S T A T E   O F   N E W   Y O R K
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    S. 9                                                        A. 9

                     Twentieth Extraordinary Session

                      S E N A T E - A S S E M B L Y

                            November 16, 2009
                               ___________

IN  SENATE -- Introduced by Sen. BRESLIN -- (at request of the Governor)
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Rules

IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M.  of
  A.  Morelle, Spano, Weprin, Robinson, Fields, Destito, Hayes, Latimer,
  John) -- (at request of the Governor) -- read once and referred to the
  Committee on Insurance

AN ACT to amend the insurance law, in relation to the licensure of  life
  settlement  brokers  and life settlement providers; to amend the penal
  law, in relation to life settlement fraud; to amend the  banking  law,
  in relation to premium finance agreements; and to repeal article 78 of
  the insurance law relating to viatical settlements

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (a) of section 308  of  the  insurance  law,  as
amended  by  chapter  11  of  the  laws  of  2008, is amended to read as
follows:
  (a) (1) The superintendent may also address to any health  maintenance
organization,  LIFE SETTLEMENT PROVIDER, LIFE SETTLEMENT INTERMEDIARY OR
ITS OFFICERS, OR any authorized insurer or rate service organization, or
officers thereof, any inquiry in relation to its transactions or  condi-
tion  or  any matter connected therewith. Every corporation or person so
addressed shall reply in writing to such inquiry promptly and  truthful-
ly,  and  such  reply  shall  be,  if  required  by  the superintendent,
subscribed by such individual, or by  such  officer  or  officers  of  a
corporation, as [he] THE SUPERINTENDENT shall designate, and affirmed by
them as true under the penalties of perjury.
  (2)  In  the  event  any corporation or person does not provide a good
faith response to an inquiry from the superintendent  pursuant  to  this
section  relating  to accident insurance, health insurance, accident and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12154-03-9
              

S. 9                                2                               A. 9

health insurance or health maintenance  organization  coverage  OR  WITH
RESPECT  TO  LIFE  SETTLEMENTS,  within  a  time period specified by the
superintendent of not less than fifteen business days,  the  superinten-
dent  is  authorized  to levy a civil penalty, after notice and hearing,
against such corporation or person not to exceed  five  hundred  dollars
per day for each day beyond the date specified by the superintendent for
response,  but in no event shall such penalty exceed seven thousand five
hundred dollars.
  S 2. Section 2101 of the insurance law is  amended  by  adding  a  new
subsection (v) to read as follows:
  (V)  IN  THIS ARTICLE, "LIFE SETTLEMENT BROKER" SHALL HAVE THE MEANING
CONTAINED IN SUBSECTION (J) OF SECTION SEVEN THOUSAND EIGHT HUNDRED  TWO
OF THIS CHAPTER.
  S  3.  Paragraph  1 of subsection (a) of section 2102 of the insurance
law, as amended by chapter 687 of the laws of 2003, is amended  to  read
as follows:
  (1) No person, firm, association or corporation shall act as an insur-
ance producer [or], insurance adjuster OR LIFE SETTLEMENT BROKER in this
state  without  having  authority to do so by virtue of a license issued
and in force pursuant to the provisions of this chapter.
  S 4. The section heading and subsections (a) and (b) of  section  2110
of the insurance law, as amended by chapter 687 of the laws of 2003, are
amended to read as follows:
  Revocation  or  suspension of license of insurance producer, insurance
consultant [or], adjuster OR LIFE SETTLEMENT BROKER. (a) The superinten-
dent may refuse to renew, revoke, or may suspend for a period the super-
intendent determines the license of any  insurance  producer,  insurance
consultant  [or],  adjuster  OR LIFE SETTLEMENT BROKER, if, after notice
and hearing, the superintendent determines  that  the  licensee  or  any
sub-licensee has:
  (1)  violated any insurance laws, or violated any regulation, subpoena
or order of the superintendent [of  insurance]  or  of  another  state's
insurance  commissioner, or has violated any law in the course of his OR
HER dealings in such capacity;
  (2) provided materially incorrect, materially  misleading,  materially
incomplete or materially untrue information in the license application;
  (3)  obtained  or  attempted  to obtain a license through misrepresen-
tation or fraud;
  (4)(A) used fraudulent, coercive or dishonest practices;
  (B) demonstrated incompetence;
  (C) demonstrated untrustworthiness; or
  (D) demonstrated financial irresponsibility in the conduct of business
in this state or elsewhere;
  (5) improperly withheld, misappropriated or converted  any  monies  or
properties  received  in  the  course of business in this state or else-
where;
  (6) intentionally misrepresented the terms of an  actual  or  proposed
insurance  contract,  LIFE SETTLEMENT CONTRACT or application for insur-
ance;
  (7) has been convicted of a felony;
  (8) admitted or been found to  have  committed  any  insurance  unfair
trade practice or fraud;
  (9)  had  an  insurance  producer  license,  A  LIFE SETTLEMENT BROKER
LICENSE, or its equivalent, denied, suspended or revoked  in  any  other
state, province, district or territory;

S. 9                                3                               A. 9

  (10)  forged  another's  name  to an application for insurance OR LIFE
SETTLEMENT CONTRACT or to any document related to an insurance  OR  LIFE
SETTLEMENT transaction;
  (11) improperly used notes or any other reference material to complete
an  examination  for  an  insurance  license  OR  LIFE SETTLEMENT BROKER
LICENSE;
  (12) knowingly accepted insurance business from an individual  who  is
not licensed;
  (13) failed to comply with an administrative or court order imposing a
child support obligation; [or]
  (14)  failed to pay state income tax or comply with any administrative
or court order directing payment of state income tax[.];
  (15) WHILE ACTING AS A LIFE SETTLEMENT BROKER, FAILED TO  PROTECT  THE
PRIVACY  OF  THE  INSURED  OR  OWNER  OR  OTHER PERSON FOR WHOM THE LIFE
SETTLEMENT BROKER WAS REQUIRED TO PROVIDE PROTECTION PURSUANT TO ARTICLE
SEVENTY-EIGHT OF THIS CHAPTER; OR
  (16) CEASED TO MEET THE REQUIREMENTS FOR LICENSURE UNDER THIS CHAPTER.
  (b) Before revoking or suspending the license of any insurance produc-
er, LIFE SETTLEMENT BROKER or other licensee pursuant to the  provisions
of this article, the superintendent shall, except when proceeding pursu-
ant  to  subsection (f) of this section, give notice to the licensee and
to every sub-licensee and shall hold, or cause to be held, a hearing not
less than ten days after the giving of such notice.
  S 5. The section heading of section  2119  of  the  insurance  law  is
amended and a new subsection (e) is added to read as follows:
  Insurance  agents,  brokers, consultants, AND LIFE SETTLEMENT BROKERS;
written contract for compensation; excess charges prohibited.
  (E)(1) NO PERSON LICENSED AS A LIFE SETTLEMENT BROKER MAY RECEIVE  ANY
COMPENSATION FOR EXAMINING, APPRAISING, REVIEWING OR EVALUATING ANY LIFE
SETTLEMENT  CONTRACT OR FOR MAKING RECOMMENDATIONS OR GIVING ADVICE WITH
REGARD TO SUCH CONTRACT; OR RECEIVE ANY COMPENSATION FROM ANY  OWNER  OR
PROPOSED  OWNER FOR OR ON ACCOUNT OF THE SOLICITATION OR NEGOTIATION OF,
OR OTHER SERVICES IN  CONNECTION  WITH,  ANY  LIFE  SETTLEMENT  CONTRACT
SUBJECT  TO  THIS  CHAPTER  OR FOR ANY OTHER SERVICES ON ACCOUNT OF SUCH
CONTRACT; UNLESS SUCH COMPENSATION IS BASED UPON  A  WRITTEN  MEMORANDUM
SIGNED BY THE PARTY TO BE CHARGED AND SPECIFYING OR CLEARLY DEFINING THE
AMOUNT  OR EXTENT OF SUCH COMPENSATION.  A COPY OF EVERY SUCH MEMORANDUM
SHALL BE RETAINED BY THE LICENSEE FOR NOT LESS THAN  THREE  YEARS  AFTER
SUCH SERVICES HAVE BEEN FULLY PERFORMED.
  (2)  NO  PERSON  LICENSED  AS A LIFE SETTLEMENT BROKER MAY RECEIVE ANY
COMPENSATION, DIRECT OR INDIRECT, FOR OR ON ACCOUNT OF THE  SOLICITATION
OR  NEGOTIATION  OF, OR OTHER SERVICES IN CONNECTION WITH A LIFE SETTLE-
MENT CONTRACT SUBJECT TO THIS CHAPTER FROM ANY PERSON FOR WHOM ANY  SUCH
LICENSEE  HAS  PERFORMED  ANY  RELATED  CONSULTING SERVICE FOR WHICH THE
LICENSEE HAS RECEIVED A FEE OR CONTRACTED TO RECEIVE A  FEE  WITHIN  THE
PRECEDING  TWELVE MONTHS UNLESS SUCH COMPENSATION IS PROVIDED FOR IN THE
WRITTEN  MEMORANDUM  REQUIRED  PURSUANT  TO  PARAGRAPH   ONE   OF   THIS
SUBSECTION.
  (3)  NO  PERSON  LICENSED  AS A LIFE SETTLEMENT BROKER MAY RECEIVE ANY
COMPENSATION, DIRECT OR INDIRECT, FROM A LIFE SETTLEMENT PROVIDER OR ANY
OTHER PERSON WITH RESPECT TO ANY LIFE SETTLEMENT CONTRACT  IF  THE  LIFE
SETTLEMENT  BROKER  HAS  ALREADY  RECEIVED OR WILL RECEIVE COMPENSATION,
DIRECT OR INDIRECT FROM, OR ON BEHALF OF, THE OWNER WITH RESPECT TO THAT
LIFE SETTLEMENT CONTRACT.

