Terms Used In Rhode Island General Laws 27-72-16

• Broker: means a person who, on behalf of an owner and for a fee, commission or other valuable consideration, offers or attempts to negotiate life settlement contracts between an owner and provider. See Rhode Island General Laws 27-72-2
• Business of life settlements: means an activity involved in, but not limited to, offering to enter into, soliciting, negotiating, procuring, effectuating, monitoring, or tracking, of life settlement contracts. See Rhode Island General Laws 27-72-2
• Commissioner: means the director of the department of business regulation or his or her designee. See Rhode Island General Laws 27-72-2
• Fraud: Intentional deception resulting in injury to another.
• Fraudulent life settlement act: includes :

  (i)  Acts or omissions committed by any person who, knowingly and with intent to defraud, for the purpose of depriving another of property or for pecuniary gain, commits, or permits its employees or its agents to engage in acts including, but not limited to:

  (A)  Presenting, causing to be presented, or preparing with knowledge and belief that it will be presented to or by a provider, premium finance lender, broker, insurer, insurance producer, or any other person, false material information, or concealing material information, as part of, in support of, or concerning a fact material to one or more of the following:

  (I)  An application for the issuance of a life settlement contract or insurance policy;

  (II)  The underwriting of a life settlement contract or insurance policy;

  (III)  A claim for payment or benefit pursuant to a life settlement contract or insurance policy;

  (IV)  Premiums paid on an insurance policy;

  (V)  Payments and changes in ownership or beneficiary made in accordance with the terms of a life settlement contract or insurance policy;

  (VI)  The reinstatement or conversion of an insurance policy;

  (VII)  In the solicitation, offer to enter into, or effectuation of a life settlement contract, or insurance policy;

  (VIII)  The issuance of written evidence of a life settlement contract or insurance;

  (IX)  Any application for or the existence of or any payments related to a loan secured directly or indirectly by any interest in a life insurance policy; or

  (X)  Entering into any practice or plan that involves stranger originated life insurance (STOLI). See Rhode Island General Laws 27-72-2

• Person: means any natural person or legal entity including, but not limited to, a partnership, limited liability company, association, trust, or corporation. See Rhode Island General Laws 27-72-2
• Provider: means a person, other than an owner, who enters into or effectuates a life settlement contract with an owner. See Rhode Island General Laws 27-72-2
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.

History of Section.
P.L. 2009, ch. 195, § 1; P.L. 2009, ch. 262, § 1.