Iowa Admin. Code r. 191-48.3 - License requirements
(1)
Viatical settlement provider .
a. To be considered for licensure as a
viatical settlement provider pursuant to Iowa Code section
508E.3, a
person must file with the commissioner a completed viatical settlement provider
license application in the format prescribed by the commissioner, submit to a
criminal history check pursuant to Iowa Code section
522B.5A,
pay an application fee in the amount of $100, and provide the following:
(1) Copies of the viatical settlement
provider 's audited financial statements for the current year and each of the
previous five years. At the commissioner's discretion, the applicant also shall
provide a copy of the current year's consolidated annual audited financial
statement with a financial guarantee from the provider 's ultimate controlling
person, and copies of the provider 's unaudited financial statements for the
current year and each of the previous five years;
(2) Evidence that the applicant maintains
books and records in compliance with generally accepted accounting
principles;
(3) If a legal entity
intending to have any partners, officers, members, and designated employees act
as viatical settlement providers or viatical settlement brokers under the legal
entity's license pursuant to Iowa Code section
508E.3, all
completed forms, fees, and information required to be filed under subrule
48.3(2) for each such person named in the application and any supplements to
the application;
(4) Biographical
affidavits, in a form prescribed by the commissioner, for the following:
officers and directors (as listed on the most recent financial statement), key
managerial personnel (including any vice presidents or other individuals who
will control the operations of the applicant), and individuals with a 10
percent or more beneficial ownership in the applicant who will exercise control
over the applicant;
(5) An
independent business character report on the individuals listed in subparagraph
(4). The business character report shall be filed directly with the
commissioner by the independent third party that certified the report. The
business character report shall be in a format prescribed by the commissioner
and shall not be older than one year prior to the date the application is
filed. For purposes of this subparagraph, "business character report" means a
statement certified by an independent third party which has conducted a
comprehensive review of the applicant's background and has indicated that the
biographical information provided in the report, as completed by the applicant,
has no inaccurate or conflicting information. An independent third party is one
that has no affiliation with the applicant and is in the business of providing
background checks or investigations. Business character reports must be current
and shall not be older than one year prior to the date the application is
filed. The business character report shall be in the format prescribed by the
commissioner;
(6) Initial viatical
settlement contracts, disclosure statements, and advertising material that have
been or are being submitted for approval and that have been approved or that
are approved during the course of the application process pursuant to Iowa Code
section
508E.5;
(7) A copy of the provider trust, pursuant to
48.3(1)"c "; and
(8) A report of any civil, criminal or
administrative actions taken or pending against the viatical settlement
provider in any state or federal court or agency, regardless of
outcome.
b. A form for
the antifraud plan that is required to be submitted with an application
pursuant to Iowa Code section
508E.3, to
meet the requirements of Iowa Code section 508E. 15, can be found on the
division's website.
c. The provider
trust that is required to be submitted with an application, pursuant to
subparagraph 48.3(1)"a "(7), shall be in a format acceptable
to the commissioner and shall include the following provisions:
(1) The provider trust cannot be terminated
without the prior written consent of the commissioner.
(2) The provider trust is subject to the
prior approval of the commissioner.
(3) The provider trust funds shall not be
intermingled.
(4) The provider
trust funds held shall be identified based on individual
policyholders.
(5) The provider
trust trustee is obligated to indemnify the provider or the policyholder or
both for any lost funds.
(6) The
agreement can only be amended or terminated with the prior written consent of
the commissioner.
(7) The provider
trust trustee shall be a bank or trust company, having its principal place of
business in the United States.
(8)
The provider trust trustee shall be audited annually by independent public
accountants and complete the audit report, related financial statements, and
opinion on internal controls. All reports shall be available for review by the
commissioner.
d. In
addition to the information required in this subrule, the commissioner may ask
for other information necessary to determine whether the applicant for a
license as a viatical settlement provider complies with the requirements of
this subrule and Iowa Code subsection
508E.3(7).
(2)
Viatical settlement
broker.
a. To be considered for
licensure as a viatical settlement broker pursuant to Iowa Code section
508E.3, a
person must file a completed viatical settlement broker license application in
the format prescribed by the commissioner, pay an application fee in the amount
of $100, and submit to a criminal history check and pay the associated fee
pursuant to Iowa Code section
522B.5A.