S. 9                                4                               A. 9

  S 6. Subsections (a) and (b) of section 2132 of the insurance law,  as
added  by  chapter  656  of  the  laws  of  1992, are amended to read as
follows:
  (a)  This  section  shall  apply  to resident and non-resident persons
licensed pursuant to this article with respect to [the  following  types
of insurance]:
  (1)  life insurance, annuity contracts, variable annuity contracts and
variable life insurance;
  (2) sickness, accident and health insurance; [and]
  (3) all lines of property and casualty insurance; AND
  (4) LIFE SETTLEMENTS.
  (b) This section shall not apply to:
  (1) those persons holding licenses for which  an  examination  is  not
required by the laws of this state; [or]
  (2) any limited licensees or any other licensees as the superintendent
may  exempt  subject  to  any  continuing  education requirements deemed
appropriate by the superintendent[.]; OR
  (3) FOR PURPOSES OF THE CONTINUING  EDUCATION  REQUIREMENTS  FOR  LIFE
SETTLEMENTS,  AN INSURANCE PRODUCER WITH A LIFE LINE OF AUTHORITY WHO IS
ACTING AS A LIFE SETTLEMENT BROKER PURSUANT TO SECTION TWO THOUSAND  ONE
HUNDRED THIRTY-SEVEN OF THIS ARTICLE.
  S  7.  The  insurance  law is amended by adding a  new section 2137 to
read as follows:
  S 2137. LIFE SETTLEMENT BROKERS; LICENSING.   (A)  THE  SUPERINTENDENT
MAY  ISSUE A LICENSE TO ANY INDIVIDUAL, FIRM, ASSOCIATION OR CORPORATION
WHO OR THAT HAS COMPLIED WITH THE REQUIREMENTS OF THIS CHAPTER,  AUTHOR-
IZING THE LICENSEE TO ACT AS A LIFE SETTLEMENT BROKER.
  (B)  ANY  SUCH LICENSE ISSUED TO A FIRM OR ASSOCIATION SHALL AUTHORIZE
ONLY THE MEMBERS THEREOF, NAMED IN SUCH LICENSE AS SUB-LICENSEES, TO ACT
INDIVIDUALLY AS LIFE SETTLEMENT BROKERS THEREUNDER, AND ANY SUCH LICENSE
ISSUED TO A CORPORATION SHALL AUTHORIZE ONLY THE OFFICERS AND  DIRECTORS
THEREOF, WHO ARE NAMED IN SUCH LICENSE AS SUB-LICENSEES, TO ACT INDIVID-
UALLY AS LIFE SETTLEMENT BROKERS THEREUNDER.  EVERY SUB-LICENSEE, ACTING
AS  A LIFE SETTLEMENT BROKER PURSUANT TO SUCH A LICENSE SHALL BE AUTHOR-
IZED SO TO ACT ONLY IN THE NAME OF THE LICENSEE.
  (C) EVERY INDIVIDUAL APPLICANT FOR A LICENSE UNDER  THIS  SECTION  AND
EVERY  PROPOSED  SUB-LICENSEE  SHALL BE EIGHTEEN YEARS OF AGE OR OVER AT
THE TIME OF THE ISSUANCE OF SUCH LICENSE.
  (D)(1) BEFORE ANY ORIGINAL LIFE SETTLEMENT BROKER'S LICENSE IS ISSUED,
THERE SHALL BE ON FILE IN THE OFFICE OF THE SUPERINTENDENT  AN  APPLICA-
TION  BY  THE  PROPOSED  LICENSEE IN SUCH FORM OR FORMS, AND SUPPLEMENTS
THERETO, AND CONTAINING INFORMATION THE SUPERINTENDENT  PRESCRIBES.  FOR
EACH  BUSINESS  ENTITY,  THE  SUB-LICENSEE OR SUB-LICENSEES NAMED IN THE
APPLICATION SHALL BE DESIGNATED RESPONSIBLE FOR  THE  BUSINESS  ENTITY'S
COMPLIANCE WITH THIS CHAPTER AND REGULATIONS PROMULGATED THEREUNDER. THE
APPLICANT  SHALL FULLY DISCLOSE THE IDENTITY OF ALL STOCKHOLDERS (EXCEPT
STOCKHOLDERS OWNING FEWER THAN TEN PERCENT OF THE  VOTING  SHARES  OF  A
LIFE  SETTLEMENT  BROKER  WHOSE  SHARES  ARE PUBLICLY TRADED), PARTNERS,
OFFICERS, MEMBERS, DIRECTORS AND PERSONS WITH A CONTROLLING INTEREST AND
THE  SUPERINTENDENT  MAY,  IN  THE  EXERCISE  OF  THE   SUPERINTENDENT'S
DISCRETION,  REFUSE  TO ISSUE A LICENSE IN THE NAME OF A LEGAL ENTITY IF
NOT SATISFIED THAT ANY EMPLOYEE, STOCKHOLDER, PARTNER, OFFICER,  MEMBER,
DIRECTOR  OR  PERSON  WITH  A CONTROLLING INTEREST THEREOF WHO MAY MATE-
RIALLY INFLUENCE THE APPLICANT'S CONDUCT MEETS  THE  STANDARDS  OF  THIS
ARTICLE  AND  ARTICLE  SEVENTY-EIGHT  OF THIS CHAPTER.   THEREAFTER, THE
APPLICANT AND, IF A LICENSE HAS BEEN ISSUED, THE LICENSEE, SHALL PROVIDE

