2006 Georgia Code - 33-59-12

33-59-12. (a)(1) A person shall not commit a fraudulent life settlement act. (2) A person, knowingly or intentionally, shall not interfere with the enforcement of the provisions of this chapter or investigations of suspected or actual violations of this chapter. (3) A person in the business of life settlements, knowingly or intentionally, shall not permit a person convicted of a felony involving dishonesty or breach of trust to participate in the business of life settlements. (b)(1) A life settlement contract and an application for a life settlement contract, regardless of the form of transmission, shall contain the following statement or a substantially similar statement: 'Any person who knowingly presents false information in an application for insurance or life settlement contract is guilty of a crime and, upon conviction, may be subject to fines or confinement in prison, or both.' (2) The lack of a statement as provided for in paragraph (1) of this subsection does not constitute a defense in any prosecution for a fraudulent life settlement act. (c)(1) A person engaged in the business of life settlements having knowledge or a reasonable belief that a fraudulent life settlement act is being, will be, or has been committed shall provide to the Commissioner the information required by and in a manner prescribed by the Commissioner. (2) Another person having knowledge or a reasonable belief that a fraudulent life settlement act is being, will be, or has been committed may provide to the Commissioner the information required by and in a manner prescribed by the Commissioner. (d)(1) A civil liability may not be imposed on and a cause of action may not arise from a persońs furnishing information concerning suspected, anticipated, or completed fraudulent life settlement acts or suspected or completed fraudulent insurance acts, if the information is provided to or received from: (A) The Commissioner or the Commissioneŕs employees, agents, or representatives; (B) Federal, state, or local law enforcement or regulatory officials or their employees, agents, or representatives; (C) A person involved in the prevention and detection of fraudulent life settlement acts or that persońs agents, employees, or representatives; (D) The National Association of Insurance Commissioners, National Association of Securities Dealers, the North American Securities Administrators Association, or their employees, agents, or representatives or any other regulatory body overseeing life insurance or life settlement contracts; or (E) The insurer that issued the policy covering the life of the insured. (2) Paragraph (1) of this subsection does not apply to a statement made with actual malice. In an action brought against a person for filing a report or furnishing other information concerning a fraudulent life settlement act or a fraudulent insurance act, the party bringing the action shall plead specifically any allegation that paragraph (1) of this subsection does not apply because the person filing the report or furnishing the information did so with actual malice. (3) A person identified in paragraph (1) of this subsection is entitled to an award of attorneýs fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander, or another relevant tort arising out of activities in carrying out the provisions of this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this Code section, a proceeding is 'substantially justified' if it had a reasonable basis in law or fact at the time that it was initiated. (4) This Code section does not abrogate or modify common law or statutory privileges or immunities enjoyed by a person described in paragraph (1) of this subsection. (5) Paragraph (1) of this subsection does not apply to a persońs furnishing information concerning his or her own suspected, anticipated, or completed fraudulent life settlement acts or suspected, anticipated, or completed fraudulent insurance acts. (e)(1) The documents and evidence provided pursuant to subsection (d) of this Code section or obtained by the Commissioner in an investigation of suspected or actual fraudulent life settlement acts are privileged and confidential and are not a public record and are not subject to discovery or subpoena in a civil or criminal action. (2) Paragraph (1) of this subsection does not prohibit release by the Commissioner of documents and evidence obtained in an investigation of suspected or actual fraudulent life settlement acts: (A) In administrative or judicial proceedings to enforce laws administered by the Commissioner; (B) To federal, state, or local law enforcement or regulatory agencies, to an organization established for the purpose of detecting and preventing fraudulent life settlement acts, or to the National Association of Insurance Commissioners; or (C) At the discretion of the Commissioner, to a person in the business of life settlements that is aggrieved by a fraudulent life settlement act. (3) Release of documents and evidence provided by paragraph (2) of this subsection does not abrogate or modify the privilege granted in paragraph (1) of this subsection. (f) This chapter does not: (1) Preempt the authority or relieve the duty of other law enforcement or regulatory agencies to investigate, examine, and prosecute suspected violations of law; (2) Prevent or prohibit a person from disclosing voluntarily information concerning fraudulent life settlement acts to a law enforcement or regulatory agency other than the insurance department; or (3) Limit the powers granted elsewhere by the laws of this state to the Commissioner or an insurance fraud unit to investigate and examine possible violations of law and to take appropriate action against wrongdoers. (g) A life settlement provider shall adopt antifraud initiatives reasonably calculated to detect, assist in the prosecution of, and prevent fraudulent life settlement acts. The Commissioner may order or, if a licensee requests, may grant these modifications of the following required initiatives as necessary to ensure an effective antifraud program. The modifications may be more or less restrictive than the required initiatives so long as the modifications reasonably may be expected to accomplish the purpose of this Code section. Antifraud initiatives include: (1) Fraud investigators, who may be life settlement providers or employees or independent contractors of those life settlement providers; and (2) An antifraud plan that is submitted to the Commissioner. The antifraud plan shall include, but not be limited to, a description: (A) Of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures for resolving material inconsistencies between medical records and insurance applications; (B) Of the procedures for reporting possible fraudulent life settlement acts to the Commissioner; (C) Of the plan for antifraud education and training of underwriters and other personnel; and (D) A chart outlining the organizational arrangement of the antifraud personnel who are responsible for the investigation and reporting of possible fraudulent life settlement acts and investigating unresolved material inconsistencies between medical records and insurance applications. (3) Antifraud plans submitted to the Commissioner are privileged and confidential, are not a public record, and are not subject to discovery or subpoena in a civil or criminal action.

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