806 KAR 9:310. Life settlement broker

license and notification.

 

      RELATES TO: KRS 304.15-020,

304.15-700-304.15-725

      STATUTORY AUTHORITY: KRS 304.2-110(1),

304.15-700(2)(a), (b), 304.15-720

      NECESSITY, FUNCTION, AND CONFORMITY: EO

2008-507, signed June 6, 2008, created the Department of Insurance, headed by

the Commissioner of Insurance. KRS 304.2-110(1) authorizes the Executive

Director of Insurance to promulgate administrative regulations necessary for or

as an aid to the effectuation of any provision of the Kentucky Insurance Code

as defined in KRS 304.1-010. KRS 304.15-700(2)(a) requires the executive

director to promulgate administrative regulations to provide for the licensing

of life settlement brokers and the

termination or revocation of the license. KRS 304.15-720 authorizes the

executive director to promulgate administrative regulations to implement KRS

304.15-700 to 304.15-720 and to establish appropriate requirements and fees for

a life settlement broker license and

for notifying the executive director that an individual licensed as a life

insurance agent is acting as a life

settlement broker. This administrative regulation establishes the information

to be included in the application for, the requirements for the issuance and

continuation of, and the fees for a viatical settlement broker license and

notification.

 

      Section 1. Definitions. (1)

"Commissioner" means the Commissioner of the Department of Insurance.

      (2) "Department" means the

Department of Insurance.

      (3) "Life settlement broker" is

defined in KRS 304.15-020(8).

 

      Section 2. Individual Applicant. (1) An

individual may be issued a life settlement broker license if the commissioner determines that the

applicant:

      (a) Is at least twenty-one (21) years of

age;

      (b) Has completed a forty (40) hour life

settlement prelicensing course of study, which has been approved by the

executive director in accordance with 806 KAR 9:001;

      (c) Has passed a life settlement

examination in accordance with 806 KAR 9:070;

      (d) Submits:

      1. Electronically, a completed Individual

Uniform Application prescribed by the National Association of Insurance

Commissioners and available on the National Insurance Producer Registry's Web

site: www.NIPR.com; or

      2. Form 8301, incorporated by reference

in 806 KAR 9:340;

      (e) Submits Form 8301-BGC, incorporated

by reference in 806 KAR 9:340;

      (f) Remits the nonrefundable fee of $250;

      (g) Submits Form CPL-01, incorporated by

reference in 806 KAR 9:340;

      (h) Provides proof of financial

responsibility in the amounts established in KRS 304.15-700(5) and in

accordance with 806 KAR 9:210; and

      (i) If using an assumed name, provides

certified copies of certificates required in accordance with KRS 365.015.

      (2) An individual notifying the commissioner that he or she is acting as a

viatical settlement broker in accordance with KRS 304.15-700(2)(b) shall:

      (a) Be exempt from the prelicensing

course of study required by subsection (1)(b) and the examination required by

subsection (1)(c) of this section;

      (b) Submit electronically, a completed

Individual Uniform Notification prescribed by the National Association of

Insurance Commissioners and available on the National Insurance Producer

Registry's Web site: www.NIPR.com;

      (c) Remit the nonrefundable fee of $250;

      (d) Provide proof of financial

responsibility in the amounts established in KRS 304.15-700(2)(d) and in

accordance with 806 KAR 9:210; and

      (e) If using an assumed name, provide

certified copies of certificates required in accordance with KRS 365.015.

 

      Section 3. Business Entity Applicant. (1)

A business entity may be issued a life

settlement broker license if the commissioner

determines the applicant has designated only individuals acting for, or

authorized to act for, the business entity in accordance with KRS 304.9-133.

      (2) A business entity applying for a life

settlement broker license shall:

      (a) Submit:

      1. Electronically, a Uniform Business

Entity Application prescribed by the National Association of Insurance

Commissioners and available on the National Insurance Producer Registry's Web

site: www.NIPR.com; or

      2. Form 8301 - BE, incorporated by

reference in 806 KAR 9:340;

      (b) Remit the nonrefundable fee of $750;

      (c) Provide proof of financial responsibility

in the amounts established in KRS 304.15-700(5) and in accordance with 806 KAR

9:210; and

      (d) Provide the following documentation,

as applicable:

      1. Certificate of authority from the

Kentucky Secretary of State;

      2. Documentation supporting the

applicant’s answers on the application; and

      3. If using an assumed name, certified

copies of certificates required in accordance with KRS 365.015.

 

      Section 4. Renewal and Continuation of

License. (1) Each life settlement

broker license shall continue in force and renew in accordance with KRS

304.9-260. The renewal fee shall be nonrefundable and in the amount as follows:

      (a) $250 for an individual licensee; or

      (b) $750 for a business entity licensee.

      (2) A licensed life settlement broker and an insurance agent authorized to

operate as a life settlement broker

in accordance with KRS 304.15-700(2)(b) and Section 2(2) of this administrative

regulation shall notify the Department of Insurance in writing within thirty

(30) days of any change to the information in the application, notification, or

in the documents required to be submitted in accordance with Section 2 or 3 of

this administrative regulation.

 

      Section 5. Continuing Education. (1) An

individual licensed as a life settlement broker and an insurance agent

authorized to operate as a life

settlement broker in accordance with KRS 304.15-700(2)(b) and Section 2(2) of

this administrative regulation shall complete twenty-four (24) hours of

office-approved continuing education in accordance with KRS 304.9-295.

      (2) The required continuing education

hours shall include a minimum of:

      (a) Three (3) hours in life insurance;

      (b) Three (3) hours in life settlements;

and

      (c) Three (3) hours in ethics.

      (3) The same hours may be credited

towards the individual’s continuing education requirements for the life

settlement broker license and the applicable agent license, if any. (27 Ky.R.

3190; Am. 28 Ky.R. 81; eff. 7-16-2001; 29 Ky.R. 1364; eff. 1-16-2003; 32 Ky.R.

323; 909; 2013; eff. 6-2-06; 35 Ky.R. 1912; eff. 5-1-09.)