S. 9                                5                               A. 9

TO THE SUPERINTENDENT NEW  OR  REVISED  INFORMATION  ABOUT  STOCKHOLDERS
(EXCEPT  STOCKHOLDERS OWNING FEWER THAN TEN PERCENT OF THE VOTING SHARES
OF A LIFE SETTLEMENT BROKER WHOSE SHARES ARE PUBLICLY TRADED), PARTNERS,
OFFICERS,  MEMBERS,  DIRECTORS  AND  PERSONS WITH A CONTROLLING INTEREST
WITHIN THIRTY DAYS OF  THE  CHANGE.    FOR  PURPOSES  OF  THIS  SECTION,
"CONTROLLING  INTEREST"  MEANS  A PERSON WHO DIRECTLY OR INDIRECTLY, HAS
THE POWER TO CAUSE TO BE DIRECTED THE MANAGEMENT, CONTROL OR  ACTIVITIES
OF SUCH LICENSEE.
  (2)  THE SUPERINTENDENT MAY REQUIRE ANY INDIVIDUAL NAMED IN THE APPLI-
CATION FOR SUCH LICENSE TO SUBMIT A SET  OF  FINGERPRINTS,  UNLESS  SUCH
APPLICANT  IS  LICENSED  AS  AN  INSURANCE  PRODUCER WITH A LIFE LINE OF
AUTHORITY. SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE DIVISION OF CRIM-
INAL JUSTICE SERVICES FOR A STATE  CRIMINAL  HISTORY  RECORD  CHECK,  AS
DEFINED  IN SUBDIVISION ONE OF SECTION THREE THOUSAND THIRTY-FIVE OF THE
EDUCATION LAW, AND MAY BE SUBMITTED TO THE FEDERAL  BUREAU  OF  INVESTI-
GATION  FOR  A NATIONAL CRIMINAL HISTORY RECORD CHECK. ALL SUCH CRIMINAL
HISTORY RECORDS SENT TO THE SUPERINTENDENT PURSUANT  TO  THIS  PARAGRAPH
SHALL BE CONFIDENTIAL PURSUANT TO THE APPLICABLE FEDERAL AND STATE LAWS,
RULES  AND  REGULATIONS,  AND  SHALL  NOT  BE  PUBLISHED  OR  IN ANY WAY
DISCLOSED TO PERSONS OTHER THAN  THE  SUPERINTENDENT,  UNLESS  OTHERWISE
AUTHORIZED BY LAW.  THE SUPERINTENDENT SHALL PROVIDE SUCH APPLICANT WITH
A  COPY  OF  HIS OR HER CRIMINAL HISTORY RECORD, IF ANY, TOGETHER WITH A
COPY OF ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW,  AND  INFORM  SUCH
APPLICANT OF HIS OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFOR-
MATION  CONTAINED  IN SUCH RECORD PURSUANT TO REGULATIONS AND PROCEDURES
ESTABLISHED BY THE DIVISION OF CRIMINAL JUSTICE SERVICES.  ALL  DETERMI-
NATIONS  TO  GRANT  OR  DENY  CLEARANCE  FOR  LICENSURE PURSUANT TO THIS
SECTION SHALL BE IN ACCORDANCE WITH SUBDIVISION SIXTEEN OF  SECTION  TWO
HUNDRED  NINETY-SIX  OF  THE EXECUTIVE LAW AND ARTICLE TWENTY-THREE-A OF
THE CORRECTION LAW.   WHEN THE  SUPERINTENDENT  DENIES  AN  APPLICATION,
WRITTEN  NOTICE  OF SUCH DETERMINATION SHALL BE GIVEN TO THE PROSPECTIVE
APPLICANT WHO SHALL BE AFFORDED NOTICE AND THE RIGHT  TO  BE  HEARD  AND
OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION.
  (E)  THE SUPERINTENDENT SHALL, IN ORDER TO DETERMINE THE COMPETENCY OF
EVERY INDIVIDUAL APPLICANT AND OF EVERY PROPOSED  SUB-LICENSEE  FOR  THE
LIFE  SETTLEMENT  BROKER LICENSE, REQUIRE SUCH INDIVIDUAL TO SUBMIT TO A
PERSONAL WRITTEN EXAMINATION AND TO PASS THE SAME TO THE SATISFACTION OF
THE SUPERINTENDENT. THE EXAMINATION SHALL BE  HELD  AT  SUCH  TIMES  AND
PLACES  AS  THE  SUPERINTENDENT SHALL FROM TIME TO TIME DETERMINE. EVERY
INDIVIDUAL APPLYING TO TAKE ANY WRITTEN EXAMINATION SHALL, AT  THE  TIME
OF APPLYING THEREFOR, PAY TO THE SUPERINTENDENT OR, AT THE DISCRETION OF
THE  SUPERINTENDENT, DIRECTLY TO ANY ORGANIZATION THAT IS UNDER CONTRACT
TO PROVIDE EXAMINATION SERVICES, AN EXAMINATION FEE OF AN AMOUNT THAT IS
THE ACTUAL DOCUMENTED ADMINISTRATIVE COST OF CONDUCTING SAID  QUALIFYING
EXAMINATION  AS  CERTIFIED  BY  THE SUPERINTENDENT FROM TIME TO TIME. AN
EXAMINATION FEE REPRESENTS AN ADMINISTRATIVE EXPENSE AND IS NOT REFUNDA-
BLE. THE SUPERINTENDENT MAY ACCEPT, IN LIEU OF ANY SUCH EXAMINATION, THE
RESULT OF ANY PREVIOUS WRITTEN EXAMINATION, GIVEN BY THE SUPERINTENDENT,
WHICH IN THE SUPERINTENDENT'S JUDGMENT, IS EQUIVALENT TO THE EXAMINATION
FOR WHICH IT IS SUBSTITUTED.  NO INDIVIDUAL SHALL BE DEEMED QUALIFIED TO
TAKE THE EXAMINATION UNLESS HE OR SHE SHALL HAVE SUCCESSFULLY  COMPLETED
A COURSE OR COURSES, APPROVED BY THE SUPERINTENDENT.
  (F)(1)  NO SUCH WRITTEN EXAMINATION OR PRELICENSING EDUCATION SHALL BE
REQUIRED:
  (A) OF ANY INSURANCE PRODUCER WITH A LIFE LINE OF  AUTHORITY  LICENSED
IN THIS STATE FOR AT LEAST ONE YEAR;

S. 9                                6                               A. 9

  (B)  IN  THE DISCRETION OF THE SUPERINTENDENT, OF ANY INDIVIDUAL WHOSE
LICENSE HAS BEEN REVOKED OR SUSPENDED;
  (C)  OF  ANY APPLICANT WHO HAS PASSED THE WRITTEN EXAMINATION GIVEN BY
THE SUPERINTENDENT FOR  A  LIFE  SETTLEMENT  BROKER'S  LICENSE  AND  WAS
LICENSED  AS SUCH, OR OF AN APPLICANT WHO WAS LICENSED AS A LIFE SETTLE-
MENT BROKER BUT DID NOT PASS SUCH AN EXAMINATION; PROVIDED THE APPLICANT
APPLIES WITHIN TWO YEARS FOLLOWING THE DATE OF TERMINATION OF THE APPLI-
CANT'S LICENSE;
  (D) IN THE DISCRETION OF THE SUPERINTENDENT, AS TO ALL OR ANY PART  OF
THE   WRITTEN  EXAMINATION  OR  THE  PREREQUISITE  COURSE  SPECIFIED  IN
SUBSECTION (E) OF THIS SECTION, OF ANY INDIVIDUAL SEEKING TO BE NAMED  A
LICENSEE  OR  SUB-LICENSEE,  UPON  WHOM HAS BEEN CONFERRED THE CHARTERED
LIFE UNDERWRITER (C.L.U.) OR CHARTERED LIFE UNDERWRITER ASSOCIATE DESIG-
NATION BY THE AMERICAN COLLEGE; OR
  (E) ANY INDIVIDUAL SEEKING TO BE NAMED A LICENSEE OR SUB-LICENSEE, WHO
IS A NONRESIDENT AND A LIFE SETTLEMENT BROKER OR WHO IS LICENSED  AS  AN
INSURANCE  PRODUCER  WITH  A  LIFE LINE OF AUTHORITY IN THE INDIVIDUAL'S
HOME STATE FOR AT LEAST ONE YEAR; PROVIDED, HOWEVER, THAT  THE  INDIVID-
UAL'S  HOME STATE GRANTS NONRESIDENT LICENSES TO RESIDENTS OF THIS STATE
ON THE SAME BASIS.
  (2) NO PRELICENSING EDUCATION SHALL  BE  REQUIRED  OF  ANY  INDIVIDUAL
REGULARLY  EMPLOYED BY A LIFE SETTLEMENT PROVIDER, LIFE INSURANCE COMPA-
NY, LIFE SETTLEMENT BROKER, OR AN INSURANCE PRODUCER WITH A LIFE LINE OF
AUTHORITY, FOR A PERIOD OR PERIODS AGGREGATING NOT LESS THAN  ONE  YEAR,
DURING  THE  THREE  YEARS  NEXT  PRECEDING THE DATE OF ENTRANCE INTO THE
SERVICE OF THE ARMED FORCES OF THE UNITED STATES OR IMMEDIATELY  FOLLOW-
ING  HIS  OR  HER DISCHARGE THEREFROM, IN RESPONSIBLE DUTIES RELATING TO
THE USE OF LIFE INSURANCE AND ANNUITY CONTRACTS IN THE DESIGN AND ADMIN-
ISTRATION OF PLANS FOR ESTATE CONSERVATION  AND  DISTRIBUTION,  EMPLOYEE
BENEFITS  AND  BUSINESS  CONTINUATION, AND SETTLEMENTS OF LIFE INSURANCE
AND ANNUITY CONTRACTS; PROVIDED THE  APPLICATION  FOR  SUCH  LICENSE  IS
FILED WITHIN ONE YEAR FOLLOWING THE DATE OF DISCHARGE, AND THE APPLICANT
SUBMITS WITH THE APPLICATION A STATEMENT SUBSCRIBED AND AFFIRMED AS TRUE
UNDER  THE  PENALTIES  OF  PERJURY BY SUCH EMPLOYER OR EMPLOYERS STATING
FACTS WHICH SHOW COMPLIANCE WITH THIS REQUIREMENT.
  (G) THE  SUPERINTENDENT  MAY  REFUSE  TO  ISSUE  ANY  LIFE  SETTLEMENT
BROKER'S  LICENSE  IF,  IN  THE  SUPERINTENDENT'S JUDGMENT, THE PROPOSED
LICENSEE OR ANY SUB-LICENSEE:  IS NOT TRUSTWORTHY AND COMPETENT  TO  ACT
AS  A  LIFE SETTLEMENT BROKER; HAS GIVEN CAUSE FOR LICENSE REVOCATION OR
SUSPENSION; OR HAS FAILED TO COMPLY WITH ANY PREREQUISITE FOR THE  ISSU-
ANCE OF SUCH LICENSE.
  (H)(1)   EVERY  LICENSE  ISSUED  TO  A  BUSINESS  ENTITY  PURSUANT  TO
SUBSECTION (A) OF  THIS  SECTION  SHALL  EXPIRE  ON  JUNE  THIRTIETH  OF
ODD-NUMBERED YEARS.
  (2) EVERY LICENSE ISSUED PURSUANT TO THIS SECTION TO AN INDIVIDUAL WHO
WAS BORN IN AN ODD-NUMBERED YEAR SHALL EXPIRE ON THE INDIVIDUAL'S BIRTH-
DAY  IN  EACH  ODD-NUMBERED  YEAR. EVERY LICENSE ISSUED PURSUANT TO THIS
SECTION TO AN INDIVIDUAL WHO WAS BORN IN  AN  EVEN-NUMBERED  YEAR  SHALL
EXPIRE  ON  THE  INDIVIDUAL'S BIRTHDAY IN EACH EVEN-NUMBERED YEAR. EVERY
SUCH LICENSE MAY BE RENEWED FOR THE ENSUING PERIOD OF TWENTY-FOUR MONTHS
UPON THE FILING OF AN APPLICATION IN CONFORMITY WITH THIS SUBSECTION.
  (3) THE LICENSE MAY BE ISSUED FOR ALL OF SUCH TWO-YEAR TERMS, OR  UPON
APPLICATION MADE DURING ANY SUCH TERM, FOR THE BALANCE THEREOF.
  (4)  ANY  LICENSE  SHALL  BE  CONSIDERED  IN  GOOD STANDING WITHIN THE
LICENSE TERM UNLESS:

