New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 4 - ACTUARIAL SERVICES
Subchapter 35 - VIATICAL SETTLEMENTS
Section 11:4-35.4 - Viatical settlement provider's license application

Universal Citation: NJ Admin Code 11:4-35.4

Current through Register Vol. 56, No. 24, December 18, 2024

(a) A first time applicant for a viatical settlement provider's license shall submit the following:

1. An Admission Application including the payment of a nonrefundable application fee of $ 1,000 by check or money order made payable to State of New Jersey--General Treasury;

2. A copy of its charter or articles of incorporation as currently in force, certified by the lawful custodian of the original document;

3. A copy of its bylaws as currently in force, certified by a senior officer of the corporation;

4. Six copies of the current audited annual financial statements including all supplemental exhibits and holding company organizational chart;

5. If assets include insurance policies, a valuation of those policies certified by an actuary who is a member of the American Academy of Actuaries or the Society of Actuaries;

6. For foreign corporations, completed and executed forms:
i. Appointing the Commissioner as attorney for service of process; and

ii. Irrevocably consenting to the jurisdiction of the Commissioner and the New Jersey courts;

7. For publicly traded corporations, any Federal and/or State securities filings made within the past year;

8. A statement of ownership of the applicant which shall include all shareholders of record who control five percent or more of the outstanding shares of the applicant, directly or indirectly;

9. A copy of any agreements by which the right to conduct or influence any of the affairs of the applicant is transferred to others;

10. Any employment or deferred compensation agreements in which any officer, director or shareholder who controls five percent or more of the outstanding shares of the applicant, directly or indirectly, participates;

11. Any tender offer materials (advertisements, invitations, etc.), if any tender offer has been made by the corporation or its parent to acquire another company within the prior three years preceding;

12. Biographical affidavits, to be completed by all directors, senior officers and any shareholder of record who controls five percent or more of the outstanding shares of the corporation, directly or indirectly;

13. A schedule listing the following:
i. All jurisdictions from which the applicant has withdrawn during the prior 10 years and the reasons for withdrawal; and

ii. All administrative, civil or criminal actions, orders, proceedings and determinations thereof to which the applicant, or its affiliates, or any of its directors, principal officers and/or any shareholder of record who controls five percent or more of the outstanding shares of the corporation, directly or indirectly, have been subject in any jurisdiction during the prior 10 years. If an insurance or viatical license has been refused, suspended or revoked by any jurisdiction, the applicant shall furnish an explanation and a copy of any orders, proceedings, and determinations related thereto;

14. A corporate plan of operation consisting of a description of the applicant's present business plan(s) for conducting viatical business, including, but not limited to:
i. States in which business will be conducted;

ii. Marketing methods shall describe how the applicant advertises and markets its business in general. The plan of operation shall describe how the applicant contacts and communicates with individuals/viators, and explain how marketing representatives and other individuals who have direct contact with clients/viators are recruited, trained and compensated;

iii. Submission of a copy of all advertising or solicitation materials that the applicant uses or plans to use to attract potential viators, or to otherwise market, promote or publicize its business or services;

iv. Materials provided to viator shall explain in detail what information is provided to the viator and by whom concerning the following subjects (attach and describe any related written material provided to the viator not already attached in response to previous sections of this application):
(1) The catastrophic or life-threatening nature of the viator's illness;

(2) The viatical settlement contract;

(3) The benefits of the viator's life insurance policy; and

(4) The release of medical records;

v. An explanation of the applicant's procedures for keeping all medical information confidential. The applicant shall attach and describe form letters, form medical releases, or other formatted written material used for this purpose;

vi. Financing strategy, including a description of controls in place to ensure that the strategy is followed;

vii. Any criteria or limitation on size and quantity of policies shall be explained. For example, is there a limit on the aggregate limit on one life? If so, what is the limit? Is there a cap on total exposures on all lives? If so, what is the cap?

viii. Details of the provider's procedures for detecting and investigating possible fraudulent acts and/or material inconsistencies related to the viatical transaction and the insurance policy to be viated;

ix. A description of the applicant's proposed plan for conducting a viatical business in this State (if it differs from (a)14i through viii above);

x. A summary of arrangements with insurers to transfer risk, indicating the name of the insurers, retentions, maximum risks, types of business, types of agreements;

xi. Copies of all management, exclusive agency, administrative services, or any other operating contracts with insurers and affiliates of applicant, where applicable, signed by the parties and certified to by the viatical provider's secretary and chief operating officer;

15. Identity of the financial institution where an escrow or trust account will be established pursuant to N.J.S.A. 17B:8d and identity of the independent trustee or agent; and

16. A certificate of good standing from the state of domicile and from the New Jersey Secretary of State.

(b) The application and applicable fees shall be sent to:

Viatical Settlement Provider Licensing

New Jersey Department of Banking and Insurance

20 West State Street

PO Box 325

Trenton, NJ 08625-0325

(c) Upon approval by the Commissioner of an application for a viatical settlement provider's license, and before issuance of the license, the applicant shall deposit with the Commissioner securities, as defined at and pursuant to the provisions of N.J.S.A. 17B:18-37 and 38 and N.J.A.C. 11:2-32, having a market value of $ 100,000, in satisfaction of the financial accountability requirement set forth at N.J.S.A. 17B:30A-9d.

Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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