Current through Register Vol. 63, No. 9, September 1, 2024
(1) Any person, other than the owner of a
life insurance policy, that enters into or effectuates a life settlement
contract with an owner who is a resident of Oregon must obtain a life
settlement provider license from the Department of Consumer and Business
Services.
(2) In order for an
applicant to qualify for authority to transact business as a life settlement
provider the person must do all of the following:
(a) Demonstrate evidence of financial
responsibility as follows:
(A) The applicant's
assets must exceed its liabilities by an amount of not less than
$150,000;
(B) The applicant must
file with the Department of Consumer and Business Services a surety bond in the
sum of $100,000 that meets the requirements of ORS
731.640; or
(C) The applicant must deposit with the
Department of Consumer and Business Services the sum of $100,000 in cash,
certificates of deposit or securities, or any combination of cash, certificates
of deposit or securities.
(b) Submit a detailed plan of operation with
the application that includes a description of the method for retaining records
as required under ORS
744.346.
(c) Provide an anti-fraud plan that includes
initiatives reasonably calculated to detect, prosecute and prevent fraudulent
life settlement acts. The anti-fraud plan must include but need not be limited
to:
(A) A provision for use of fraud
investigators;
(B) A description of
the procedures for detecting and investigating possible fraudulent life
settlement acts and procedures to resolve material inconsistencies between
medical records and insurance applications;
(C) Procedures for reporting possible
fraudulent life settlement activities to the director;
(D) A plan for anti-fraud education and
training of the provider's staff and employees; and
(E) A description or organizational chart of
the personnel responsible for implementing and maintaining the integrity of the
anti-fraud plan.
(d)
Demonstrate that procedures are in place to prevent any person convicted of a
felony involving dishonesty or breach of trust to participate in the life
settlement operations of the applicant.
(3) As a condition of maintaining a license
to act as a life settlement provider, a life settlement provider must do all of
the following:
(a)
(A) At all times maintain assets that exceed
its liabilities by an amount of not less than $150,000; or
(B) At all times maintain with the Department
of Consumer and Business Services a surety bond or the deposit of cash,
certificates of deposit or securities. The surety bond, cash or securities must
meet the requirements of ORS
731.640 and must be in the sum
of $100,000.
(b) Pay the
annual provider renewal fee as specified in OAR
836-014-0210; and
(c) Submit to the Department of Consumer and
Business Services a completed license renewal application on the form
prescribed by the Department, not later than the 30th day after the anniversary
date of the life settlement provider's license.
(4) A bond filed or deposit made in this
state under this rule shall be held for the faithful performance by the life
settlement provider of all transactions of the provider subject to ORS
744.319 to
744.358.
(5) A life settlement provider license does
not eliminate the need to obtain a securities license from the Department if a
life settlement provider conducts life settlement transactions in a manner that
would be considered an offer, sale, transfer or delivery of a security under
the Oregon Securities Law.
Stat. Auth.: ORS
731.244,
744.358
Stats. Implemented: ORS
744.328
