2013 New York Consolidated Laws
ISC - Insurance
Article 78 - (7801 - 7820) LIFE SETTLEMENTS
7805 - License and registration revocation.

 
    §  7805.  License  and registration revocation. (a) The superintendent
  may suspend,  revoke  or  refuse  to  renew  the  license  of  any  life
  settlement   provider   or  the  registration  of  any  life  settlement
  intermediary,  if,  after  notice  and   hearing,   the   superintendent
  determines   that  the  life  settlement  provider  or  life  settlement
  intermediary,  or  any  officer,  partner,  member,  or  key  management
  personnel thereof, has:
    (1)   violated  any  insurance  laws  or  any  regulation  promulgated
  thereunder, any subpoena or order of the superintendent  or  of  another
  state's  insurance  commissioner,  or any other law in the course of the
  licensee's dealings in such capacity;
    (2) provided materially incorrect, materially  misleading,  materially
  incomplete   or   materially   untrue  information  in  the  license  or
  registration application;
    (3) obtained or attempted to obtain a license or registration  through
  misrepresentation or fraud;
    (4)(A) used fraudulent, coercive or dishonest practices;
    (B) demonstrated incompetence;
    (C) demonstrated untrustworthiness; or
    (D) demonstrated financial irresponsibility in the conduct of business
  in this state or elsewhere;
    (5)  improperly  withheld,  misappropriated or converted any monies or
  properties  received  in  the  course  of  business  in  this  state  or
  elsewhere;
    (6)  intentionally  misrepresented the terms of any insurance contract
  or life settlement contract or any application therefor;
    (7) been convicted of a felony, or has been guilty  of  fraudulent  or
  dishonest practices or other misconduct or malfeasance;
    (8)  admitted  or  been  found  to have committed any insurance unfair
  trade practice or fraud;
    (9)  had  a  life  settlement  provider  license  or  life  settlement
  intermediary registration, or an equivalent denied, suspended or revoked
  in any other state, province, district or territory;
    (10)  forged  another person's name to an application for insurance or
  life settlement contract or to any document related to an  insurance  or
  life settlement transaction;
    (11)  knowingly  conducted  the  business  of  life settlements with a
  person who is not licensed or  registered  unless  such  person  is  not
  required to be licensed or registered;
    (12)  demonstrated  a  pattern  of  unreasonable payments to owners or
  insureds;
    (13) failed to  honor  contractual  obligations  set  out  in  a  life
  settlement contract;
    (14) sold, assigned, pledged or otherwise transferred the ownership of
  a settled policy to a person other than as provided in this article; or
    (15)  failed  to  protect the privacy of the insured or owner or other
  person for whom the licensee  or  registrant  was  required  to  provide
  protection pursuant to this article.
    (b)(1) Before the superintendent suspends, revokes or refuses to renew
  the  license of a life settlement provider or the registration of a life
  settlement intermediary, the superintendent shall  give  notice  to  the
  licensee  or  registrant  and shall hold, or cause to be held, a hearing
  not less than ten days after the giving  of  such  notice,  except  that
  where,  in the judgment of the superintendent, the public health, safety
  or welfare so requires, a license or registration may be  suspended  for
  up to ten days prior to a hearing.
    (2)  In lieu of revoking or suspending the license or registration for
  any of the causes enumerated in subsection  (a)  of  this  section,  the

  superintendent  may  impose  a  civil penalty not to exceed ten thousand
  dollars for each violation.
    (3)  Upon  the  failure  of  such  licensee  or registrant to pay such
  penalty ordered pursuant to paragraph  two  of  this  subsection  within
  twenty   days   after  the  mailing  of  such  order,  postage  prepaid,
  registered, and addressed to the last known place of  business  of  such
  licensee  or  registrant,  unless  such  order  is  stayed by a court of
  competent jurisdiction, the superintendent may  revoke  the  license  of
  such licensee or the registration of such registrant, or may suspend the
  same for such period as the superintendent determines.