S. 9                                7                               A. 9

  (A) REVOKED OR SUSPENDED BY THE SUPERINTENDENT PURSUANT TO THIS  ARTI-
CLE; OR
  (B)  IF AT THE EXPIRATION DATE OF THE LICENSE TERM, THE LICENSEE FAILS
TO FILE A RENEWAL APPLICATION, PROVIDED THE LICENSE WAS IN GOOD STANDING
DURING THE TERM.
  (5) BEFORE THE RENEWAL OF ANY LIFE SETTLEMENT BROKER'S  LICENSE  SHALL
BE ISSUED, THE LICENSEE SHALL HAVE:
  (A)  FILED  A COMPLETED RENEWAL APPLICATION IN SUCH FORM OR FORMS, AND
SUPPLEMENTS THERETO, AND CONTAINING SUCH INFORMATION AS THE  SUPERINTEN-
DENT MAY PRESCRIBE; AND
  (B)  PAID SUCH FEES AS ARE PRESCRIBED BY THE SUPERINTENDENT; PROVIDED,
HOWEVER, THAT SUCH FEE SHALL NOT EXCEED THAT WHICH IS REQUIRED  FOR  THE
LICENSING  OR  RENEWAL  FOR  AN  INSURANCE  PRODUCER WITH A LIFE LINE OF
AUTHORITY.
  (6) IF AN APPLICATION FOR A RENEWAL LICENSE SHALL HAVE BEEN FILED WITH
THE SUPERINTENDENT BEFORE THE  EXPIRATION  OF  SUCH  LICENSE,  THEN  THE
LICENSE  SOUGHT  TO  BE  RENEWED SHALL CONTINUE IN FULL FORCE AND EFFECT
EITHER UNTIL THE ISSUANCE BY THE SUPERINTENDENT OF THE  RENEWAL  LICENSE
APPLIED  FOR  OR  UNTIL  FIVE  DAYS  AFTER THE SUPERINTENDENT SHALL HAVE
REFUSED TO ISSUE SUCH RENEWAL LICENSE AND SHALL  HAVE  GIVEN  NOTICE  OF
SUCH REFUSAL TO THE APPLICANT AND TO EACH PROPOSED SUB-LICENSEE.  BEFORE
REFUSING  TO  RENEW ANY SUCH LICENSE, EXCEPT ON THE GROUND OF FAILURE TO
PASS A WRITTEN EXAMINATION, THE SUPERINTENDENT SHALL NOTIFY  THE  APPLI-
CANT  OF  THE  SUPERINTENDENT'S  INTENTION  TO  DO SO AND SHALL GIVE THE
APPLICANT A HEARING.
  (7)(A) THE SUPERINTENDENT MAY, IN ISSUING A RENEWAL LICENSE,  DISPENSE
WITH THE REQUIREMENTS OF A VERIFIED APPLICATION BY ANY INDIVIDUAL LICEN-
SEE  OR  SUB-LICENSEE  WHO,  BY  REASON OF BEING ENGAGED IN ANY MILITARY
SERVICE FOR THE UNITED STATES, IS UNABLE TO  MAKE  PERSONAL  APPLICATION
FOR  THE RENEWAL LICENSE, UPON THE FILING OF AN APPLICATION ON BEHALF OF
SUCH INDIVIDUAL, IN SUCH FORM AS THE SUPERINTENDENT SHALL PRESCRIBE,  BY
A  PERSON  WHO, IN THE PERSON'S JUDGMENT, HAS KNOWLEDGE OF THE FACTS AND
WHO MAKES AFFIDAVIT SHOWING SUCH MILITARY SERVICE AND THE  INABILITY  OF
THE LIFE SETTLEMENT BROKER TO MAKE PERSONAL APPLICATION.
  (B)  AN  INDIVIDUAL  LICENSEE  OR SUB-LICENSEE WHO IS UNABLE TO COMPLY
WITH LICENSE RENEWAL PROCEDURES DUE TO OTHER EXTENUATING  CIRCUMSTANCES,
SUCH  AS  A  LONG-TERM  MEDICAL DISABILITY, MAY REQUEST A WAIVER OF SUCH
PROCEDURES, IN SUCH FORM AS  THE  SUPERINTENDENT  SHALL  PRESCRIBE.  THE
LICENSEE  OR  SUB-LICENSEE  MAY ALSO REQUEST A WAIVER OF ANY EXAMINATION
REQUIREMENT OR ANY OTHER FINE OR SANCTION IMPOSED FOR FAILURE TO  COMPLY
WITH RENEWAL PROCEDURES.
  (8)  IN  ADDITION TO ANY EXAMINATION FEE REQUIRED BY SUBSECTION (E) OF
THIS SECTION, THERE SHALL BE PAID TO THE SUPERINTENDENT FOR  EACH  INDI-
VIDUAL  LICENSE  APPLICANT AND EACH PROPOSED SUB-LICENSEE A LICENSING OR
RENEWAL FEE TO BE DETERMINED BY THE  SUPERINTENDENT;  PROVIDED,  HOWEVER
THAT  SUCH FEE SHALL NOT EXCEED THAT WHICH IS REQUIRED FOR THE LICENSING
OR RENEWAL FOR AN INSURANCE PRODUCER WITH A LIFE LINE OF AUTHORITY.
  (9) AN APPLICATION FOR THE RENEWAL OF A LICENSE SHALL  BE  FILED  WITH
THE  SUPERINTENDENT  NOT  LESS  THAN  SIXTY  DAYS  PRIOR TO THE DATE THE
LICENSE EXPIRES OR THE APPLICANT SHALL BE SUBJECT TO A  FURTHER  FEE  OF
TEN DOLLARS FOR LATE FILING.
  (10)  NO  LICENSE  FEE SHALL BE REQUIRED OF ANY PERSON WHO SERVED AS A
MEMBER OF THE ARMED FORCES OF THE UNITED STATES  AT  ANY  TIME  AND  WHO
SHALL  HAVE  BEEN  DISCHARGED  THEREFROM,  UNDER  CONDITIONS  OTHER THAN
DISHONORABLE, IN A CURRENT LICENSING PERIOD, FOR THE  DURATION  OF  SUCH
PERIOD.

