Current through Reg. 50, No. 13; March 28, 2025
(a) General form
filing requirement. A person must not use a form used to effectuate a life
settlement in this state unless the form has been filed with and approved by
the commissioner under this section, if prior approval is required by
subsection (f) of this section.
(b)
Required life settlement contract form filings. Forms that must be filed
include the following:
(1) settlement
contracts, including any amendments;
(3) verification of coverage forms;
(4) escrow or trust agreements;
(5) documents used to obtain or release
confidential information, including documents used by the life settlement
broker or provider that in any way refer to, affect, request, or relate to a
life settlement broker or provider obtaining or releasing confidential
information;
(7) power of attorney
forms;
(8) settlement
applications;
(9) premium finance
loan documents as specified in Insurance Code §
1111A.002(11)(B),
unless exempted by §1111A.002(11-A); and
(10) any other form used by a life settlement
broker or provider to effectuate a life settlement contract in this
state.
(c) Submission.
Licensees must submit one copy of forms as required by this section.
Non-electronic filings must be submitted to the Texas Department of Insurance,
Life and Health Division, Filings Intake, MC-LH-LHL, P.O. Box 12030, Austin,
Texas 78711-2030. A filing submitted electronically must be submitted through
the System for Electronic Rate and Form Filing. A person must hold a life
settlement broker's or provider's license issued by the department, have
authority to operate as a life settlement broker, or be authorized under
subsection (d)(2) of this section to submit forms.
(d) Transmittal checklist requirement. The
commissioner adopts by reference the Transmittal Checklist for Life/Health Rate
and Form Filings (revised May 2013) to be filed with and attached to forms
filed pursuant to subsection (c) of this section. The form may be obtained from
the Texas Department of Insurance, Life and Health Division, Filings Intake,
MC-LH-LHL, P.O. Box 12030, Austin, Texas 78711-2030 or by accessing the
department's website at www.tdi.texas.gov/forms. The transmittal checklist must
provide complete and accurate information about the filing, be signed by a duly
authorized representative or attorney of the life settlement broker or
provider, and include the following information:
(1) the name and license number of the
submitting life settlement broker or provider;
(2) a designated contact person for the
filing, including the individual's name, address, phone number, and, if
available, fax number, and email address. If the form filing is submitted by
anyone other than the life settlement broker or provider, the filing must
include an attachment executed by the life settlement broker or provider, or by
an officer of an entity, that designates the person submitting the filing as
the contact for that filing;
(3) a
list of all submitted forms and an explanation of the purpose and use of each
form;
(4) if applicable, a list of
the form numbers and approval dates of all previously reviewed forms with which
the submitted form will be used and a statement explaining when the submitted
form will be used;
(5) a
designation indicating the type of filing, as those types are described in
subsection (h) of this section; and
(6) any applicable information, attachments,
and certifications specified in this section.
(e) Specific form filing requirements. Forms
filed pursuant to this section are subject to the requirements set forth in
paragraphs (1) - (3) of this subsection.
(1)
Any form filed pursuant to this section must:
(A) prominently display the full name, home
office mailing address, and telephone number, and email address, if available,
of the life settlement broker or provider;
(B) include specimen language and specimen
fill-in material. A broker or provider is prohibited from including the
confidential information of any policy owner in the filed form. Fill-in lines,
blanks, and text boxes that are clearly titled with the information to be
filled in do not require specimen language;
(C) be submitted on 8-1/2-by-11-inch paper or
formatted for that size if submitted electronically. The department will not
accept bound forms;
(D) be
submitted in typewritten, computer-generated, or printer's proof format and be
clearly legible;
(E) include a
unique form number designation sufficient to distinguish it from all other
forms used by the life settlement broker or provider. The form number must be
located in the lower left-hand corner of the cover page or on the first page of
the form, if visible with the cover closed; and
(F) a designation indicating whether the form
is filed as file and use or review and approval prior to use as those
categories are described in subsection (f) of this section.
(2) A form filed under this
section may contain variable language, provided the variable language is both
bracketed and accompanied by a clear explanation of how the material will vary
and how it will be used.
(3) The
department will not accept handwritten forms or handwritten
corrections.
(f)
Categories for form filings.