In addition to finding compliance with Iowa Code section
508E.3, the
commissioner also shall find that the applicant:
(1) Has provided proof of one of the
following:
1. The applicant has taken and
passed an examination on viatical and life settlement contracts required by
another state insurance department and currently holds a license as a viatical
settlement broker from that state; or
2. The applicant has passed the viatical
settlement examination required by the commissioner. Examination results are
valid for 90 days after the date of the examination. If the applicant fails to
apply for licensure within 90 days after passing the examination, the
examination results shall be void;
(2) Has provided a report of any civil,
criminal or administrative actions taken or pending against the viatical
settlement broker in any state or federal court or agency, regardless of
outcome, excluding misdemeanor traffic citations and juvenile offenses;
and
(3) Has provided proof that the
applicant is covered by an errors and omissions policy for an amount of not
less than $100,000 liability per occurrence and not less than $100,000 total
annual aggregate for all claims during the policy period.
b. A form for the antifraud plan that is
required to be submitted with an application pursuant to Iowa Code section
508E.3, to meet the requirements of Iowa Code section 508E. 15, can be found on
the division's website.
c. In
addition to the information required in this subrule, the commissioner may ask
for other information necessary to determine whether the applicant for a
license as a viatical settlement broker complies with the requirements of this
subrule and has made a filing pursuant to Iowa Code subsection
508E.3(7).
(3)
Governing law where viators are residents of different states.
For purposes of this subrule, if there is more than one viator on a single
policy and the viators are residents of different states, the viatical
settlement contract shall be governed by the law of the state in which the
viator having the largest percentage ownership resides or, if the viators hold
equal ownership, the state of residence of one viator agreed upon in writing by
all viators. If another state does not have a statute or rule substantially
similar to Iowa Code chapter 508E and this rule, the actions related to the
viatical settlement contract shall be governed by the law of this
state.
(4)
License
term.
a. A viatical settlement
provider or viatical settlement broker who meets the requirements of this rule,
unless otherwise denied licensure pursuant to rule
191-48.10 (508E), shall be
issued a license.
b. A viatical
settlement provider license is valid for three years and automatically
terminates on the last day of the month of the anniversary of the issue date
unless renewed pursuant to subrule 48.3(6).
c. A viatical settlement broker license is
valid for an initial term of three years from the last day of the applicant's
anniversary month following the issuance of the license, and automatically
terminates on the last day of the month of the initial term unless renewed
pursuant to subrule 48.3(6).
d. A
viatical settlement provider license or a viatical settlement broker license
may remain in effect for the term of the license plus any renewals, unless the
license is revoked or suspended, as long as all required fees are paid in the
time prescribed by the commissioner.
e. The license issued to a viatical
settlement provider or viatical settlement broker shall be a limited license
that allows the licensee to operate only within the scope of its
license.
(5)
Continuing education for viatical settlement broker.
a. An individual licensed as a viatical
settlement broker must complete 36 credits of approved continuing education
during every license term. A license term is as set forth in paragraph
48.3(4)"c."
b. The
required continuing education credits shall include a minimum of:
(1) Thirty-three credits related to life
insurance, viatical settlements and viatical settlement transactions;
and
(2) Three credits in
ethics.
c. The viatical
settlement broker may submit the same completed credits to the commissioner
both to meet the continuing education requirements for the viatical settlement
broker license and to meet the continuing education requirements for an
applicable insurance producer license.
d. The license of a viatical settlement
broker who fails to comply with this continuing education requirement will
terminate.
e. An instructor of an
approved continuing education course shall be granted the same credit as a
student who completes the continuing education course, and the instructor may
receive such credit once during a license term.
f. A viatical settlement broker cannot carry
over excess continuing education credits from one license term to the
next.
g. A viatical settlement
broker may receive continuing education credit for self-study courses. A
self-study course is considered completed when the continuing education
provider receives the completed examination from the viatical settlement
broker.
(1) A viatical settlement broker may
receive continuing education credit for self-study courses that are part of a
recognized national designation program as described in 191-subrule
11.5(5).