S. 9                                8                               A. 9

  (11)  EXCEPT  WHERE  A  CORPORATION, ASSOCIATION OR FIRM LICENSED AS A
LIFE SETTLEMENT BROKER IS APPLYING TO ADD A SUB-LICENSEE, THERE SHALL BE
NO FEE REQUIRED FOR THE ISSUANCE OF AN AMENDED LICENSE.
  (12)  THE LICENSE SHALL CONTAIN THE LICENSEE'S NAME, ADDRESS, PERSONAL
IDENTIFICATION NUMBER, THE DATE OF ISSUANCE, AND ANY  OTHER  INFORMATION
THE  SUPERINTENDENT  DEEMS  NECESSARY.  THE SUPERINTENDENT MAY ISSUE THE
LIFE SETTLEMENT BROKER'S LICENSE IN CONJUNCTION WITH ANY OTHER  LICENSE,
OR ITS RENEWAL, HELD BY THE APPLICANT.
  (I)  IF THE SUPERINTENDENT DEEMS IT NECESSARY, THEN THE SUPERINTENDENT
MAY REQUIRE ANY LICENSED LIFE SETTLEMENT BROKER TO SUBMIT A NEW APPLICA-
TION AT ANY TIME.
  (J) THE  SUPERINTENDENT  MAY  ISSUE  A  REPLACEMENT  FOR  A  CURRENTLY
IN-FORCE  LICENSE  THAT HAS BEEN LOST OR DESTROYED. BEFORE SUCH REPLACE-
MENT LICENSE SHALL BE ISSUED, THERE SHALL BE ON FILE IN  THE  OFFICE  OF
THE  SUPERINTENDENT  A WRITTEN APPLICATION FOR SUCH REPLACEMENT LICENSE,
AFFIRMING UNDER PENALTY OF PERJURY THAT THE ORIGINAL  LICENSE  HAS  BEEN
LOST OR DESTROYED, TOGETHER WITH A FEE OF FIFTEEN DOLLARS.
  S 8. Section 2401 of the insurance law is amended to read as follows:
  S  2401.  Purpose.  The  purpose  of this article is to regulate trade
practices in the business of insurance, INCLUDING THE BUSINESS  OF  LIFE
SETTLEMENTS,  in  accordance with the intent of congress as expressed in
Public Law 15, 79th Congress, by defining, or providing for the determi-
nation of, all such practices in  this  state  [which]  THAT  constitute
unfair  methods  of competition or unfair or deceptive acts or practices
and by prohibiting the trade practices so defined or determined.
  S 9. Subsections (a) and (b) of section 2402  of  the  insurance  law,
subsection  (b)  as  amended  by  chapter  631  of the laws of 2007, are
amended to read as follows:
  (a) "Person" means any individual and any legal entity subject to  any
provision  of this chapter, engaged in the business of insurance in this
state, including any reciprocal exchange or Lloyds insurer,  OR  IN  THE
BUSINESS OF LIFE SETTLEMENTS.
  (b)  "Defined  violation"  means  the commission by a person of an act
prohibited by: section one thousand two hundred fourteen,  one  thousand
two  hundred  seventeen,  one  thousand two hundred twenty, one thousand
three hundred thirteen, subparagraph (B) of paragraph two of  subsection
(i)  of  section one thousand three hundred twenty-two, subparagraph (B)
of paragraph two of subsection (i) of section one thousand three hundred
twenty-four, two thousand  one  hundred  twenty-two,  two  thousand  one
hundred  twenty-three,  subsection  (p)  of  section  two thousand three
hundred thirteen, section two thousand three  hundred  twenty-four,  two
thousand five hundred two, two thousand five hundred three, two thousand
five  hundred  four,  two  thousand  six  hundred  one, two thousand six
hundred two, two thousand six hundred three, two  thousand  six  hundred
four,  two  thousand  six hundred six, two thousand seven hundred three,
three  thousand  one  hundred   nine,   three   thousand   two   hundred
twenty-four-a,  three  thousand four hundred twenty-nine, three thousand
four hundred thirty-three, paragraph seven of subsection (e) of  section
three  thousand four hundred twenty-six, four thousand two hundred twen-
ty-four, four thousand two hundred twenty-five [or], four  thousand  two
hundred  twenty-six,  SEVEN  THOUSAND EIGHT HUNDRED NINE, SEVEN THOUSAND
EIGHT HUNDRED TEN, SEVEN THOUSAND EIGHT HUNDRED ELEVEN,  SEVEN  THOUSAND
EIGHT  HUNDRED THIRTEEN, SEVEN THOUSAND EIGHT HUNDRED FOURTEEN AND SEVEN
THOUSAND EIGHT HUNDRED FIFTEEN  of  this  chapter;  or  section  135.60,
135.65,  175.05,  175.45,  or 190.20, or article one hundred five of the
penal law.

S. 9                                9                               A. 9

  S 10. Subsection (c) of section 3220 of the insurance law  is  amended
to read as follows:
  (c)  (1)  Notwithstanding any provision of law, a person whose life is
insured under any policy of group life insurance, whether  or  not  such
policy  is  otherwise  subject  to this section, is permitted to make an
assignment of all or any part of his  incidents  of  ownership  in  such
insurance, including, without limitation, any right to designate a bene-
ficiary  or beneficiaries thereunder and any right to have an individual
policy issued upon termination either of employment or of said policy of
group life insurance, provided that the insurer and  the  group  policy-
holder  may  prohibit  or restrict such assignment by appropriate policy
provisions EXCEPT AS OTHERWISE  PROVIDED  IN  PARAGRAPH  THREE  OF  THIS
SUBSECTION.
  (2)  [This]  PARAGRAPH  ONE  OF  THIS subsection shall be construed as
declaring the law as it existed prior to its enactment and not as  modi-
fying it.
  (3)  A  GROUP  POLICY  THAT  PERMITS ASSIGNMENT OF AN INSURED PERSON'S
RIGHTS BY GIFT SHALL ALSO ALLOW ASSIGNMENT FOR VALUE TO THE SAME  EXTENT
THAT IT ALLOWS ASSIGNMENT BY GIFT.
  S 11. Article 78 of the insurance law is REPEALED and a new article 78
is added to read as follows:
                               ARTICLE 78
                            LIFE SETTLEMENTS
SECTION 7801. SHORT TITLE.
        7802. DEFINITIONS.
        7803. LICENSE REQUIREMENTS FOR LIFE SETTLEMENT PROVIDERS.
        7804. REGISTRATION  REQUIREMENTS  FOR  LIFE  SETTLEMENT INTERME-
                DIARIES.
        7805. LICENSE AND REGISTRATION REVOCATION.
        7806. LIFE SETTLEMENT CONTRACT FORMS.
        7807. REPORTING REQUIREMENTS.
        7808. EXAMINATIONS OR INVESTIGATIONS.
        7809. ADVERTISING.
        7810. PRIVACY.
        7811. DISCLOSURES TO OWNERS AND INSUREDS.
        7812. LIFE INSURANCE APPLICATIONS.
        7813. GENERAL RULES.
        7814. PROHIBITED PRACTICES.
        7815. STRANGER-ORIGINATED LIFE INSURANCE.
        7816. PENALTIES AND CIVIL REMEDIES.
        7817. AUTHORITY TO PROMULGATE REGULATIONS.
        7818. NONCONFORMING CONTRACTS.
        7819. APPLICABILITY AND CHOICE OF LAW.
        7820. SEVERABILITY.
  S 7801. SHORT TITLE.  THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED  AS
THE "LIFE SETTLEMENTS ACT".
  S 7802. DEFINITIONS. IN THIS ARTICLE:
  (A)  "ACCREDITED  INVESTORS" SHALL BE AS DEFINED IN REGULATION D, RULE
501 OF THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED.
  (B) "ADVERTISEMENT" MEANS ANY WRITTEN, ELECTRONIC OR PRINTED  COMMUNI-
CATION  OR  ANY COMMUNICATION BY MEANS OF RECORDED TELEPHONE MESSAGES OR
TRANSMITTED ON RADIO, TELEVISION, THE INTERNET OR SIMILAR COMMUNICATIONS
MEDIA, INCLUDING FILM STRIPS, MOTION  PICTURES  AND  VIDEOS,  PUBLISHED,
DISSEMINATED,  CIRCULATED OR PLACED BEFORE THE PUBLIC, DIRECTLY OR INDI-
RECTLY, FOR THE PURPOSE OF CREATING AN INTEREST IN OR INDUCING A  PERSON
TO PURCHASE, SELL, ASSIGN, DEVISE, BEQUEST OR TRANSFER THE DEATH BENEFIT

