Compilation of Rules and Regulations of the State of Georgia
Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER
Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE
Subject 120-2-93 - LIFE SETTLEMENTS REGULATION
Rule 120-2-93-.07 - General Rules

(1) A provider shall comply with the requirements of this Chapter and O.C.G.A. §§ 33-59-1et seq. and shall not engage and or deal with any person to perform the functions of a life settlement broker as defined at O.C.G.A. § 33-59-2(10) unless such person holds a current, valid registration as a life settlement broker.

(2) Any person or life settlement broker shall comply with the requirements of this Chapter and O.C.G.A. §§ 33-59-1et seq. and shall not present a policy to, solicit bids or offers from, engage and or deal with any person or entity to perform the functions of a provider as defined at O.C.G.A. § 33-59-2(18) unless such person or entity holds a current, valid license as a provider.

(3) Any fee paid by a provider, party, individual, or an owner to a life settlement broker in exchange for services provided to the owner pertaining to a life settlement contract shall be computed as a percentage of the offer obtained, not the face value of the policy.

(4) No person shall enter into a life settlement contract during a two-year period commencing with the date of issuance of the policy unless the owner provides the provider with the certification required under O.C.G.A. § 33-59-11(n)(1) or the owner submits to the provider the independent evidence required pursuant to O.C.G.A. § 33-59-11(n)(2).

(5) It is a violation of this chapter for any person, provider, life settlement broker, or any other party related to the business of life settlements to commit a fraudulent life settlement act, including but not limited to, stranger originated life insurance.

(6) Within three business days after receipt from the owner of documents to effect the transfer of the insurance policy, the provider shall pay the proceeds of the settlement to an escrow or trust account managed by a trustee or escrow agent in a state or federally chartered financial institution pending acknowledgement of the transfer by issuer of the policy. The trustee or escrow agent shall be required to transfer the proceeds due to the owner within three business days of acknowledgement of the transfer from the insurer.

(7) All life settlement contracts shall provide that the owner may rescind the contract on or before 15 days after the date it is executed by all parties thereto. If rescission is exercised by the owner, all proceeds, premiums, loans, etc. must be repaid and notice given within the rescission period. If the owner dies during the rescission period subject to all repayments having been made, the contract is deemed to have been rescinded.

(8) Pursuant to O.C.G.A. § 33-59-14(c)(1), any person engaged in the business of life settlements shall notify the Enforcement Division of the Commissioner's office if he or she has knowledge or a reasonable belief that a fraudulent life settlement act is being, has been or will be committed. Notification can be made by telephone, electronic or written communication.

(9) No person shall engage in the business of life settlements unless they have obtained the appropriate license; applied for, or received the appropriate registration; or have been designated as an authorized representative by a properly licensed or registered entity on a form prescribed by the Commissioner. A violation of this section shall be considered an unfair trade practice and a felony.