2006 Utah Code - 31A-36-104 — License requirements, revocation, and denial.

     31A-36-104.   License requirements, revocation, and denial.
     (1) (a) A person may not, without first obtaining a license from the commissioner, operate in or from this state as:
     (i) a provider of viatical settlements; or
     (ii) a producer of viatical settlements.
     (b) Viatical settlements are included within the scope of the life insurance producer line of authority.
     (2) (a) To obtain a license as a provider of viatical settlements, an applicant shall:
     (i) comply with Section 31A-23a-117;
     (ii) file an application; and
     (iii) pay the license fee.
     (b) If an applicant complies with Subsection (2)(a), the commissioner shall investigate the applicant and issue a license if the commissioner finds that the applicant is competent and trustworthy to engage in the business of providing viatical settlements by experience, training, or education.
     (3) In addition to the requirements in Sections 31A-23a-111, 31A-23a-112 and 31A-23a-113, the commissioner may refuse to issue, suspend, revoke, or refuse to renew the license of a provider of viatical settlements or producer of viatical settlements if the commissioner finds that:
     (a) a provider of viatical settlements demonstrates a pattern of unreasonable payments to viators;
     (b) the applicant or licensee, or an officer, partner, member, or key management personnel:
     (i) has, whether or not a judgment of conviction has been entered by the court, been found guilty of, or pleaded guilty or nolo contendere to:
     (A) a felony; or
     (B) a misdemeanor involving fraud or moral turpitude;
     (ii) violated any provision of this chapter; or
     (iii) has been subject to a final administrative action by another state or federal jurisdiction.
     (c) a provider of viatical settlements has entered into a viatical settlement not approved under this chapter;
     (d) a provider of viatical settlements has failed to honor obligations of a viatical settlement;
     (e) a provider of viatical settlements has assigned, transferred, or pledged a viaticated policy to a person other than:
     (i) a provider of viatical settlements licensed under this chapter;
     (ii) a purchaser of the viatical settlement;
     (iii) an accredited investor as defined in Regulation D, Rule 501, 17 C.F.R. Sec. 230.501;
     (iv) a qualified institutional buyer as defined in Rule 144A, 17 C.F.R. Sec. 230.144A;
     (v) a financing entity;
     (vi) a special purpose entity; or
     (vii) a related provider trust; or
     (f) a provider of viatical settlements has failed to maintain a standard set forth in Subsection (2)(b).

---

     (4) If the commissioner denies a license application or suspends, revokes, or refuses to renew the license of a provider of viatical settlements or producer of viatical settlements, the commissioner shall conduct an adjudicative proceeding under Title 63, Chapter 46b, Administrative Procedures Act.

Amended by Chapter 106, 2004 General Session