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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.)
