Current through Register Vol. 63, No. 8, August 1, 2024
Section 836-014-0220 - Life Settlement Provider License Requirements(1) Any person, other than the owner of a life insurance policy, that enters into or effectuates a life settlement contract with an owner who is a resident of Oregon must obtain a life settlement provider license from the Department of Consumer and Business Services.(2) In order for an applicant to qualify for authority to transact business as a life settlement provider the person must do all of the following: (a) Demonstrate evidence of financial responsibility as follows:(A) The applicant's assets must exceed its liabilities by an amount of not less than $150,000;(B) The applicant must file with the Department of Consumer and Business Services a surety bond in the sum of $100,000 that meets the requirements of ORS 731.640; or(C) The applicant must deposit with the Department of Consumer and Business Services the sum of $100,000 in cash, certificates of deposit or securities, or any combination of cash, certificates of deposit or securities.(b) Submit a detailed plan of operation with the application that includes a description of the method for retaining records as required under ORS 744.346.(c) Provide an anti-fraud plan that includes initiatives reasonably calculated to detect, prosecute and prevent fraudulent life settlement acts. The anti-fraud plan must include but need not be limited to: (A) A provision for use of fraud investigators;(B) A description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures to resolve material inconsistencies between medical records and insurance applications;(C) Procedures for reporting possible fraudulent life settlement activities to the director;(D) A plan for anti-fraud education and training of the provider's staff and employees; and(E) A description or organizational chart of the personnel responsible for implementing and maintaining the integrity of the anti-fraud plan.(d) Demonstrate that procedures are in place to prevent any person convicted of a felony involving dishonesty or breach of trust to participate in the life settlement operations of the applicant.(3) As a condition of maintaining a license to act as a life settlement provider, a life settlement provider must do all of the following:(a)(A) At all times maintain assets that exceed its liabilities by an amount of not less than $150,000; or(B) At all times maintain with the Department of Consumer and Business Services a surety bond or the deposit of cash, certificates of deposit or securities. The surety bond, cash or securities must meet the requirements of ORS 731.640 and must be in the sum of $100,000.(b) Pay the annual provider renewal fee as specified in OAR 836-014-0210; and(c) Submit to the Department of Consumer and Business Services a completed license renewal application on the form prescribed by the Department, not later than the 30th day after the anniversary date of the life settlement provider's license.(4) A bond filed or deposit made in this state under this rule shall be held for the faithful performance by the life settlement provider of all transactions of the provider subject to ORS 744.319 to 744.358.(5) A life settlement provider license does not eliminate the need to obtain a securities license from the Department if a life settlement provider conducts life settlement transactions in a manner that would be considered an offer, sale, transfer or delivery of a security under the Oregon Securities Law.Or. Admin. R. 836-014-0220
ID 3-1996, f. & cert. ef. 2-26-96; ID 6-1996(Temp), f. & cert. ef. 5-8-96; ID 14-1996, f. & cert. ef. 11-1-96; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10Stat. Auth.: ORS 731.244, 744.358
Stats. Implemented: ORS 744.328