The Florida Senate

626.9916  Viatical settlement broker license required; application for license.--

(1)  After July 1, 1996, a person, other than a life agent licensed under this chapter, may not perform the functions of a viatical settlement broker as defined in this act without first having obtained a license from the department.

(2)  Application for a viatical settlement broker license must be made to the department by the applicant on a form prescribed by the department, under oath, and signed by the applicant. The application must be accompanied by a $50 filing fee. If the applicant is a corporation, the application must be under oath and signed by the president and the secretary of the corporation.

(3)  In the application, the applicant must provide all of the following:

(a)  The applicant's full name, age, residence address, and business address, and all occupations engaged in by the applicant during the 5 years preceding the date of the application; if the applicant is not a natural person, the applicant must provide the information required by this paragraph with respect to all officers, directors, or partners.

(b)  A copy of the applicant's basic organizational documents, if any, including the articles of incorporation, articles of association, partnership agreement, trust agreement, or other similar documents, together with all amendments to such documents.

(c)  If the applicant is not a natural person, a list showing the name, business and residence addresses, and official position of each individual who is responsible for conduct of the applicant's affairs, including, but not limited to, any member of the applicant's board of directors, board of trustees, executive committee, or other governing board or committee and any other person or entity owning or having the right to acquire 10 percent or more of the voting securities of the applicant.

(d)  With respect to an individual applicant and with respect to each individual identified under paragraph (c):

1.  A sworn biographical statement on forms supplied by the department.

2.  A set of fingerprints on forms prescribed by the department, certified by a law enforcement officer, and accompanied by the fingerprinting fee specified in s. 624.501.

3.  Authority, if required by the department, for release of information relating to the investigation of the individual's background.

(e)  Such other information as the department deems necessary to determine that the individual applicant and the individuals identified under paragraph (c) are competent and trustworthy and can lawfully and successfully act as a viatical settlement provider.

(4)  Any natural person who is employed by or otherwise represents a viatical settlement broker licensee, which broker licensee is not a natural person, must also be licensed as a viatical settlement broker if such employee or other representative performs the functions of a viatical settlement broker as defined in this act.

(5)  The department may not issue a license to an applicant if it is not satisfied that the applicant, if a natural person, or all officers, directors, employees, stockholders, and partners who exercise or have the ability to exercise effective control of the applicant or who have the ability to influence the transaction of business by the applicant, if the applicant is not a natural person, meet the standards of this act and have not violated any provision of this act or rules of the department related to the business of viatical settlement contracts.

(6)  The department may specify the form of the license and may require photographing of the applicant as part of the application process.

(7)  Upon the filing of a sworn application and the payment of the license fee and all other applicable fees under this act, the department shall investigate each applicant and may issue the applicant a license if the department finds that the applicant:

(a)  Is competent and trustworthy and intends to act in good faith in the business authorized by the license applied for.

(b)  Has a good business reputation and has had experience, training, or education that qualifies the applicant to conduct the business authorized by the license applied for.

(c)  Except with respect to applicants for nonresident licenses, is a bona fide resident of this state and actually resides in this state at least 180 days a year. If an applicant holds a similar license or an insurance agent's or broker's license in another state at the time of applying for a license under this section, the applicant may be found to meet the residency requirement of this paragraph only after he or she furnishes a letter of clearance satisfactory to the department or other proof that the applicant's resident licenses have been canceled or changed to nonresident status and that the applicant is in good standing with the licensing authority.

(d)  Is a corporation, a corporation incorporated under the laws of this state, or a foreign corporation authorized to transact business in this state.

(e)  Has designated the Insurance Commissioner and Treasurer as its agent for service of process.

(8)  An applicant for a nonresident viatical settlement broker license must, in addition to designating the Insurance Commissioner and Treasurer as agent for service of process as required by this section, also furnish the department with the name and address of a resident of this state upon whom notices or orders of the department or process affecting the applicant or licensee may be served. After issuance of the license, the licensee must also notify the department of change of the person to receive such notices, orders, or process; such change is not effective until acknowledged by the department.

(9)  Beginning July 1, 1997, the department may, by rule, specify experience, educational, or other training standards required for licensure under this section.

(10)  Except as otherwise provided in this section, viatical settlement brokers shall be licensed, appointed, renewed, continued, reinstated, and terminated in the manner specified in this chapter for insurance representatives generally; however, viatical settlement brokers are not subject to continuing education requirements.

History.--s. 7, ch. 96-336; s. 23, ch. 97-93.