California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 12.9 - Life Settlements
Section 2548.7 - Revocation of License; Denial of Application
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
The Commissioner shall have the right to suspend or revoke a license of any provider or broker, or deny a life settlement license application if the Commissioner finds that:
(a) the licensee or applicant has knowingly or willingly made any material misrepresentation in the application for a license;
(b) the licensee or applicant has been convicted of a felony or misdemeanor under the laws of the United States or any state therein, or a public offense having as one of its necessary elements a fraudulent act, or an act of dishonesty in acceptance, custody, or payment of money or property;
(c) the licensee or applicant has violated any provisions of title 10 of the California Code of Regulations, or the California Insurance Code, including but not limited to, failure to remit on a timely basis license renewal fees, or failure to file a complete annual statement;
(d) the licensee or applicant has permitted anyone in his or her employ to violate title 10 of the California Code of Regulations or the California Insurance Code;
(e) the licensee or applicant has shown incompetency or untrustworthiness in the conduct of any business, or has by commission of a wrongful act or practice in the course of any business exposed the public or those dealing with him to the danger of loss;
(f) the licensee or applicant has engaged in a fraudulent life settlement act or practice within the meaning of subdivision (g) of section 10113.1 of the Insurance Code or has conducted any business in a dishonest manner;
(g) the licensee or applicant has knowingly misrepresented the terms or effect of a life settlement contract;
(h) the licensee or applicant has been refused a professional, occupational, or vocational license, or had such license suspended or revoked by any licensing authority for the reasons that should preclude the granting of the license applied for;
(i) the licensee no longer meets the qualification for a license to transact life settlement business;
(j) the licensee or applicant transacts life settlement business with an unlicensed company or individual when a license is required;
(k) the licensee or applicant has aided or abetted any person in the act or omission which would constitute grounds for the suspension, revocation or refusal of a license issued by the Commissioner to the person aided or abetted;
(l) the provider or applicant has failed to honor contractual obligations set out in a life settlement contract;
(m) the provider has failed to set up an escrow account pursuant to section 2548.6 of these regulations; or,
(n) it is otherwise contrary to the interest of the public to license the applicant or continue licensing the licensee.
1. New section
filed 12-22-2006; operative 1-21-2007 (Register 2006, No. 51).
2.
Repealer and new section filed 7-29-2010 as an emergency; operative 7-29-2010.
Emergency regulation shall remain in effect, not to be repealed by the Office of
Administrative Law, unless repealed by the Department of Insurance pursuant to
Insurance Code section
10113.35
(Register 2010, No. 31).
3. Change without regulatory effect amending
NOTE filed 1-24-2012 pursuant to section
100, title 1, California Code of
Regulations (Register 2012, No. 4).
4. Renumbering of former section
2548.7 to new section
2548.9 and new section 2548.7 filed
11-25-2014; operative 1-1-2015 (Register 2014, No.
48).
Note: Authority cited: Section 10113.35, Insurance Code; CalFarm Ins. Co. v. Deukmejian, 48 Cal.3d 805 (1989); 20th Century Ins. Co. v. Garamendi, 8 Cal.4th 216 (1994). Reference: Sections 10113.2 and 10113.3, Insurance Code.