(1) Review and
approval prior to use; deemer. A life settlement broker or provider must file
life settlement contract forms, disclosures, and verification of coverage forms
under this paragraph with the department not less than 60 days prior to the
life settlement broker's or provider's use or delivery of such form. After the
submission of a filing under this subsection, the life settlement broker or
provider may not use or deliver the form on or before 60 days from the date the
department receives the form unless the department approves the form during the
60-day period. If the department has not approved the form by the 60th day
after the date the department receives the form, the life settlement broker or
provider may deem the form approved only if:
(A) the life settlement broker or provider
has not requested an extension or waiver of the review period; and
(B) the department has not disapproved the
form.
(2) File and use.
A life settlement broker or provider may immediately use and deliver a form
filed under this category in this state until the department makes a request
for corrections or disapproves the form. A life settlement broker or provider
may file any other form identified in subsection (b)(4) - (10) of this section
under this paragraph. A filing under this category must include the information
and certifications specified in subsection (i)(1) and (2) of this section. Any
form that the department has previously disapproved pursuant to subsection (k)
of this section is not eligible for filing under this category.
(3) Forms approved prior to the effective
date of this section. Forms approved prior to the effective date of this
section must comply with this subchapter six months from the effective date of
this section.
(g)
Extension or waiver of review period. A request for extension of time for the
approval of a form must comply with paragraphs (1) - (5) of this subsection.
(1) A life settlement broker or provider may
request in writing an extension to the approval period for a form for an
additional period not to exceed 45 days.
(2) The department automatically grants a
timely request for extension under this section on the date it receives the
request.
(3) The department will
only grant one extension under this section.
(4) If the department grants an extension
under this section and does not affirmatively approve or disapprove the form
before the extended period expires, the form is considered approved on the
first day after the date the extended period expires.
(5) A life settlement broker or provider may
waive the deeming of the form filings.
(h) Types of form filings. The types of life
settlement contract form filings available for designation on the transmittal
checklist are as follows:
(1) New form. A
form that the department has not previously reviewed or approved under
Insurance Code §
1111A.005 and this
subchapter, except for a form withdrawn by a life settlement broker or provider
pursuant to paragraph (6) of this subsection.
(2) Informational form. A form submitted for
informational purposes only.
(3)
Substantially similar to a previously approved form. A form that is
substantially similar to a form that the department reviewed or approved on or
after the effective date of this subchapter. This type of form filing requires
the information and certification specified in subsection (i)(1), (2), and (4)
of this section.
(4) Exact copy. A
form that, except for the life settlement broker's or provider's name, address,
phone number, or other similar life settlement broker's or provider's
identification information, is an exact copy of a form the department reviewed
or approved on or after the effective date of this subchapter. This type of
form filing requires the information and certifications specified in subsection
(i)(1) and (4) of this section and is approved as of the date the department
receives it.
(5) Substitution for a
previously approved form. A form that is a substitute for a form the department
previously reviewed or approved on or after the effective date of this
subchapter for the same life settlement broker or provider, provided that the
broker or provider has not issued or otherwise used the previously reviewed or
approved form in Texas and will not use it in Texas at any time. This type of
form filing requires the information and certifications specified in subsection
(i)(1) and (4) of this section.
(6)
Correction to a pending form. A form containing corrections to a pending form
submitted subsequent to the life settlement broker or provider receiving
notification of the pending form's deficiencies from the department. This type
of form filing requires the information and certifications specified in
subsection (i)(1) and (5) of this section. The department must receive the
filing no later than 30 days following the date the life settlement broker or
provider receives written notification from the department of the form's
deficiencies. The department will consider the originally submitted form
withdrawn if it does not receive a corrected form within 30 days following the
date the notification of the form's deficiencies is sent. The department will
not approve or review a withdrawn form until the broker or provider refiles it
as a new form filing.
(7)
Resubmission of a previously disapproved form. A form containing corrections to
a form subsequent to the life settlement broker or provider receiving a
disapproval letter from the department. This type of form filing requires the
information and certifications specified in subsection (i)(1) and (7) of this
section.
(i)
Certifications, attachments, and other information. A life settlement broker or
provider must include in a filing the certifications, attachments, and other
information referred to in this section as follows:
(1) A life settlement broker or provider, or
the broker's or provider's duly authorized representative or attorney, filing
any form with the department must certify on the transmittal checklist that:
(A) the filer has reviewed and is familiar
with all applicable statutes and regulations of this state;
(B) the filer has reviewed the form filing;
and
(C) to the best of the filer's
knowledge and belief, the filed form complies in all respects with the
applicable statutes and regulations of this state.
(2) A life settlement broker or provider
filing a form as file and use under subsection (f)(2) of this section must, in
addition to providing the certification specified in paragraph (1) of this
subsection, certify that:
(A) no corrections
to the form have been requested by the department; and
(B) the form has not been previously
disapproved by the department.
