General Laws

Section 214. (a) No person may act as a viatical settlement or loan provider, or as a viatical settlement or loan broker, without first having obtained a license from the commissioner. A viatical settlement or loan representative may act under the authority of the license of the viatical settlement or loan provider or viatical settlement or loan broker which appoints said representative. The appointment of a viatical settlement or loan representative must be registered with the commissioner, on a form prescribed by the commissioner, by the appointing viatical settlement or loan provider or viatical settlement or loan broker. Application for a viatical settlement or loan provider license, or viatical settlement or loan broker license shall be made to the commissioner by the applicant on a form prescribed by the commissioner, and the application shall be accompanied by a fee in an amount equal to the fee prescribed for each license or renewal thereof to an insurance agent of any company under section 163, as determined annually by the commissioner of administration under the provision of section 3B of chapter 7. Licenses may be renewed from year to year, on the anniversary date, upon payment of the annual renewal fee in an amount equal to the fee for renewal of each license to an insurance agent of any company under section 163, as determined annually by the commissioner of administration under said section 3B. Failure to pay the fee within the terms prescribed shall result in the expiration of the license.

(b) The applicant shall provide such information as the commissioner may require on forms prescribed by the commissioner. The commissioner shall have authority, at any time, to require the applicant to fully disclose the identity of all stockholders, partners, members, officers and employees. The commissioner may, in the exercise of discretion, refuse to issue a license in the name of any firm, partnership or corporation if not satisfied that any officer, employee, stockholder, member, or partner thereof, who may materially influence the applicant’s conduct, meets the standards of sections 212 to 223, inclusive.

(c) Applicants for licenses and licensees seeking renewal of a license shall be required to demonstrate that they have had sufficient education and training to be qualified to act as viatical settlement or loan providers or viatical settlement or loan brokers. The commissioner may promulgate regulations regarding the standards of education and training necessary to obtain and renew a license, and the procedure for meeting those standards.

(d) A license issued to a partnership, corporation, limited liability company or other entity authorizes all members, officers and designated employees to act as viatical settlement or loan providers, viatical settlement or loan brokers, or viatical settlement or loan representatives, as applicable, under the license, and all those persons must be named in the application and any supplements to the application.

(e) Upon the filing of an application and the payment of the license fee, the commissioner shall make an investigation of each applicant and may issue a license if the commissioner finds that the applicant:

(1) has provided a detailed plan of operation;

(2) is suitable, competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for;

(3) has a good business reputation so as to be qualified in the business for which the license is applied for;

(4) has met the standards of education and training established by the commissioner pursuant to sections 212 to 223, inclusive; and

(5) if a legal entity, provides a certificate of good standing from its state of domicile.

The commissioner shall not issue any license to any nonresident applicant, unless a written designation of an agent for service of process is filed and maintained with the commissioner or the applicant has filed with the commissioner the applicant’s written irrevocable consent that any action against the applicant may be commenced against the applicant by service of process on the commissioner.