(2) A viatical settlement
broker may receive continuing education credits for self-study courses that do
not meet the requirement of subparagraph (1) if the viatical settlement broker:
1. Submits an affidavit to the continuing
education provider that the examination was independently proctored and was
completed without any outside assistance, and
2. Correctly answers at least 70 percent of
the questions presented.
h. A viatical settlement broker shall not
receive continuing education credit for courses taken prior to the issuance of
an initial license.
i. A viatical
settlement broker cannot receive continuing education credit for the same
course twice in one license term. A viatical settlement broker cannot receive
continuing education credit both for the classroom portion and for the
examination portion of a national designation program as defined in 191-subrule
11.5(5).
j. A viatical settlement
broker may elect to comply with the continuing education requirements by taking
and passing the viatical settlement broker licensing examination within 90 days
prior to the date on which the renewal application is submitted.
k. A viatical settlement broker shall
demonstrate compliance with the continuing education requirements at the time
of license renewal. A viatical settlement broker shall maintain a record of all
continuing education courses completed by keeping the original certificates of
completion for four years after the end of the year of course completion.
l. For purposes of rule
191-48.3 (508E), "credit" means continuing education credit. One credit is 50
minutes of instruction or reading material in an acceptable topic.
m. Viatical settlement broker continuing
education courses will be approved in the same manner that insurance continuing
education courses are approved pursuant to 191-Chapter 11. The approval of
continuing education providers, the responsibilities of continuing education
providers, the prohibited conduct for continuing education providers, and the
fees for approval and renewal of continuing education providers and courses
shall be the same as those for insurance continuing education courses,
continuing education providers, and insurance producers set forth in rules
191-11.9 (505,522B) to
191-11.11 (505,522B) and
191-11.14 (505,522B). The
commissioner may enter into a contractual arrangement with a qualified outside
vendor to assist the commissioner with any or all continuing education services
in the same manner as the commissioner may for insurance continuing education
services pursuant to rule
191-11.12 (505,522B). The
commissioner may audit any continuing education course in the same manner as
the commissioner may for insurance continuing education courses pursuant to
rule 191-11.13 (505,522B).
(6)
License renewal. A
viatical settlement provider license or a viatical settlement broker license
may be renewed as follows:
a. A viatical
settlement provider license may be renewed by payment of $100 within 90 days
prior to the expiration date of the license and by demonstration that the
viatical settlement provider continues to meet the requirements of Iowa Code
section
508E.3 and
subrule 48.3(1), has provided biographical affidavits not older than one year
prior to the renewal date on all persons listed in subparagraph
48.3(1)"a "(4), has provided business character reports for
any new persons listed in subparagraph 48.3(1)"a"(4), and has
provided the reports required by rule
191-48.7 (508E).
(1) If renewal is approved, the license will
be renewed effective the last day of the month of the anniversary of the issue
date in the renewal year , will be valid for three years, and will automatically
terminate on the last day of the month of the anniversary of the issue date in
the following renewal year unless renewed pursuant to this subrule.
(2) Viatical settlement providers that had
licenses prior to January 1, 2009, shall have a renewal date of January
1.
b. A viatical
settlement broker license may be renewed by demonstration of completion of
continuing education as required in subrule 48.3(5) and payment of $100 within
90 days prior to the expiration date of the license. If renewal is approved,
the license will be renewed effective the last day of the month of the
anniversary of the issue date in the renewal year , will be valid for three
years, and will automatically terminate on the last day of the month of the
anniversary of the issue date in the following renewal year unless renewed
pursuant to this subrule.
c. If a
legal entity has any partners, officers, members, or designated employees
acting as viatical settlement providers or viatical settlement brokers under
the legal entity's license pursuant to Iowa Code section
508E.3, the
legal entity must provide all completed forms, fees, and information required
to be filed under paragraphs 48.3(6) "a" and"b" for each such
person named in the application, or in any supplements to the application, and
must provide any deletions to the list of names that was provided with the
original application. If there are any new partners, officers, members, and
designated employees that the legal entity intends will act as viatical
settlement providers or viatical settlement brokers under the legal entity's
license, the legal entity shall provide for each such person the forms,
information and fees required by subrule 48.3(2).
d. If a viatical settlement provider or
viatical settlement broker fails to comply with the renewal procedures within
the time prescribed, or a viatical settlement provider fails either to meet the
requirements of Iowa Code section 508E.3 and subrule 48.3(1) or to submit the
reports required in rule 191-48.7 (508E), such nonpayment or failure shall
result in lapse of the license.
e.