(3) A life settlement broker or provider
filing a form as review and approval prior to use under subsection (f)(1) of
this section must, in addition to providing the certification specified in
paragraph (1) of this subsection, certify that it will not use the form until
the department approves it. If, following the 60th day from the date the
department receives the form, the life settlement broker or provider elects to
use, issue, or deliver such form prior to receiving approval from the
department, the life settlement broker or provider must have provided the
certifications specified in paragraphs (1) and (2) of this
subsection.
(4) A life settlement
broker or provider submitting a form under subsection (h)(3), (4), or (5) of
this section must provide the certification specified in paragraph (1) of this
subsection, in addition to the following information and certification:
(A) the form number and approval date of the
previously approved form, including the broker's or provider's name if
different from the submitting broker or provider;
(B) a summary of the differences between the
previously approved form and the submitted form, including a description of any
deleted text. The submitted form must clearly identify all changes, with new or
modified text underlined; and
(C) a
certification that the form contains no changes other than those
identified.
(5) A life
settlement broker or provider submitting a form pursuant to subsection (h)(6)
of this section must provide the certification specified in paragraph (1) of
this subsection, in addition to the following information and certification:
(A) the form number of the pending
form;
(B) the name of the
department's form review specialist who reviewed the form;
(C) the date of notification of any form
deficiencies;
(D) the tracking
number of the pending form assigned by the department;
(E) a summary of the differences between the
previously reviewed form and the corrected form, including a description of any
deleted text. The corrected form must clearly identify all changes, with new or
modified text underlined; and
(F) a
certification that the form contains no changes other than those
identified.
(6) A life
settlement broker or provider submitting a form pursuant to subsection (h)(5)
of this section must provide the certification specified in paragraph (1) of
this subsection and a certification that the broker or provider has not issued
or used the original version of the form in Texas and will not use it in Texas
at any time.
(7) A life settlement
broker or provider submitting a form pursuant to subsection (h)(7) of this
section must provide:
(A) a certification
specified in paragraph (1) of this subsection, as well as the information and
certifications specified in paragraph (5)(B), (D), (E), and (F) of this
subsection;
(B) the form number of
the disapproved form; and
(C) the
date of disapproval by the department.
(j) Forms not qualified for review. The
department will not accept for review and will return to the life settlement
broker or provider form filings that are not accompanied by a completed
transmittal checklist or that do not contain all required information or
certifications. No filing fees will be refunded.
(k) Disapproval or withdrawal of previous
approval; request for corrections. Form disapprovals, withdrawals of previous
approvals, and requests for corrections to filed forms subject to paragraphs
(1) and (2) of this subsection.
(1) The
department may disapprove, withdraw previous approval, or request that a life
settlement broker or provider make corrections of any form filed pursuant to
this section if the form:
(A) fails to comply
with any applicable statutes or regulations of this state;
(B) fails to meet any requirements of the
Insurance Code, including §§1111A.011, 1111A.012, 1111A.014, and
1111A.023(b);
(C) is unreasonable
or contrary to the interests of the public; or
(D) is otherwise misleading or unfair to the
owner.
(2) When the
department makes a request for corrections, disapproves a form, or withdraws
approval of a form pursuant to this section, the department may require that
the life settlement broker or provider discontinue using the form, replace the
form, or any other appropriate remedy available by law.
(l) Notification of approval or disapproval.
The department will provide written notification of any approval or disapproval
of any form filed under this section.
(m) Additional requested information. The
department may request any additional information necessary for a comprehensive
review of any form in accord with the requirements in Insurance Code Chapter
1111A.
(n) Request for hearing. The
life settlement broker or provider may make a written request for a hearing to
the Texas Department of Insurance, Chief Clerk, MC-GC-CCO, P.O. Box 12030,
Austin, Texas 78711-2030, on receiving notification under subsection (l) of
this section of any withdrawal of approval or disapproval of a form by the
department.
(o) Filing fees.
Applicable fees for filings made pursuant to this division are set forth in
paragraphs (1) - (4) of this subsection.
(1)
For filing a complete life settlement contract, including forms related to the
life settlement contract, a fee of $100.
(2) For filing life settlement contract forms
individually, a fee of $100 for each filing.
(3) For filing a resubmission of a previously
disapproved life settlement contract form, a fee of $50.
(4) For each refiling of a previously
withdrawn life settlement contact form, a fee of $50.