Current through all regulations passed and filed through September 16, 2024
(A) Purpose
The purpose of this rule is to provide standards for applicants
applying for initial licensure as a viatical settlement broker in this state or
a renewal of a previously issued license and to the registration of insurance
agents operating as a viatical settlement broker. This rule also provides form
filing requirements and fees for licenses, renewals, and form approvals.
(B) Authority
This rule is promulgated under the authority granted the
superintendent of insurance pursuant to sections
3901.011,
3901.041,
3901.19
to
3901.26,
3916.05,
and
3916.20 of the Revised
Code.
(C) Applicability and
scope
This rule applies to all persons applying for or renewing a
license or who are currently licensed as a viatical settlement broker in this
state and to all persons licensed as a life insurance agent registering or
registered to operate as a viatical settlement broker in this state.
(D) Definitions
The definitions from Chapter 3916. of the Revised Code are
incorporated by reference herein. The following are terms used in this
rule:
(1) "Applicant" means a person
who is applying to be licensed or applying to renew a license as a viatical
settlement broker.
(2) "Incidental"
means, for the purpose of a licensed life insurance agent acting as a viatical
settlement broker under the statutory exception set forth in division (C)(2) of
section
3916.02
of the Revised Code, executing not more than five viatical settlement contracts
within any annual registration period.
(3) "Home state" means the state or territory
of the United States, including the District of Columbia, in which an insurance
agent or viatical settlement broker maintains the life insurance agent's or
viatical settlement broker's principal place of residence or principal place of
business and is licensed to act as an insurance agent or viatical settlement
broker.
(4) "Insurance agent" shall
have the same meaning as is set forth in division
(F) of section
3905.01
of the Revised Code.
(5) "License"
means the authority issued by the superintendent to a person to act as an
insurance agent with a life insurance line of authority or as a viatical
settlement broker, but that does not create any actual, apparent, or inherent
authority in the person to represent or commit an insurer.
(6) "Life line of authority" means authorized
in this state to sell life insurance products under an agent license in
accordance with division (B)(1) of section
3905.06
of the Revised Code.
(7) "Person"
means an individual or a business entity.
(8) "Registered life insurance agent" means
an insurance agent who meets the standards set forth in division (C)(2) of
section
3916.02
of the Revised Code and who has registered, as set forth in this rule, with the
superintendent of insurance. The registered life insurance agent may operate as
a viatical settlement broker in this state, provided that the agent's viatical
settlement broker activities are incidental to the agent's regular life
insurance business activities as defined in this rule.
(9) "Viatical settlement broker activities"
means engaging in the viatication of one or more life policies, as defined by
division (J) of section
3916.01
of the Revised Code, for compensation, on behalf of a viator or policy owner
who resides in this state.
(E) Initial license requirements for viatical
settlement broker applicants
(1) Applicants
shall submit a complete application, on a form prescribed by the
superintendent.
(2) An application
shall not be considered complete until the superintendent receives the
application completed in its entirety, required attachments, and the applicable
fee.
(3) If the superintendent
determines that an application is incomplete and will not be considered for
licensure, the applicant shall be notified.
(4) All fees paid, as set forth in this rule
are non-refundable and non-transferable.
(5) An individual viatical settlement broker
license whose license has expired, and who applies for and is issued a new
viatical settlement broker license within one year of the prior license
expiration, shall be assigned the same "Viatical Settlement Continuing
Education" (VSE) compliance period that the individual was assigned for the
individual's previous viatical settlement broker license.
(a) In order to qualify for a new viatical
settlement broker license after the expiration of a previous viatical
settlement broker license, the individual viatical settlement broker applicant
must complete all of the VSE credit requirements that were not completed prior
to the expiration of the individual's previous viatical settlement broker
license; and
(b) The viatical
settlement broker applicant must provide proof of completion of the required
number of approved VSE credits by submitting documentation acceptable to the
superintendent such as course completion certificates and/or course
rosters;
(c) The viatical
settlement broker applicant must pay the VSE extension fee, if any VSE credits
were taken beyond the previous VSE compliance period deadline date. The VSE
extension fee is in addition to any application fees;
(d) The effective date of the new viatical
settlement broker license for applicants whose previous viatical settlement
license expired within one year of the date of the new application for a
license shall be the date that the department processes and approves the
license application.
(F) Renewal requirements for all licensed
viatical settlement brokers
(1) A license as a
viatical settlement broker expires on March thirty-first of the year following
the initial issuance or the continuance of a previously renewed
license.
(2) To apply to renew a
license to operate as a viatical settlement broker in this state, the applicant
shall submit a viatical settlement broker renewal application on a form
prescribed by the superintendent, completed in its entirety, all required
attachments, and the applicable renewal fee.
(3) If the superintendent determines that an
application is incomplete and will not be considered for licensure, the
applicant shall be notified.
(4)
The superintendent shall not renew the license of an individual licensed as a
viatical settlement broker if the licensee has not completed the required
continuing education within the licensee's assigned biennial compliance period
or approved extension period, except in the case of an extension granted
pursuant to paragraph (H)(1) in rule
3901-9-03
of the Administrative Code for medical disability or special
circumstance.