A licensed viatical settlement broker who is unable to comply with license
renewal procedures due to military service or some other extenuating
circumstance may request from the commissioner a waiver of renewal procedures.
Such viatical settlement broker may also request a waiver of any examination
requirement or any other penalty or sanction imposed for failure to comply with
renewal procedures.
(7)
License reinstatement.
a. A
viatical settlement broker may reinstate an expired license up to 12 months
after the license expiration date by proving that during the license term the
viatical settlement broker met the CE requirements found in subrule 48.3(5),
and by paying to the commissioner a reinstatement fee and license renewal fee.
A viatical settlement broker who fails to apply for license reinstatement
within 12 months of the license expiration date must apply for a new
license.
b. A viatical settlement
broker who has surrendered a license for a nondisciplinary reason and stated an
intent to exit the viatical settlement business may file a request to
reactivate the license. The request must be received by the commissioner within
90 days of the date the license was placed on inactive status. The request will
be granted if the former viatical settlement broker is otherwise eligible to
receive the license. If the request is not received within 90 days, the
viatical settlement broker must apply for a new license.
(8)
Reinstatement or reissuance of a
license after suspension, revocation or forfeiture in connection with
disciplinary matters; and forfeiture in lieu of compliance.
a. The term "reinstatement" as used in this
subrule means the reinstatement of a suspended license. The term "reissuance"
as used in this subrule means the issuance of a new license following either
the revocation of a license, the suspension and subsequent termination of a
license, or the forfeiture of a license in connection with a disciplinary
matter. This subrule does not apply to the reinstatement of an expired license
or the issuance of a new license after the reinstatement period has passed that
is not in connection with a disciplinary matter.
b. Any viatical settlement broker whose
license has been revoked or suspended by order, or who forfeited a license in
connection with a disciplinary matter, must apply to the commissioner for
reinstatement or reissuance in accordance with the terms of the order of
revocation or suspension or the order accepting the forfeiture.
(1) All proceedings for reinstatement or
reissuance shall be initiated by the applicant who shall file with the
commissioner an application for reinstatement or reissuance of a license. As
part of the application, the applicant shall submit to a criminal history check
pursuant to Iowa Code section
522B.5A.
(2) An application for reinstatement or
reissuance shall allege facts which, if established, will be sufficient to
enable the commissioner to determine that the basis of revocation, suspension
or forfeiture of the applicant's license no longer exists and that it will be
in the public interest for the application to be granted. The burden of proof
to establish such facts shall be on the applicant.
(3) A viatical settlement broker may request
reinstatement of a suspended license prior to the end of the suspension term;
however, reinstatement will not be effected until the suspension period has
ended.
(4) Unless otherwise
provided by law, if the order of revocation or suspension did not establish
terms upon which reinstatement or reissuance may occur, or if the license was
forfeited, an initial application for reinstatement or reissuance may not be
made until at least one year has elapsed from the date of the order of the
suspension (notwithstanding 191-paragraph 10.10(2)"e"),
revocation, or acceptance of the forfeiture of a license.
c. All proceedings upon the application for
reinstatement or reissuance, including matters preliminary and ancillary
thereto, shall be held in accordance with Iowa Code chapter 17A. Such
application shall be docketed in the original case in which the license was
suspended, revoked, or forfeited, if a case exists.
d. An order of reinstatement or reissuance
must be a written decision that incorporates findings of fact and conclusions
of law. An order granting an application for reinstatement or reissuance may
impose such terms and conditions as the commissioner or the commissioner's
designee deems appropriate, which may include one or more of the types of
disciplinary sanctions provided by this chapter or by Iowa Code chapter 508E.
