Vermont Statutes Title 8 Sec. 3837
Terms Used In Vermont Statutes Title 8 Sec. 3837
- Commissioner: means the Commissioner of Financial Regulation. See
- Contract: A legal written agreement that becomes binding when signed.
- Conviction: A judgement of guilt against a criminal defendant.
- Financing entity: includes an accredited investor as defined by Rule 501 as promulgated under the Federal Securities Act of 1933, as amended. See
- Fraud: Intentional deception resulting in injury to another.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Life settlement broker: means a natural person who is working exclusively on behalf of a policy owner and, for a fee, commission, or other valuable consideration, offers or attempts to negotiate life settlement contracts between an owner and one or more life settlement providers. See
- Life settlement contract: includes a premium finance loan made for a life insurance policy by a lender to a policy owner on, before, or after the date of issuance of the policy where:
- Life settlement provider: means a person other than a policy owner that solicits, enters into, or effectuates a life settlement contract with a policy owner resident in this State. See
- Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
- Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
- Policy: means an individual or group policy, group certificate, contract, or arrangement of life insurance owned by a resident of this State, regardless of whether delivered or issued for delivery in this State. See
- Related provider trust: means a titling trust or other trust established by a licensed life settlement provider or a financing entity for the sole purpose of holding the ownership or beneficial interest in purchased policies in connection with a financing transaction. See
- 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.
- Special purpose entity: means a corporation, partnership, trust, limited liability company, or other similar entity formed solely to provide either directly or indirectly access to institutional capital markets:
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
§ 3837. License revocation and denial
(a) Life settlement providers. The Commissioner may suspend or revoke and may refuse to issue or renew the license of a life settlement provider if the Commissioner finds that:
(1) there was any material misrepresentation in the application for the license;
(2) the licensee or any officer, partner, member, or key management personnel have been convicted of fraudulent or dishonest practices or are subject to a civil judicial adjudication under federal, foreign, or State law or to an administrative action issued by any jurisdiction showing the licensee or any officer, partner, member, or key management personnel to be untrustworthy or incompetent;
(3) the licensee demonstrates a pattern of unreasonable payments to policy owners;
(4) the licensee or any officer, partner, member, or key management personnel have been found guilty of or have pleaded guilty or nolo contendere to any felony or to a misdemeanor involving fraud or moral turpitude, regardless of whether a judgment of conviction has been entered by the court;
(5) the licensee has entered into any life settlement contract that has not been approved pursuant to this subchapter;
(6) the licensee has failed to honor contractual obligations set out in a life settlement contract;
(7) the licensee no longer meets the requirements for initial licensure;
(8) the licensee has assigned, transferred, or pledged a policy subject to a life settlement contract to a person other than a life settlement provider licensed in this state, an accredited investor or qualified institutional buyer as defined respectively in Rule 501(a) or Rule 144A promulgated under the Federal Securities Act of 1933, as amended, a financing entity, a special purpose entity, or a related provider trust;
(9) the licensee or any officer, partner, member, or key management personnel has violated any provision of this subchapter or a rule adopted or order issued under this subchapter;
(10) the licensee or any officer, partner, member, or key management personnel have violated any provision of 9 Vt. Stat. Ann. chapter 150 (the Vermont Uniform Securities Act); or
(11) the licensee has, in the conduct of his or her affairs, used fraudulent, coercive, or dishonest practices or has shown himself or herself to be incompetent, untrustworthy or financially irresponsible.
(b) Life settlement brokers. The Commissioner may refuse to issue or renew or may suspend or revoke the license of a life settlement broker if the Commissioner finds that:
(1) there was any material misrepresentation in the application for the license;
(2) the licensee has been convicted of fraudulent or dishonest practices or is subject to a civil judicial adjudication under federal, foreign, or State law or to an administrative action issued by any jurisdiction showing the licensee or any officer, partner, member, or key management personnel to be untrustworthy or incompetent;
(3) the licensee has been found guilty of or has pleaded guilty or nolo contendere to any felony or to a misdemeanor involving fraud, dishonesty, breach of trust, or moral turpitude, regardless of whether a judgment of conviction has been entered by the court;
(4) the licensee no longer meets the requirements for initial licensure;
(5) the licensee has engaged in any one or more of the acts or conditions set forth in subsection 4804(a) of this title;
(6) the licensee has violated any provision of this subchapter or a rule adopted or order issued under this subchapter;
(7) the licensee or any officer, partner, member, or key management personnel have violated any provision of 9 Vt. Stat. Ann. chapter 150 (the Vermont Uniform Securities Act); or
(8) the licensee has otherwise engaged in bad-faith conduct with one or more policy owners. (Added 2009, No. 53, § 1, eff. Jan. 1, 2010.)