SECTION 3.1722. Renewal; Nonrenewal; Surrender; Change of Information; and Fees

(a) Renewal form. To renew an unexpired life settlement provider's or broker's license, a license holder must submit to the department a completed Application for Renewal, Surrender, or Change of Information for a Life Settlement Provider or Broker form. The license holder must submit with the renewal application a two-year renewal fee of $50 for a life settlement broker license or $100 for a life settlement provider license. All renewal fees are nonrefundable and nontransferable.

(b) Renewal application requirements. In addition to the completed Application for Renewal, Surrender, or Change of Information for a Life Settlement Provider or Broker form, a license holder applying for renewal of a life settlement broker's license or provider's license must submit:

(1) if a business entity:

(A) a certificate of account status issued by the Texas Comptroller of Public Accounts reflecting that the licensee is in good standing or temporary good standing; or

(B) a certification signed by an officer or partner of the licensee attesting that the licensee is not subject to the Texas Tax Code Chapter 171; and

(2) if a life settlement broker, a certification that the life settlement broker and each owner, partner, director, member, officer, and designated employee named in the application or in any supplement to the application, who perform acts of a life settlement broker under Insurance Code §1111A.002(2), has completed training equivalent to that required of individual brokers under §3.1723 of this title (relating to Course and Training Requirements for Brokers), unless the individual is exempted under §3.1723(c) of this title or has been associated with the license holder for less than two years.

(c) Change in license information. If there is a material change to any information provided in the application for license, the life settlement broker or provider must submit written notification of the change to the department not later than 30 days after the date such change occurs, using the Application for Renewal, Surrender, or Change of Information for a Life Settlement Provider or Broker form. This requirement applies to material changes in information that occur after the license has been issued and during which time the license remains valid and unexpired.

(1) A life settlement broker or provider notifying the department of a change in information must provide the notice separately from any other submission of information to the department.

(2) Each life settlement broker and provider must keep the department informed of the licensee's current mailing, physical addresses, and email address (if any). The department will use the mailing and physical addresses on the most recent application or notification the life settlement broker or provider submitted to the department to communicate with and provide notices to the life settlement broker or provider.

(d) Additional licenses. If the department grants a licensee an additional life settlement broker or provider license, the expiration date of the license initially granted applies to all life settlement broker or provider licenses that the license holder subsequently obtains from the department.

(e) Effect of renewal application.

(1) Continuance of license until approved or refused. On filing the completed renewal application and payment of the proper fee, the life settlement broker's or provider's current unexpired license will continue in force until the department renews the license or makes a final determination to refuse to renew the license, as provided in Insurance Code §1111A.004 and Government Code §2001.054, and provides notice of such refusal in writing to the license holder.

(2) Expiration for not more than 90 calendar days. If the life settlement broker's or provider's license has been expired for not more than 90 calendar days, the life settlement broker or provider may apply to renew the license by sending a completed renewal application and fee, as applicable, and an additional fee equal to one-half of the required renewal fee.

(3) Expiration for more than 90 calendar days. If a life settlement broker or provider license has been expired for more than 90 calendar days, the life settlement broker or provider may not apply to renew the license. The life settlement broker or provider must obtain a new license by submitting a new application for a license and fee under §3.1721 of this title (relating to License Application; Fees).

(f) Surrender or nonrenewal of a provider's license. If a life settlement provider does not intend to renew or elects to surrender its license, the life settlement provider must request approval from the department by submitting the Application for Renewal, Surrender, or Change of Information for a Life Settlement Provider or Broker form. The department must receive the provider's written request for nonrenewal or surrender at least 30 days before the date the provider's current license expires or planned surrender date. A life settlement provider must apply for license renewal and cannot surrender or nonrenew an expiring license if a life settlement contract is executed in the 15 days prior to the nonrenewal or surrender of the license. Prior to expiration or surrender, the life settlement provider must submit a report containing all the information required by §3.1760 of this title (relating to Reporting Requirements) for all life settlement contracts executed in Texas for which the insured is a resident of Texas.

(g) Effect of license surrender. The surrender of a life settlement broker's or provider's license to the department is not a defense to a violation of the Insurance Code or this title committed by the life settlement broker or provider prior to the effective date of the surrender. In addition, surrendering to the department any or all life settlement licenses in no way affects the authority of the department or the commissioner to initiate or continue any investigation or disciplinary proceedings concerning the life settlement broker or provider.

(h) Insolvency. If a court of competent jurisdiction assumes control of or appoints a receiver to control and wind down the business operations of a life settlement broker or provider, and the commissioner determines that such waiver is in the public interest and is consistent with the requirements of the Insurance Code, the department may waive requirements specified in this section.

Source Note: The provisions of this §3.1722 adopted to be effective August 1, 2013, 38 TexReg 4357