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.)