2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 508E - VIATICAL SETTLEMENT CONTRACTS
508E.3 - LICENSE REQUIREMENTS.

        508E.3  LICENSE REQUIREMENTS.
         1. a.  A person shall not operate as a viatical settlement
      provider or viatical settlement broker without first obtaining a
      license from the commissioner of the state of residence of the
      viator.
         b. (1)  A life insurance producer who has been duly licensed
      as a resident insurance producer with a life line of authority in
      this state or the life insurance producer's home state for at least
      one year immediately prior to operating as a viatical settlement
      broker and is licensed as a nonresident producer in this state shall
      be deemed to meet the licensing requirements of this section and
      shall be permitted to operate as a viatical settlement broker.
         (2)  Not later than thirty days from the first day of operating as
      a viatical settlement broker, the life insurance producer shall
      notify the commissioner that the life insurance producer is acting as
      a viatical settlement broker on a form prescribed by the
      commissioner, and shall pay any applicable fee of up to one hundred
      dollars as provided by rules adopted by the commissioner.  The
      notification shall include an acknowledgment by the life insurance
      producer that the life insurance producer will operate as a viatical
      settlement broker in accordance with this chapter.  The notification
      shall also include proof that the life insurance producer is covered
      by an errors and omissions policy for an amount of not less than one
      hundred thousand dollars per occurrence and not less than one hundred
      thousand dollars total annual aggregate for all claims during the
      policy period.
         (3)  The insurer that issued the policy being viaticated shall not
      be responsible for any act or omission of a viatical settlement
      broker or viatical settlement provider arising out of or in
      connection with the viatical settlement transaction, unless the
      insurer receives compensation for the placement of a viatical
      settlement contract from the viatical settlement provider or viatical
      settlement broker in connection with the viatical settlement
      contract.
         c.  A person licensed as an attorney, certified public
      accountant, or financial planner accredited by a nationally
      recognized accreditation agency who is retained to represent the
      viator, whose compensation is not paid directly or indirectly by the
      viatical settlement provider, may negotiate viatical settlement
      contracts on behalf of the viator without having to obtain a license
      as a viatical settlement broker.
         2.  An application for a viatical settlement provider or viatical
      settlement broker license shall be made to the commissioner by the
      applicant on a form prescribed by the commissioner, and the
      application shall be accompanied by a fee of not more than one
      hundred dollars as provided by rules adopted by the commissioner.
         3.  The license term shall be three years and the license may be
      renewed upon payment of the renewal fee of not more than one hundred
      dollars as provided by rules adopted by the commissioner.  A failure
      to pay the fee by the renewal date results in expiration of the
      license.
         4.  An applicant shall provide information on forms required by
      the commissioner.  The commissioner shall have authority, at any
      time, to require the applicant to fully disclose the identity of all
      stockholders, partners, officers, members, and employees, and the
      commissioner may, in the exercise of the commissioner's discretion,
      refuse to issue a license in the name of a legal entity if not
      satisfied that any officer, employee, stockholder, partner, or member
      thereof who may materially influence the applicant's conduct meets
      the standards of this chapter.
         5.  A license issued to a legal entity authorizes all partners,
      officers, members, and designated employees to act as viatical
      settlement providers or viatical settlement brokers, as applicable,
      under the license, and all those persons shall be named in the
      application and any supplements to the application.
         6.  Upon the filing of an application and the payment of the
      license fee, the commissioner shall make an investigation of each
      applicant and issue a license if the commissioner finds that the
      applicant complies with all of the following:
         a.  If a viatical settlement provider, has provided a detailed
      plan of operation.
         b.  Is competent and trustworthy and intends to act in good
      faith in the capacity involved by the license applied for.
         c.  Has a good business reputation and has had experience,
      training, or education so as to be qualified in the business for
      which the license is applied for.
         d.  If a legal entity, provides a certificate of good standing
      from the state of its domicile.
         e.  If a viatical settlement provider or viatical settlement
      broker, has provided an antifraud plan that meets the requirements of
      section 508E.15, subsection 7.
         7.  The commissioner shall not issue a license to a nonresident
      applicant unless a written designation of an agent for service of
      process is filed and maintained with the commissioner or the
      applicant has filed with the commissioner the applicant's written
      irrevocable consent that any action against the applicant may be
      commenced against the applicant by service of process on the
      commissioner.
         8.  A viatical settlement provider or viatical settlement broker
      shall provide to the commissioner new or revised information about
      officers, ten-percent-or-more stockholders, partners, directors,
      members, or designated employees within thirty days of the change.
         9.  An individual licensed as a viatical settlement broker shall
      complete on a triennial basis running concurrent with the license
      term twenty credits of training related to viatical settlements and
      viatical settlement transactions, as required by the commissioner;
      provided, however, that a life insurance producer who is operating as
      a viatical settlement broker pursuant to subsection 1, paragraph
      "b", shall not be subject to the requirements of this subsection.
      Any person failing to meet the requirements of this subsection shall
      be subject to the penalties imposed by the commissioner.
         10.  Fees collected pursuant to this section shall be deposited as
      provided in section 505.7.  

         Section History: Recent Form

         2000 Acts, ch 1147, §37; 2008 Acts, ch 1155, §3; 2009 Acts, ch
      145, §6, 7; 2009 Acts, ch 181, §69
         Referred to in § 508E.2, 508E.7, 508E.10, 508E.18 

         Footnotes

         For future repeal of 2009 amendment to subsection 10, effective
      July 1, 2011, see 2009 Acts, ch 179, §146