Current through Register Vol. XLI, No. 38, September 20, 2024
3.1. A person shall not
operate as a viatical settlement provider without first obtaining a license from the
Commissioner pursuant to W. Va. Code §
33-13C-3
and this rule.
3.2. A person must submit
the following to obtain a license to act as a viatical settlement provider in this
state:
3.2.a. A fully completed Viatical
Settlement Provider Application (VSP-2);
3.2.b. A $600.00 non-refundable application
fee;
3.2.c. A certificate of good
standing from state of domicile;
3.2.d.
A West Virginia business license;
3.2.e.
A copy of the last certified public accountant audit and if any, the latest
financial and market conduct examination reports from the state of
domicile;
3.2.f. An unaudited financial
statement for the most recent quarter;
3.2.g. Evidence of a minimum equity of not less
than $250,000 in cash or cash equivalents reflected in the applicant's audited
financial statements or through a surety bond executed and issued by an insurer
authorized to issue bond in this state in the amount of $250,000;
3.2.h. A detailed plan of operations;
3.2.i. An anti-fraud plan that meets the
requirements of W. Va. Code §
33-13C-14;
3.2.j. National Association of Insurance
Commissioners' UCAA biographical affidavit for each individual, member, officer or
principal owner (ownership of ten percent or more of the company) of applicant and
each person to be authorized to act under the license;
3.2.k. If the applicant is a member of a holding
company system, submit an organizational chart which depicts the affiliate
relationships among the members. "Affiliate" means a person that directly or
indirectly through one or more intermediaries is controlled by or is under common
control with the member specified. "Control" shall be presumed to exist if any
person directly or indirectly owns, controls, holds with the power to vote or holds
proxies representing collectively ten percent or more of the voting securities of
any other person;
3.2.l. Samples of all
forms the provider uses or plans to use to enter into viatical settlement contracts
with viators and viator application forms;
3.2.m. Samples of all advertising and other
solicitation materials the provider plans to use in the state; and
3.2.n. Samples of all informational
brochures.
3.3. An incomplete
application, as determined by the commission, that remains incomplete four months
from the date filed will be considered withdrawn and a new application and
application fee will be required.
3.4. A
viatical settlement provider license must be renewed annually by payment of $300 on
or before the thirty-first day of May next following the date of issuance. If a
viatical settlement provider fails to pay the renewal fee, the nonpayment shall
result in a lapse of the license. A viatical settlement provider that allows its
license to lapse may, within twelve months from the due date of the renewal fee,
reinstate the same license, however, a penalty in the amount of $300 shall be
required for any renewal fee received after the due date.
3.5. If a viatical settlement provider has, at the
time of renewal, viatical settlement contracts where the insured has not died, it
shall do one of the following:
3.5.a. Renew or
maintain its current license status until the earlier of the following events:
3.5.a.1. The date the viatical settlement provider
properly assigns, sells or otherwise transfers the viatical settlement contract
where the insured has not died; or
3.5.a.2. The date that the last insured covered by
viatical settlement contract has died.
3.5.b. Appoint, in writing, either the viatical
settlement provider that entered into the viatical settlement contract, the broker
who received commissions from the viatical settlement contract, if applicable, or
any other viatical settlement provider or broker licensed in this state to make all
inquiries to the viator, or the viator's designee, regarding health status of the
insured or any other matters.
3.6. A license issued to a legal entity pursuant
to W.Va. Code §
33-13C-3
and subsection 3.2 of this rule authorizes all partners, officers, members and
designated employees to act as viatical settlement providers under the license and
all those persons shall be named in the application and any supplements to the
application.
