2006 Georgia Code - 33-59-3

33-59-3. (a)(1) A person shall not negotiate life settlement contracts between a seller and one or more life settlement providers or otherwise act on behalf of a seller unless such person is a life insurance producer. (2) A life insurance producer, as defined in paragraph (10) of subsection (a) of Code Section 33-23-1, who has been licensed for at least one year, shall be permitted to negotiate, as defined in paragraph (11) of subsection (a) of Code Section 33-23-1, life settlement contracts between a seller residing in this state and one or more life settlement providers. For purposes of this Code section, the one-year requirement is deemed to be satisfied if such person has been licensed as a resident life insurance producer in his or her home state for at least one year. (3) Not later than 30 days from the first day of negotiating a life settlement on behalf of a seller, the life insurance producer shall notify the Commissioner of the activity on a form prescribed by the Commissioner and shall pay any applicable fees to be determined by the Commissioner. Notification shall include an acknowledgment by the life insurance producer that he or she operates in accordance with this chapter. (4) Irrespective of the manner in which the life insurance producer is compensated, a life insurance producer is deemed to represent only the seller and not the life settlement provider or any insurer, and the insurer that issued the selleŕs policy shall not be liable for any act or omission of the life insurance producer or the life settlement provider arising out of or in connection with the life settlement transaction, provided that the insurer shall remain liable for any of its own acts or omissions. (5) Notwithstanding paragraph (1) of this subsection, 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 seller, whose compensation is not paid directly or indirectly by the life settlement provider, may negotiate life settlement contracts without having to obtain a license as a life insurance producer. (b)(1) A person may not operate as a life settlement provider without first obtaining a life settlement provider license from the insurance commissioner of the state of residence of the seller. (2) Application for a life settlement provider license shall be made to the Commissioner by the applicant on a form prescribed by the Commissioner, and an application shall be accompanied by the fees to be determined by the Commissioner. Applications for license under this Code section shall be approved or denied by the Commissioner within 60 calendar days following receipt of a completed application by the Commissioner. The Commissioner shall notify applicants that the application is complete. Applications for such license shall be deemed approved after such time if not disapproved. (3) A license may be renewed from year to year on the anniversary date upon payment of the annual renewal fees to be determined by the Commissioner. Failure to pay the fees by the renewal date shall result in the expiration of the license. (4) Notwithstanding paragraphs (2) and (3) of this subsection, the license and renewal fees for a life settlement provider license may not exceed that established for an insurer as provided in Code Section 33-8-1. (5) The applicant for a life settlement provider license shall provide information on forms prescribed by the Commissioner. The Commissioner has authority, at any time, to require the applicant to fully disclose the identity of all stockholders, partners, officers, members, and employees, except stockholders owning fewer than 5 percent of the shares of an applicant whose shares are publicly traded, and the Commissioner may refuse to issue a license in the name of a legal entity if not satisfied that any officer, employee, stockholder, partner, or member of it who may materially influence the applicant́s conduct meets the standards of this chapter. (6) A license issued to a legal entity authorizes all partners, officers, members, and designated employees to act as life settlement providers, as applicable, under the license, and all those persons shall be named in the application and any supplements to the application. (7) Upon the filing of an application and the payment of the license fee, the Commissioner shall make an investigation of each applicant for a license as a life settlement provider and issue a license if the Commissioner finds that the applicant: (A) 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 for which he or she has applied; (C) Has a good business reputation and has had experience, training, or education so as to be qualified in the business for the license in which he or she has applied; (D) If a legal entity, provides a certificate of good standing from the state of its domicile; and (E) Has provided an antifraud plan that meets the requirements of this chapter. (8) The Commissioner may 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 applicant́s written irrevocable consent that any action against the applicant may be commenced against the applicant by service of process on the Commissioner. (9) A life settlement provider shall provide to the Commissioner new or revised information about officers, stockholders of 10 percent or more, partners, directors, members, or designated employees within 30 days of the change.

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