S. 9                               10                               A. 9

OR OWNERSHIP OF, A LIFE INSURANCE POLICY OR AN INTEREST IN A LIFE INSUR-
ANCE POLICY PURSUANT TO A LIFE SETTLEMENT CONTRACT.
  (C)(1) "BUSINESS OF LIFE SETTLEMENTS" MEANS AN ACTIVITY INVOLVING, BUT
NOT LIMITED TO, OFFERING TO ENTER INTO, SOLICITING, NEGOTIATING, PROCUR-
ING, EFFECTUATING, MONITORING, OR TRACKING LIFE SETTLEMENT CONTRACTS.
  (2) FOR PURPOSES OF THIS ARTICLE, "BUSINESS OF LIFE SETTLEMENTS" SHALL
ALSO INCLUDE:
  (A)  SUCH  ACTS  OR  TRANSACTIONS EFFECTUATED IN THIS STATE BY MAIL OR
OTHERWISE FROM OUTSIDE THIS STATE; AND
  (B) DOING OR PROPOSING TO DO ANY BUSINESS IN SUBSTANCE  EQUIVALENT  TO
THE  BUSINESS  OF  LIFE  SETTLEMENTS  IN  A MANNER DESIGNED TO EVADE THE
PROVISIONS OF THIS CHAPTER.
  (D) "COMPENSATION" MEANS ANYTHING OF VALUE, INCLUDING MONEY,  CREDITS,
LOANS,  INTEREST  ON  PREMIUM,  FORGIVENESS  OF  PRINCIPAL  OR INTEREST,
VACATIONS,  PRIZES,  GIFTS  OR  THE  PAYMENT  OF  EMPLOYEE  SALARIES  OR
EXPENSES, WHETHER PAID AS COMMISSION OR OTHERWISE.
  (E) "FINANCING ENTITY" MEANS AN ACCREDITED INVESTOR:
  (1)  WHOSE  PRINCIPAL  ACTIVITY  IN CONNECTION WITH THE TRANSACTION IS
PROVIDING FUNDS TO EFFECT THE LIFE SETTLEMENT CONTRACT  OR  TO  PURCHASE
ONE OR MORE POLICIES; AND
  (2) WHO HAS AN AGREEMENT IN WRITING WITH A LIFE SETTLEMENT PROVIDER TO
FINANCE THE ACQUISITION OF A LIFE SETTLEMENT CONTRACT.
  (F)  "FINANCING  TRANSACTION"  MEANS A TRANSACTION IN WHICH A LICENSED
LIFE SETTLEMENT PROVIDER OBTAINS  FINANCING  FROM  A  FINANCING  ENTITY,
INCLUDING  ANY SECURED OR UNSECURED FINANCING, ANY SECURITIZATION TRANS-
ACTION, OR ANY SECURITIES OFFERING WHICH IS REGISTERED  OR  EXEMPT  FROM
REGISTRATION UNDER FEDERAL AND STATE SECURITIES LAWS.
  (G)  "INSURED" MEANS A PERSON COVERED UNDER A POLICY THAT IS OR MAY BE
THE SUBJECT OF A LIFE SETTLEMENT CONTRACT.
  (H) "INSURER" MEANS A LIFE INSURANCE COMPANY OR  A  FRATERNAL  BENEFIT
SOCIETY.
  (I)  "LIFE  EXPECTANCY"  MEANS  THE  ARITHMETIC  MEAN OF THE NUMBER OF
MONTHS THE INSURED CAN BE EXPECTED TO  LIVE  TAKING  INTO  CONSIDERATION
MEDICAL RECORDS AND APPROPRIATE EXPERIENTIAL DATA.
  (J)  "LIFE  SETTLEMENT  BROKER"  MEANS A PERSON WHO, FOR COMPENSATION,
SOLICITS, NEGOTIATES OR OFFERS TO NEGOTIATE A LIFE SETTLEMENT  CONTRACT;
EXCEPT  THAT  SUCH  TERM  SHALL  NOT  INCLUDE A LICENSED LIFE SETTLEMENT
PROVIDER, OR REPRESENTATIVE THEREOF, LICENSED ATTORNEY AT LAW, CERTIFIED
PUBLIC  ACCOUNTANT,  OR  FINANCIAL  PLANNER  THAT  IS  ACCREDITED  BY  A
NATIONALLY RECOGNIZED ACCREDITATION AGENCY ACCEPTABLE TO THE SUPERINTEN-
DENT,  WHO  IS  RETAINED  IN  HIS OR HER PROFESSIONAL CAPACITY, DOES NOT
ADVERTISE AS BEING IN THE BUSINESS OF LIFE SETTLEMENTS  AND  IS  COMPEN-
SATED WITHOUT REGARD TO WHETHER A LIFE SETTLEMENT CONTRACT IS EFFECTUAT-
ED.
  (K)(1)  "LIFE SETTLEMENT CONTRACT" MEANS AN AGREEMENT ESTABLISHING THE
TERMS UNDER WHICH COMPENSATION IS PROVIDED TO AN  OWNER,  WHICH  COMPEN-
SATION  IS LESS THAN THE EXPECTED DEATH BENEFIT OF THE POLICY, IN RETURN
FOR THE ASSIGNMENT, TRANSFER, SALE, RELEASE, DEVISE OR  BEQUEST  OF  ANY
PORTION OF:
  (A) THE DEATH BENEFIT;
  (B) THE OWNERSHIP OF THE POLICY; OR
  (C)  ANY BENEFICIAL INTEREST IN THE POLICY, OR IN A TRUST OR ANY OTHER
ENTITY THAT OWNS THE POLICY, WHERE A PRIMARY PURPOSE OF THE  TRANSACTION
IS TO ACQUIRE THE POLICY.
  (2)  "LIFE  SETTLEMENT  CONTRACT"  SHALL INCLUDE AN AGREEMENT, ENTERED
INTO AFTER THE EFFECTIVE DATE OF THIS ARTICLE,  DESCRIBED  IN  PARAGRAPH

S. 9                               11                               A. 9

ONE  OF  THIS  SUBSECTION  REGARDLESS  OF  THE  DATE THE COMPENSATION IS
PROVIDED AND REGARDLESS OF THE  DATE  THE  ASSIGNMENT,  TRANSFER,  SALE,
DEVISE OR BEQUEST IS EFFECTUATED.
  (3) "LIFE SETTLEMENT CONTRACT" SHALL NOT INCLUDE:
  (A)  AN ASSIGNMENT OF A POLICY AS COLLATERAL FOR A LOAN BY ANY DEPOSI-
TORY INSTITUTION INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR
THE NATIONAL CREDIT UNION ADMINISTRATION;
  (B) AN ASSIGNMENT OF A POLICY AS COLLATERAL  FOR  A  LOAN  MADE  BY  A
LICENSED  FINANCIAL INSTITUTION UNDER WHICH THE LENDER TAKES AN INTEREST
IN A LIFE INSURANCE POLICY SOLELY TO SECURE REPAYMENT OF A LOAN  OR,  IF
THERE IS A DEFAULT ON THE LOAN AND THE POLICY IS TRANSFERRED, THE TRANS-
FER OF THE POLICY BY THE LENDER, PROVIDED THAT THE DEFAULT ITSELF IS NOT
PURSUANT  TO AN AGREEMENT OR UNDERSTANDING WITH ANY OTHER PERSON FOR THE
PURPOSE OF EVADING REGULATION UNDER THIS ARTICLE;
  (C) AN ASSIGNMENT OF A POLICY AS COLLATERAL FOR A LOAN MADE BY A LEND-
ER THAT DOES NOT VIOLATE ARTICLE TWELVE-B OF THE BANKING LAW;
  (D) THE MAKING OF A POLICY LOAN, OR THE PAYING OF  SURRENDER  BENEFITS
OR  OTHER BENEFITS, BY THE ISSUER OF A POLICY WITH RESPECT TO THAT POLI-
CY;
  (E) AN EXCHANGE OF LIFE INSURANCE POLICIES IN A TRANSACTION  DESCRIBED
BY SECTION 1035 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED;
  (F)  AN  AGREEMENT  MADE  BY  AN  INDIVIDUAL  TO  TAKE  AN ASSIGNMENT,
PURCHASE, OR OTHERWISE RECEIVE THE DEATH BENEFIT  OR  OWNERSHIP  OF  ANY
PORTION OF A POLICY OR POLICIES ON THE LIFE OF A SINGLE INSURED OR LIVES
OF  JOINT  INSUREDS;  PROVIDED  THAT, IN A CALENDAR YEAR, THE INDIVIDUAL
ENTERS INTO NO OTHER AGREEMENT  TO  TAKE  AN  ASSIGNMENT,  PURCHASE,  OR
OTHERWISE  RECEIVE  THE  DEATH  BENEFIT OR OWNERSHIP OF ANY PORTION OF A
POLICY OR POLICIES ON THE LIFE OF ANY OTHER  INSURED  OR  LIVES  OF  ANY
OTHER JOINT INSUREDS;
  (G)  AN  AGREEMENT  TO ASSIGN, TRANSFER OR PLEDGE A SETTLED POLICY, OR
ANY INTEREST THEREIN, TO A LICENSED LIFE SETTLEMENT PROVIDER, AN ACCRED-
ITED  INVESTOR  OR  QUALIFIED  INSTITUTIONAL  BUYER,  FINANCING  ENTITY,
SPECIAL PURPOSE ENTITY, OR RELATED PROVIDER TRUST;
  (H)  AN  AGREEMENT  WHERE  ALL  THE PARTIES ARE CLOSELY RELATED TO THE
INSURED BY BLOOD OR LAW OR HAVE A LAWFUL SUBSTANTIAL  ECONOMIC  INTEREST
IN  THE  CONTINUED LIFE, HEALTH AND BODILY SAFETY OF THE PERSON INSURED,
OR ARE TRUSTS ESTABLISHED PRIMARILY FOR THE BENEFIT OF SUCH PARTIES;
  (I) ANY DESIGNATION, CONSENT OR AGREEMENT BY  AN  INSURED  WHO  IS  AN
EMPLOYEE OF AN EMPLOYER IN CONNECTION WITH THE PURCHASE BY THE EMPLOYER,
OR  TRUST  ESTABLISHED BY THE EMPLOYER, OF LIFE INSURANCE ON THE LIFE OF
THE EMPLOYEE;
  (J) A BONA FIDE BUSINESS SUCCESSION PLANNING ARRANGEMENT BETWEEN:
  (I) ONE OR MORE SHAREHOLDERS IN A CORPORATION OR BETWEEN A CORPORATION
AND ONE OR MORE OF ITS SHAREHOLDERS OR ONE OR MORE TRUSTS ESTABLISHED BY
ITS SHAREHOLDERS;
  (II) ONE OR MORE PARTNERS IN A PARTNERSHIP OR  BETWEEN  A  PARTNERSHIP
AND ONE OR MORE OF ITS PARTNERS OR ONE OR MORE TRUSTS ESTABLISHED BY ITS
PARTNERS; OR
  (III)  ONE OR MORE MEMBERS IN A LIMITED LIABILITY COMPANY OR BETWEEN A
LIMITED LIABILITY COMPANY AND ONE OR MORE OF ITS MEMBERS OR ONE OR  MORE
TRUSTS ESTABLISHED BY ITS MEMBERS;
  (K)  LEGITIMATE  CORPORATE  OR PENSION BENEFIT PLANS, AS DETERMINED BY
THE SUPERINTENDENT; OR
  (L) ANY OTHER AGREEMENT THAT THE SUPERINTENDENT DETERMINES IS SUBSTAN-
TIALLY SIMILAR TO ANY OF THE FOREGOING.