(5) The
superintendent shall not renew the license of a viatical settlement business
entity broker unless the licensee has one actively licensed individual viatical
settlement broker designated as the individual who is responsible for the
licensee's compliance with the laws of this state.
(G) Use of assumed name by viatical
settlement brokers, registered life insurance agents and licensed life
insurance agents acting as a viatical settlement broker under the exception set
forth in division (C)(2) of section
3916.02
of the Revised Code
(1) A viatical settlement
broker, registered life insurance agent, or licensed insurance agents acting as
a viatical settlement broker under the exception set forth in division (C)(2)
of section
3916.02
of the Revised Code shall use only the name that appears on the broker's or
agent's license, except:
(a) A viatical
settlement broker, registered life insurance agent, or licensed insurance agent
acting as a viatical settlement broker under the exception set forth in
division (C)(2) of section
3916.02
of the Revised Code that intends to do business in this state under any name
other than the name that appears on the broker's or agent's license shall
notify the superintendent in writing prior to using the assumed name in this
state.
(b) Viatical settlement
brokers, registered life insurance agents, and licensed insurance agents acting
as a viatical settlement broker under the exception set forth in division
(C)(2) of section
3916.02
of the Revised Code shall include the name appearing on the broker's or agent's
license in all advertisements, correspondence, and other documents used by the
broker or agent in this state.
(H) Registration and requirements for a life
insurance agent to operate as a viatical settlement broker under the exception
to the viatical settlement broker licensing set forth in division (C)(2) of
section
3916.02
of the Revised Code and is defined in this rule as a registered agent.
(1) Any individual life insurance agent who
intends to operate in this state as a viatical settlement broker and meets the
requirements of division (C)(2) of section
3916.02
of the Revised Code shall register annually with the superintendent of
insurance as a registered life insurance agent on a form designated for that
purpose by the superintendent.
(2)
Registered life insurance agent registrations expire on March thirty-first of
each succeeding year unless the agent submits a new registration form to the
superintendent prior to the expiration date each year.
(3) The superintendent shall cancel a
licensed insurance agent's registered life insurance agent registration upon
the occurrence of the following events:
(a)
The registered life insurance agent is granted a viatical settlement broker
license in this state; or
(b) The
registered life insurance agent no longer meets the requirements of division
(C)(2) of section
3916.02
of the Revised Code.
(4)
Registered life insurance agents are exempt from the continuing education
requirements set forth in section
3916.03
of the Revised Code. Registered life insurance agents are not prohibited from
attending such continuing education courses.
(5) A registered life insurance agent is only
permitted to provide viatical settlement broker services when such activity is
incidental to the insurance agent's business activities as defined in this
rule.
(6) Registered life insurance
agents shall use only forms that have been previously filed by licensed
viatical settlement brokers or viatical settlement providers and approved by
the superintendent for use in this state.
(7) All individual life insurance agents
acting as viatical settlement brokers under the exemption set forth in division
(C)(2) of section
3916.02
of the Revised Code and all registered life insurance agents as defined in this
rule are subject to the provisions of Chapter 3916. of the Revised Code and the
rules promulgated thereunder.
(I) Form filings by licensed viatical
settlement brokers
(1) If a license is issued,
and before the licensee can conduct business in this state, the licensee shall
submit the forms required to be filed pursuant to division (A) of section
3916.05
of the Revised Code and obtain approval from the superintendent for use in this
state.
(2) Forms shall not be
accepted for filing and approval until after a viatical settlement broker
license has been issued.
(3) Forms
shall not be accepted for filing from individual life insurance agents acting
as viatical settlement brokers under the exception set forth in division (C)(2)
of section
3916.02
of the Revised Code or from registered life insurance agents as defined in this
rule. All individual life insurance agents acting as viatical settlement
brokers and registered life insurance agents under this exception shall use
only forms that have been filed by licensed viatical settlement providers and
licensed viatical settlement brokers and have been approved by the
superintendent for use in this state.
(J) Fees for viatical settlement brokers
(1) Viatical settlement broker initial
application fees.
The filing fee for the initial application to be licensed as a
viatical settlement broker is two hundred dollars.
(2) Viatical settlement broker renewal
application fees.
The filing fee for an application for renewal is one hundred
dollars.
(3) The fee for an
extension request of VSE credit requirements within the allowable VSE extension
period or for completing any VSE credit requirements that were not completed
prior to the end of the VSE compliance period of the expired viatical
settlement broker license is one hundred dollars.
(4) The fee for a new form filing is fifty
dollars per filing.
(K)
Penalties
A violation of this rule is an unfair and deceptive trade
practice under sections
3901.19
to
3901.26
of the Revised Code and a violation of Chapter 3916. of the Revised Code. In
addition, a violation of section
3916.02
of the Revised Code is a third degree felony pursuant to section
3916.99 of the Revised
Code.
(L) Severability
If any paragraph, subparagraph, term, or provision of this rule
be adjudged invalid for any reason, such judgment shall not affect, impair, or
invalidate any other paragraph, subparagraph, term, or provision of this rule,
but the remaining paragraphs, subparagraphs, terms, and provisions shall be and
continue in full force and effect.
