement Provider or Broker form. The
license holder must submit with the renewal application a two-year
renewal fee of $50 for a life settlement broker license or $100 for
a life settlement provider license. All renewal fees are nonrefundable
and nontransferable.
(b) Renewal application requirements. In addition to
the completed Application for Renewal, Surrender, or Change of Information
for a Life Settlement Provider or Broker form, a license holder applying
for renewal of a life settlement broker's license or provider's license
must submit:
(1) if a business entity:
(A) a certificate of account status issued by the Texas
Comptroller of Public Accounts reflecting that the licensee is in
good standing or temporary good standing; or
(B) a certification signed by an officer or partner
of the licensee attesting that the licensee is not subject to the
Texas Tax Code Chapter 171; and
(2) if a life settlement broker, a certification that
the life settlement broker and each owner, partner, director, member,
officer, and designated employee named in the application or in any
supplement to the application, who perform acts of a life settlement
broker under Insurance Code §1111A.002(2), has completed training
equivalent to that required of individual brokers under §3.1723
of this title (relating to Course and Training Requirements for Brokers),
unless the individual is exempted under §3.1723(c) of this title
or has been associated with the license holder for less than two years.
(c) Change in license information. If there is a material
change to any information provided in the application for license,
the life settlement broker or provider must submit written notification
of the change to the department not later than 30 days after the date
such change occurs, using the Application for Renewal, Surrender,
or Change of Information for a Life Settlement Provider or Broker
form. This requirement applies to material changes in information
that occur after the license has been issued and during which time
the license remains valid and unexpired.
(1) A life settlement broker or provider notifying
the department of a change in information must provide the notice
separately from any other submission of information to the department.
(2) Each life settlement broker and provider must keep
the department informed of the licensee's current mailing, physical
addresses, and email address (if any). The department will use the
mailing and physical addresses on the most recent application or notification
the life settlement broker or provider submitted to the department
to communicate with and provide notices to the life settlement broker
or provider.
(d) Additional licenses. If the department grants a
licensee an additional life settlement broker or provider license,
the expiration date of the license initially granted applies to all
life settlement broker or provider licenses that the license holder
subsequently obtains from the department.
(e) Effect of renewal application.
(1) Continuance of license until approved or refused.
On filing the completed renewal application and payment of the proper
fee, the life settlement broker's or provider's current unexpired
license will continue in force until the department renews the license
or makes a final determination to refuse to renew the license, as
provided in Insurance Code §1111A.004 and Government Code §2001.054,
and provides notice of such refusal in writing to the license holder.
(2) Expiration for not more than 90 calendar days.
If the life settlement broker's or provider's license has been expired
for not more than 90 calendar days, the life settlement broker or
provider may apply to renew the license by sending a completed renewal
application and fee, as applicable, and an additional fee equal to
one-half of the required renewal fee.
(3) Expiration for more than 90 calendar days. If a
life settlement broker or provider license has been expired for more
than 90 calendar days, the life settlement broker or provider may
not apply to renew the license. The life settlement broker or provider
must obtain a new license by submitting a new application for a license
and fee under §3.1721 of this title (relating to License Application;
Fees).
(f) Surrender or nonrenewal of a provider's license.
If a life settlement provider does not intend to renew or elects to
surrender its license, the life settlement provider must request approval
from the department by submitting the Application for Renewal, Surrender,
or Change of Information for a Life Settlement Provider or Broker
form. The department must receive the provider's written request for
nonrenewal or surrender at least 30 days before the date the provider's
current license expires or planned surrender date. A life settlement
provider must apply for license renewal and cannot surrender or nonrenew
an expiring license if a life settlement contract is executed in the
15 days prior to the nonrenewal or surrender of the license. Prior
to expiration or surrender, the life settlement provider must submit
a report containing all the information required by §3.1760 of
this title (relating to Reporting Requirements) for all life settlement
contracts executed in Texas for which the insured is a resident of
Texas.
(g) Effect of license surrender. The surrender of a
life settlement broker's or provider's license to the department is
not a defense to a violation of the Insurance Code or this title committed
by the life settlement broker or provider prior to the effective date
of the surrender. In addition, surrendering to the department any
or all life settlement licenses in no way affects the authority of
the department or the commissioner to initiate or continue any investigation
or disciplinary proceedings concerning the life settlement broker
or provider.
(h) Insolvency. If a court of competent jurisdiction
assumes control of or appoints a receiver to control and wind down
the business operations of a life settlement broker or provider, and
the commissioner determines that such waiver is in the public interest
and is consistent with the requirements of the Insurance Code, the
department may waive requirements specified in this section.
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