S. 9                               12                               A. 9

  (L) "LIFE SETTLEMENT INTERMEDIARY" MEANS A  PERSON  WHO  MAINTAINS  AN
ELECTRONIC  OR  OTHER  FACILITY OR SYSTEM, FOR THE DISCLOSURE, THROUGH A
FORUM OF OFFERS AND COUNTEROFFERS, TO SELL OR PURCHASE A POLICY PURSUANT
TO A LIFE SETTLEMENT CONTRACT; AND DELIVERS TO:
  (1)  A LIFE SETTLEMENT PROVIDER AN OFFER FROM A LIFE SETTLEMENT BROKER
OR OWNER TO SELL A POLICY; OR
  (2) AN OWNER OR LIFE SETTLEMENT BROKER AN OFFER FROM A LIFE SETTLEMENT
PROVIDER TO PURCHASE A POLICY.
  (M) "LIFE SETTLEMENT PROVIDER" MEANS A PERSON WHO ENTERS, OR OFFERS TO
ENTER, INTO A LIFE SETTLEMENT CONTRACT WITH THE OWNER.
  (N) "OWNER" MEANS THE OWNER OF A POLICY WHO ENTERS OR SEEKS  TO  ENTER
INTO A LIFE SETTLEMENT CONTRACT.
  (O)  "PERSON"  MEANS  ANY  NATURAL PERSON OR LEGAL ENTITY, INCLUDING A
PARTNERSHIP, LIMITED LIABILITY COMPANY,  ASSOCIATION,  TRUST  OR  CORPO-
RATION.
  (P)  "POLICY"  MEANS  AN  INDIVIDUAL OR GROUP LIFE INSURANCE POLICY OR
CERTIFICATE.
  (Q) "PREMIUM FINANCE LOAN" MEANS A  LOAN  MADE  FOR  THE  PURPOSES  OF
MAKING  PREMIUM  PAYMENTS  ON  A  LIFE  INSURANCE  POLICY, WHICH LOAN IS
SECURED BY AN INTEREST IN SUCH LIFE INSURANCE POLICY.
  (R) "QUALIFIED INSTITUTIONAL BUYER" SHALL BE AS DEFINED IN  RULE  144A
OF THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED.
  (S)  "RELATED  PROVIDER TRUST" MEANS A TRUST ESTABLISHED BY A LICENSED
LIFE SETTLEMENT PROVIDER OR A FINANCING ENTITY FOR THE SOLE  PURPOSE  OF
HOLDING  THE  OWNERSHIP  OR  BENEFICIAL  INTEREST IN SETTLED POLICIES IN
CONNECTION WITH A FINANCING TRANSACTION; PROVIDED THAT THE TRUST  HAS  A
WRITTEN  AGREEMENT  WITH  THE  LICENSED  LIFE  SETTLEMENT PROVIDER UNDER
WHICH:
  (1) THE LICENSED LIFE SETTLEMENT PROVIDER IS RESPONSIBLE FOR  ENSURING
COMPLIANCE WITH ALL STATUTORY AND REGULATORY REQUIREMENTS; AND
  (2)  THE  TRUST  AGREES TO MAKE ALL RECORDS AND FILES RELATING TO LIFE
SETTLEMENT TRANSACTIONS AVAILABLE TO  THE  SUPERINTENDENT  AS  IF  THOSE
RECORDS  AND FILES WERE MAINTAINED DIRECTLY BY THE LICENSED LIFE SETTLE-
MENT PROVIDER.
  (T) "SETTLED POLICY" MEANS A POLICY THAT AT ANY TIME HAS BEEN ACQUIRED
BY A LIFE SETTLEMENT PROVIDER PURSUANT TO A LIFE SETTLEMENT CONTRACT.
  (U) "SPECIAL PURPOSE ENTITY" MEANS A CORPORATION, PARTNERSHIP,  TRUST,
LIMITED  LIABILITY  COMPANY,  OR  OTHER  LEGAL  ENTITY  FORMED SOLELY TO
PROVIDE, EITHER DIRECTLY OR INDIRECTLY, ACCESS TO INSTITUTIONAL  CAPITAL
MARKETS FOR A FINANCING ENTITY OR LICENSED LIFE SETTLEMENT PROVIDER.
  S  7803.  LICENSE  REQUIREMENTS FOR LIFE SETTLEMENT PROVIDERS.  (A) NO
PERSON SHALL ENGAGE IN THE  BUSINESS  OF  LIFE  SETTLEMENTS  AS  A  LIFE
SETTLEMENT  PROVIDER  IN THIS STATE WITHOUT HAVING AUTHORITY TO DO SO BY
VIRTUE OF A LIFE SETTLEMENT PROVIDER LICENSE ISSUED AND IN FORCE  PURSU-
ANT TO THIS ARTICLE.
  (B)(1) THE SUPERINTENDENT MAY ISSUE A LIFE SETTLEMENT PROVIDER LICENSE
TO  ANY PERSON WHO IS DEEMED BY THE SUPERINTENDENT TO BE TRUSTWORTHY AND
COMPETENT TO ACT AS A LIFE SETTLEMENT  PROVIDER  AND  WHO  IS  OTHERWISE
QUALIFIED  AS  REQUIRED  IN  THIS  ARTICLE AND WHO HAS COMPLIED WITH THE
PREREQUISITES PRESCRIBED IN THIS ARTICLE.
  (2) EVERY LICENSE ISSUED PURSUANT TO THIS SECTION SHALL EXPIRE ON JUNE
THIRTIETH OF ODD-NUMBERED YEARS.
  (C)(1) APPLICATION FOR A LIFE SETTLEMENT  PROVIDER  LICENSE  SHALL  BE
MADE  TO THE SUPERINTENDENT BY THE APPLICANT ON A FORM PRESCRIBED BY THE
SUPERINTENDENT, AND THE APPLICATION SHALL BE ACCOMPANIED BY A FEE IN  AN
AMOUNT TO BE ESTABLISHED BY THE SUPERINTENDENT.

