Current through Register Vol. 63, No. 12, December 1, 2024
(1) A
life settlement broker may not seek or obtain any compensation from the
policyholder or certificate holder without the written agreement of the
policyholder or certificate holder obtained before the broker performs any
services in connection with the life settlement.
(2)
(a)
Unless convicted of a felony as described in section 17(2), chapter 711, Oregon
Laws 2009 (Enrolled Senate Bill 973), a life insurance producer meets the
licensing requirements of this section and is permitted to operate as a life
settlement broker in this state if the producer has been duly licensed:
(A) As a resident insurance producer with a
life line of authority in this state for at least one year; or
(B) In the producer's home state for at least
one year and is licensed as a nonresident producer in this state.
(b) A life insurance producer
qualified to operate as a life settlement broker under this section must:
(A) Not later than 30 days from the date the
producer first acts as a life settlement broker, submit an application for a
life settlement broker license;
(B)
Have in place an anti-fraud plan as required by section 17(10), chapter 711,
Oregon Laws 2009 (Enrolled Senate Bill 973); and
(C) Comply with all other requirements of ORS
744.319 to
744.358 pertaining to acting as
a life settlement broker.
(3) A life settlement broker may not also be
licensed as a life settlement investment agent.
(4) The anti-fraud plan required under this
rule must include initiative 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 broker'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.
(f) A
demonstration 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.
Stat. Auth.: ORS
744.358
Stats. Implemented: ORS
744.358,
744.323, Sec. 17, Ch. 711, OL
2009
