| (a) General form filing requirement. A person must
not use a form used to effectuate a life settlement in this state
unless the form has been filed with and approved by the commissioner
under this section, if prior approval is required by subsection (f)
of this section.
(b) Required life settlement contract form filings.
Forms that must be filed include the following:
(1) settlement contracts, including any amendments;
(2) disclosures;
(3) verification of coverage forms;
(4) escrow or trust agreements;
(5) documents used to obtain or release confidential
information, including documents used by the life settlement broker
or provider that in any way refer to, affect, request, or relate to
a life settlement broker or provider obtaining or releasing confidential
information;
(6) owner consent forms;
(7) power of attorney forms;
(8) settlement applications;
(9) premium finance loan documents as specified in
Insurance Code §1111A.002(11)(B), unless exempted by §1111A.002(11-A);
and
(10) any other form used by a life settlement broker
or provider to effectuate a life settlement contract in this state.
(c) Submission. Licensees must submit one copy of forms
as required by this section. Non-electronic filings must be submitted
to the Texas Department of Insurance, Life and Health Division, Filings
Intake, MC-LH-LHL, P.O. Box 12030, Austin, Texas 78711-2030. A filing
submitted electronically must be submitted through the System for
Electronic Rate and Form Filing. A person must hold a life settlement
broker's or provider's license issued by the department, have authority
to operate as a life settlement broker, or be authorized under subsection
(d)(2) of this section to submit forms.
(d) Transmittal checklist requirement. The commissioner
adopts by reference the Transmittal Checklist for Life/Health Rate
and Form Filings (revised May 2013) to be filed with and attached
to forms filed pursuant to subsection (c) of this section. The form
may be obtained from the Texas Department of Insurance, Life and Health
Division, Filings Intake, MC-LH-LHL, P.O. Box 12030, Austin, Texas
78711-2030 or by accessing the department's website at www.tdi.texas.gov/forms.
The transmittal checklist must provide complete and accurate information
about the filing, be signed by a duly authorized representative or
attorney of the life settlement broker or provider, and include the
following information:
(1) the name and license number of the submitting life
settlement broker or provider;
(2) a designated contact person for the filing, including
the individual's name, address, phone number, and, if available, fax
number, and email address. If the form filing is submitted by anyone
other than the life settlement broker or provider, the filing must
include an attachment executed by the life settlement broker or provider,
or by an officer of an entity, that designates the person submitting
the filing as the contact for that filing;
(3) a list of all submitted forms and an explanation
of the purpose and use of each form;
(4) if applicable, a list of the form numbers and approval
dates of all previously reviewed forms with which the submitted form
will be used and a statement explaining when the submitted form will
be used;
(5) a designation indicating the type of filing, as
those types are described in subsection (h) of this section; and
(6) any applicable information, attachments, and certifications
specified in this section.
(e) Specific form filing requirements. Forms filed
pursuant to this section are subject to the requirements set forth
in paragraphs (1) - (3) of this subsection.
(1) Any form filed pursuant to this section must:
(A) prominently display the full name, home office
mailing address, and telephone number, and email address, if available,
of the life settlement broker or provider;
(B) include specimen language and specimen fill-in
material. A broker or provider is prohibited from including the confidential
information of any policy owner in the filed form. Fill-in lines,
blanks, and text boxes that are clearly titled with the information
to be filled in do not require specimen language;
(C) be submitted on 8-1/2-by-11-inch paper or formatted
for that size if submitted electronically. The department will not
accept bound forms;
(D) be submitted in typewritten, computer-generated,
or printer's proof format and be clearly legible;
(E) include a unique form number designation sufficient
to distinguish it from all other forms used by the life settlement
broker or provider. The form number must be located in the lower left-hand
corner of the cover page or on the first page of the form, if visible
with the cover closed; and
(F) a designation indicating whether the form is filed
as file and use or review and approval prior to use as those categories
are described in subsection (f) of this section.
(2) A form filed under this section may contain variable
language, provided the variable language is both bracketed and accompanied
by a clear explanation of how the material will vary and how it will
be used.
(3) The department will not accept handwritten forms
or handwritten corrections.
(f) Categories for form filings.
(1) Review and approval prior to use; deemer. A life
settlement broker or provider must file life settlement contract forms,
disclosures, and verification of coverage forms under this paragraph
with the department not less than 60 days prior to the life settlement
broker's or provider's use or delivery of such form. After the submission
of a filing under this subsection, the life settlement broker or provider
may not use or deliver the form on or before 60 days from the date
the department receives the form unless the department approves the
form during the 60-day period. If the department has not approved
the form by the 60th day after the date the department receives the
form, the life settlement broker or provider may deem the form approved
only if:
(A) the life settlement broker or provider has not
requested an extension or waiver of the review period; and
(B) the department has not disapproved the form.
(2) File and use. A life settlement broker or provider
may immediately use and deliver a form filed under this category in
this state until the department makes a request for corrections or
disapproves the form. A life settlement broker or provider may file
any other form identified in subsection (b)(4) - (10) of this section
under this paragraph. A filing under this category must include the
information and certifications specified in subsection (i)(1) and
(2) of this section. Any form that the department has previously disapproved
pursuant to subsection (k) of this section is not eligible for filing
under this category.
(3) Forms approved prior to the effective date of this
section. Forms approved prior to the effective date of this section
must comply with this subchapter six months from the effective date
of this section.
(g) Extension or waiver of review period. A request
for extension of time for the approval of a form must comply with
paragraphs (1) - (5) of this subsection.
(1) A life settlement broker or provider may request
in writing an extension to the approval period for a form for an additional
period not to exceed 45 days.
(2) The department automatically grants a timely request
for extension under this section on the date it receives the request.
(3) The department will only grant one extension under
this section.
(4) If the department grants an extension under this
section and does not affirmatively approve or disapprove the form
before the extended period expires, the form is considered approved
on the first day after the date the extended period expires.
(5) A life settlement broker or provider may waive
the deeming of the form filings.
(h) Types of form filings. The types of life settlement
contract form filings available for designation on the transmittal
checklist are as follows:
(1) New form. A form that the department has not previously
reviewed or approved under Insurance Code §1111A.005 and this
subchapter, except for a form withdrawn by a life settlement broker
or provider pursuant to paragraph (6) of this subsection.
(2) Informational form. A form submitted for informational
purposes only.
(3) Substantially similar to a previously approved
form. A form that is substantially similar to a form that the department
reviewed or approved on or after the effective date of this subchapter.
This type of form filing requires the information and certification
specified in subsection (i)(1), (2), and (4) of this section.
Cont'd... |