The order is a public record and may be disseminated in accordance with Iowa
Code chapter 22.
e. A submission of
voluntary forfeiture of a license must be made in writing in the format
prescribed by the commissioner. Forfeiture of a license is effective upon the
submission unless a contested case proceeding is pending at the time of the
submission. If a contested case proceeding is pending, the forfeiture becomes
effective when and upon such conditions as required by order of the
commissioner. A forfeiture made during the pendency of a contested case
proceeding is considered a disciplinary action and must be published in the
same manner as is applicable to any other form of disciplinary order.
f. A license may be voluntarily
forfeited in lieu of compliance with an order of the commissioner or the
commissioner's designee with the written consent of the commissioner. The
forfeiture becomes effective when and upon such conditions as required by order
of the commissioner, which may include one or more of the types of disciplinary
sanctions provided by this chapter or by Iowa Code chapter 508E.
g. When a viatical settlement broker's
license has been suspended for a period of time that extends beyond the
viatical settlement broker's license expiration date, the license terminates at
the license expiration date, and the viatical settlement broker must request
reissuance pursuant to this subrule. However, reissuance will not be effected
until the suspension period has ended. If suspension for a period of time ends
prior to the viatical settlement broker's license expiration date, and the
viatical settlement broker has met all applicable requirements, the
commissioner must reinstate the license as soon as practicable but no earlier
than the end of the suspension period pursuant to paragraph 48.3(8) "b
". The commissioner is not prohibited from denying an application for
reinstatement or reissuance or bringing an additional immediate action if the
viatical settlement broker has engaged in misconduct during the period of
suspension.
(9)
Duty to notify commissioner of cessation of business in the
state. If a viatical settlement provider intends to cease business in
Iowa, it must notify the commissioner of those intentions and of its plan of
operation for such cessation at least 180 days before the cessation shall
occur. This requirement is not meant to imply that a company must continue to
accept new viatical or life settlement business during the 180-day
period.
(10)
Duty to notify
commissioner of changes.
a. A
viatical settlement provider shall provide to the commissioner any new or
revised information about officers, stockholders holding 10 percent or more of
the stock of the company, partners, directors, members or designated employees
within 30 days of the date the addition or revision occurred.
b. A viatical settlement provider or viatical
settlement broker shall inform the commissioner in writing of any change of
name or address within 30 days of the date of such change. In addition, a
viatical settlement provider shall provide the commissioner with 30 days'
notice of the cancellation or nonrenewal of a fidelity bond required for
licensure under subrule 48.3(1) and the name of the carrier that will be
providing coverage subsequent to such cancellation or nonrenewal.
c. A viatical settlement provider or viatical
settlement broker shall report to the commissioner any administrative action
taken against the viatical settlement provider or viatical settlement broker in
another state or federal jurisdiction or by another governmental agency in this
state within 30 days of the final disposition of the matter. This report shall
include a copy of the order, consent to the order, or other relevant legal
documents. Within 30 days of the initial pretrial hearing date, a viatical
settlement provider or viatical settlement broker shall report to the
commissioner any criminal prosecution of the viatical settlement provider or
viatical settlement broker taken in any jurisdiction. The report shall include
a copy of the initial complaint filed, the order resulting from the hearing,
and any other relevant legal documents.
(11)
Commissioner may use outside
assistance. In order to assist with the commissioner's duties, the
commissioner may contract with a nongovernmental entity, including, but not
limited to, the National Association of Insurance Commissioners (NAIC) or any
affiliate or subsidiary the NAIC oversees, to perform any ministerial functions
related to licensing of viatical settlement providers or viatical settlement
brokers that the commissioner deems appropriate including, but not limited to,
the collection of fees.
(12)
Fees.
a. Fees shall be paid
by check, money order, or credit card.
b. The fee for an examination may be set by
the outside testing service under contract with the division and must be
approved by the division.
c. The
fee for issuance or renewal of a viatical broker, legal entity or provider
license is $100.
d. The fee for
reinstatement or reissuance of a viatical broker, legal entity or provider
license is $100. In addition, applicable issuance or renewal fees will be
assessed.
e. The division may
charge a reasonable fee for the compilation and production of viatical broker,
legal entity or provider licensing records.
f. The fee for a criminal history check as
required pursuant to Iowa Code section
522B.5A is
$50.
Notes
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