§3837. License revocation and denial

Link to law: http://legislature.vermont.gov/statutes/section/08/103/03837
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

103

:
LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS






Subchapter

005B
:
LIFE SETTLEMENTS










 

§

3837. License revocation and denial

(a) Life

settlement providers. The commissioner may suspend or revoke and may refuse to

issue or renew the license of a life settlement provider if the commissioner

finds that:

(1) There was

any material misrepresentation in the application for the license;

(2) The licensee

or any officer, partner, member, or key management personnel have been

convicted of fraudulent or dishonest practices or are subject to a civil

judicial adjudication under federal, foreign, or state law or to an

administrative action issued by any jurisdiction showing the licensee or any

officer, partner, member, or key management personnel to be untrustworthy or

incompetent;

(3) The licensee

demonstrates a pattern of unreasonable payments to policy owners;

(4) The licensee

or any officer, partner, member, or key management personnel have been found

guilty of or have pleaded guilty or nolo contendere to any felony or to a

misdemeanor involving fraud or moral turpitude, regardless of whether a

judgment of conviction has been entered by the court;

(5) The licensee

has entered into any life settlement contract that has not been approved

pursuant to this subchapter;

(6) The licensee

has failed to honor contractual obligations set out in a life settlement

contract;

(7) The licensee

no longer meets the requirements for initial licensure;

(8) The licensee

has assigned, transferred, or pledged a policy subject to a life settlement

contract to a person other than a life settlement provider licensed in this

state, an accredited investor or qualified institutional buyer as defined

respectively in Rule 501(a) or Rule 144A promulgated under the Federal

Securities Act of 1933, as amended, a financing entity, a special purpose

entity, or a related provider trust;

(9) The licensee

or any officer, partner, member, or key management personnel has violated any

provision of this subchapter or a rule adopted or order issued under this

subchapter;

(10) The

licensee or any officer, partner, member, or key management personnel have

violated any provision of chapter 150 of Title 9 (the Vermont Uniform

Securities Act); or

(11) The

licensee has, in the conduct of his or her affairs, used fraudulent, coercive,

or dishonest practices or has shown himself or herself to be incompetent,

untrustworthy or financially irresponsible.

(b) Life

settlement brokers. The commissioner may refuse to issue or renew or may

suspend or revoke the license of a life settlement broker if the commissioner

finds that:

(1) There was

any material misrepresentation in the application for the license;

(2) The licensee

has been convicted of fraudulent or dishonest practices or is subject to a

civil judicial adjudication under federal, foreign, or state law or to an

administrative action issued by any jurisdiction showing the licensee or any

officer, partner, member, or key management personnel to be untrustworthy or

incompetent;

(3) The licensee

has been found guilty of or has pleaded guilty or nolo contendere to any felony

or to a misdemeanor involving fraud, dishonesty, breach of trust, or moral

turpitude, regardless of whether a judgment of conviction has been entered by

the court;

(4) The licensee

no longer meets the requirements for initial licensure;

(5) The licensee

has engaged in any one or more of the acts or conditions set forth in

subsection 4804(a) of this title;

(6) The licensee

has violated any provision of this subchapter or a rule adopted or order issued

under this subchapter;

(7) The licensee

or any officer, partner, member, or key management personnel have violated any

provision of chapter 150 of Title 9 (the Vermont Uniform Securities Act); or

(8) The licensee

has otherwise engaged in bad-faith conduct with one or more policy owners.

(Added 2009, No. 53, § 1, eff. Jan. 1, 2010.)
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