210 Neb. Admin. Code, ch. 76, § 003 - License Requirements

003.01 The Director may require an individual applying for a viatical settlement broker license to pass a written examination designated by the Department testing the knowledge of the individual concerning viatical settlements, the duties and responsibilities of a viatical settlement broker, and the laws, rules and regulations applicable to viatical settlement sales in Nebraska.

003.02 In addition to the information required in Neb. Rev. Stat. § 44-1103, the director may ask for other information necessary to determine whether the applicant for a license as a viatical settlement provider or viatical settlement broker complies with the requirements of Neb. Rev. Stat. § 44-1103.

003.03 The application for a viatical settlement broker shall be accompanied by a fee of $ 40.00. The broker license may be renewed by payment of $ 40.00 and a current copy of a letter of good standing obtained from the filing officer of the applicant's state of domicile. The application for a viatical settlement provider shall be accompanied by a fee of $1,000. The provider license may be renewed annually by payment of $100 and a current copy of a letter of good standing from the state of domicile. If a viatical settlement provider or viatical settlement broker fails to pay the renewal fee within the time prescribed, or a viatical settlement provider fails to submit the reports required in Section 006 of this regulation, such nonpayment or failure to submit the required reports shall result in expiration of the license. If a viatical settlement provider has, at the time of renewal, viatical settlements where the insured has not died, it shall do one of the following:

( 003.03A) Renew or maintain its current license status until the earlier of the following events:

003.03A(1)) The date the viatical settlement provider properly assigns, sells or otherwise transfers the viatical settlements where the insured has not died; or

003. 03A(2)) The date that the last insured covered by viatical settlement transaction has died.

( 003.03B) Appoint, in writing, either the viatical settlement provider that entered into the viatical settlement, the broker who received commissions from the viatical settlement, if applicable, or any other viatical settlement provider or broker licensed in this state to make all inquiries to the viator, or the viator's designee, regarding health status of the viator or any other matters.

003.04 An individual licensed as a viatical settlement broker or authorized to act under a license issued to a licensed entity as a viatical settlement broker shall complete fifteen (15) hours of department-approved continuing education during each continuing education biennium.

( 003.04A) The required continuing education hours shall include a minimum of:

(a) Twelve (12) hours in life insurance;

(b) Three (3) hours in ethics.

( 003.04B) Pursuant to Neb. Rev. Stat. § 44-1103(8), a life insurance producer who is operating as a viatical settlement broker pursuant to Neb. Rev. Stat. § 44-1103(1) shall be exempt from the requirements of section 003.04.

( 003.04C) Each continuing education biennium shall begin at the end of the licensee's birth month when licensee's age ends in an even number.

( 003.04D) The license of an individual who fails to comply with this continuing education requirement and who has not been granted an extension of time to comply in accordance with the procedures set forth in Neb. Rev. Stat. § 44-4054(6) shall terminate and shall be promptly surrendered to the director without demand.

003.05 A viatical settlement broker or viatical settlement provider shall file with the director, and thereafter for as long as the license remains in effect shall keep in force, evidence of financial responsibility. Evidence of financial responsibility shall be in the form of:

( 003.05A) A surety bond executed and issued by an insurer authorized to issue surety bonds in this state in the amount of $250,000; or

( 003.05B) A deposit of cash, certificates of deposit, or securities, or any combination thereof, in the amount of $250,000.

003.06 The license issued to a viatical settlement provider or viatical settlement broker shall be a limited license that allows it to operate only within the scope of its license.

Notes

210 Neb. Admin. Code, ch. 76, § 003