S. 9                               13                               A. 9

  (2) THE APPLICANT FOR A LIFE SETTLEMENT PROVIDER LICENSE SHALL:
  (A) FULLY DISCLOSE THE IDENTITY OF ALL STOCKHOLDERS (EXCEPT STOCKHOLD-
ERS OWNING FEWER THAN TEN PERCENT OF THE VOTING SHARES OF A LIFE SETTLE-
MENT  PROVIDER  WHOSE  SHARES  ARE PUBLICLY TRADED), PARTNERS, OFFICERS,
MEMBERS, DIRECTORS AND PERSONS WITH A CONTROLLING INTEREST. FOR PURPOSES
OF THIS SECTION, "CONTROLLING INTEREST" MEANS A PERSON WHO  DIRECTLY  OR
INDIRECTLY,  HAS  THE  POWER  TO  CAUSE  TO  BE DIRECTED THE MANAGEMENT,
CONTROL OR ACTIVITIES OF SUCH LICENSEE;
  (B) PROVIDE A DETAILED PLAN OF OPERATION;
  (C) PROVIDE, IF A LEGAL ENTITY, A CERTIFICATE OF  GOOD  STANDING  FROM
THE STATE OF ITS DOMICILE;
  (D)  PROVIDE AN ANTI-FRAUD PLAN THAT MEETS THE REQUIREMENTS OF ARTICLE
FOUR OF THIS CHAPTER;
  (E) DEMONSTRATE FINANCIAL ACCOUNTABILITY AS EVIDENCED  BY  A  BOND  OR
OTHER  METHOD  FOR  FINANCIAL ACCOUNTABILITY AS DETERMINED BY THE SUPER-
INTENDENT PURSUANT TO REGULATION; AND
  (F) PROVIDE ANY OTHER INFORMATION REQUIRED BY THE SUPERINTENDENT.
  (D) THE SUPERINTENDENT MAY REQUIRE AN APPLICANT FOR  SUCH  LICENSE  TO
SUBMIT  A  SET OF FINGERPRINTS.  SUCH FINGERPRINTS SHALL BE SUBMITTED TO
THE DIVISION OF CRIMINAL JUSTICE SERVICES FOR A STATE  CRIMINAL  HISTORY
RECORD  CHECK,  AS  DEFINED IN SUBDIVISION ONE OF SECTION THREE THOUSAND
THIRTY-FIVE OF THE EDUCATION LAW, AND MAY BE SUBMITTED  TO  THE  FEDERAL
BUREAU  OF  INVESTIGATION  FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK.
ALL SUCH CRIMINAL HISTORY RECORDS SENT TO THE SUPERINTENDENT PURSUANT TO
THIS PARAGRAPH SHALL BE CONFIDENTIAL PURSUANT TO THE APPLICABLE  FEDERAL
AND  STATE LAWS, RULES AND REGULATIONS, AND SHALL NOT BE PUBLISHED OR IN
ANY WAY DISCLOSED TO  PERSONS  OTHER  THAN  THE  SUPERINTENDENT,  UNLESS
OTHERWISE  AUTHORIZED  BY  LAW.  THE  SUPERINTENDENT  SHALL PROVIDE SUCH
APPLICANT WITH A COPY OF HIS OR HER CRIMINAL  HISTORY  RECORD,  IF  ANY,
TOGETHER  WITH  A  COPY OF ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW,
AND INFORM SUCH APPLICANT OF HIS OR HER RIGHT TO SEEK CORRECTION OF  ANY
INCORRECT  INFORMATION  CONTAINED IN SUCH RECORD PURSUANT TO REGULATIONS
AND PROCEDURES ESTABLISHED BY THE DIVISION OF CRIMINAL JUSTICE SERVICES.
ALL DETERMINATIONS TO GRANT OR DENY CLEARANCE FOR LICENSURE PURSUANT  TO
THIS  SECTION SHALL BE IN ACCORDANCE WITH SUBDIVISION SIXTEEN OF SECTION
TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND  ARTICLE  TWENTY-THREE-A
OF  THE  CORRECTION  LAW. WHEN THE SUPERINTENDENT DENIES AN APPLICATION,
WRITTEN NOTICE OF SUCH DETERMINATION SHALL BE GIVEN TO  THE  PROSPECTIVE
APPLICANT  WHO  SHALL  BE  AFFORDED NOTICE AND THE RIGHT TO BE HEARD AND
OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION.
  (E)(1) AS PART OF THE APPLICATION, THE APPLICANT SHALL SUBMIT A  POWER
OF  ATTORNEY  DESIGNATING THE SUPERINTENDENT AS AGENT FOR THE PURPOSE OF
RECEIVING SERVICE OF LEGAL DOCUMENTS OR PROCESS.
  (2) THE POWER OF ATTORNEY SHALL INCLUDE THE NAME AND  ADDRESS  OF  THE
OFFICER,  AGENT, OR OTHER PERSON TO WHOM SUCH LEGAL DOCUMENTS OR PROCESS
SHALL BE FORWARDED BY THE SUPERINTENDENT OR HIS OR HER DEPUTY ON  BEHALF
OF SUCH LIFE SETTLEMENT PROVIDER.
  (3)  SERVICE  OF  LEGAL  DOCUMENTS  OR  PROCESS UPON A LIFE SETTLEMENT
PROVIDER PURSUANT TO THIS SUBSECTION SHALL BE MADE BY SERVING THE SUPER-
INTENDENT, ANY DEPUTY SUPERINTENDENT OR ANY  SALARIED  EMPLOYEE  OF  THE
DEPARTMENT  WHOM THE SUPERINTENDENT DESIGNATES FOR SUCH PURPOSE WITH TWO
COPIES THEREOF AND THE PAYMENT OF A FEE OF  FORTY  DOLLARS.  THE  SUPER-
INTENDENT  SHALL  FORWARD  A  COPY OF SUCH LEGAL DOCUMENTS OR PROCESS BY
REGISTERED OR CERTIFIED MAIL TO THE  LIFE  SETTLEMENT  PROVIDER  AT  THE
ADDRESS GIVEN IN ITS WRITTEN CERTIFICATE OF REGISTRATION, AND SHALL KEEP
A  RECORD OF ALL LEGAL DOCUMENTS OR PROCESS SO SERVED.  SERVICE OF LEGAL

S. 9                               14                               A. 9

DOCUMENTS OR PROCESS SO MADE SHALL BE DEEMED MADE WITHIN THE TERRITORIAL
JURISDICTION OF ANY COURT IN THIS STATE.
  (F)  THE  SUPERINTENDENT,  IN  THE  EXERCISE  OF  THE SUPERINTENDENT'S
DISCRETION, MAY REFUSE TO ISSUE A LIFE SETTLEMENT  PROVIDER  LICENSE  IN
THE  NAME  OF  ANY  PERSON  IF NOT SATISFIED THAT ANY OFFICER, EMPLOYEE,
STOCKHOLDER, PARTNER, DIRECTOR, MEMBER,  AGENT,  OR  RESPONSIBLE  PERSON
THEREOF, WHO MAY MATERIALLY INFLUENCE THE APPLICANT'S CONDUCT, MEETS THE
STANDARDS OF THIS ARTICLE.
  (G)  EVERY  LICENSE ISSUED PURSUANT TO THIS SECTION MAY BE RENEWED FOR
THE ENSUING PERIOD OF TWENTY-FOUR MONTHS UPON THE FILING OF AN  APPLICA-
TION IN CONFORMITY WITH THIS SECTION.
  (H)(1)  BEFORE  THE  RENEWAL  OF  ANY LIFE SETTLEMENT PROVIDER LICENSE
SHALL BE ISSUED, AN APPLICATION FOR RENEWAL OF THE LICENSE SHALL BE MADE
TO THE SUPERINTENDENT BY THE APPLICANT  ON  A  FORM  PRESCRIBED  BY  THE
SUPERINTENDENT AND CONTAINING SUCH INFORMATION AS THE SUPERINTENDENT MAY
PRESCRIBE. THE APPLICATION SHALL BE ACCOMPANIED BY A FEE IN AN AMOUNT TO
BE ESTABLISHED BY THE SUPERINTENDENT.
  (2) IF AN APPLICATION FOR A RENEWAL LICENSE SHALL HAVE BEEN FILED WITH
THE  SUPERINTENDENT  BEFORE  THE  EXPIRATION  OF  THE  LICENSE, THEN THE
LICENSE SOUGHT TO BE RENEWED SHALL CONTINUE IN  FULL  FORCE  AND  EFFECT
EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL LICENSE
APPLIED FOR OR UNTIL FIVE  DAYS  AFTER  THE  SUPERINTENDENT  SHALL  HAVE
REFUSED  TO  ISSUE  SUCH  RENEWAL LICENSE AND SHALL HAVE GIVEN NOTICE OF
SUCH REFUSAL TO  THE  APPLICANT.  BEFORE  REFUSING  TO  RENEW  ANY  SUCH
LICENSE,  THE  SUPERINTENDENT  SHALL  NOTIFY THE APPLICANT OF THE SUPER-
INTENDENT'S INTENTION TO DO SO AND SHALL GIVE SUCH APPLICANT A HEARING.
  (3) AN APPLICATION FOR THE RENEWAL OF A LICENSE SHALL  BE  FILED  WITH
THE  SUPERINTENDENT  NOT  LESS  THAN  SIXTY  DAYS  PRIOR TO THE DATE THE
LICENSE EXPIRES OR THE APPLICANT MAY BE SUBJECT TO  A  FURTHER  FEE  FOR
LATE FILING, AS PRESCRIBED BY THE SUPERINTENDENT.
  (I)  A  LIFE  SETTLEMENT PROVIDER LICENSEE SHALL PROVIDE TO THE SUPER-
INTENDENT NEW OR REVISED INFORMATION ABOUT STOCKHOLDERS  (EXCEPT  STOCK-
HOLDERS  OWNING  FEWER  THAN  TEN PERCENT OF THE VOTING SHARES OF A LIFE
SETTLEMENT PROVIDER WHOSE SHARES ARE PUBLICLY TRADED),  PARTNERS,  OFFI-
CERS,  MEMBERS,  DIRECTORS,  DESIGNATED  EMPLOYEES  OR  PERSONS  WITH  A
CONTROLLING INTEREST WITHIN THIRTY DAYS OF THE CHANGE.
  (J) EVERY INDIVIDUAL APPLICANT FOR A LICENSE UNDER THIS SECTION  SHALL
BE  EIGHTEEN  YEARS  OF AGE OR OLDER AT THE TIME OF THE ISSUANCE OF SUCH
LICENSE.
  S 7804. REGISTRATION REQUIREMENTS FOR LIFE SETTLEMENT  INTERMEDIARIES.
(A)  NO PERSON SHALL ACT AS A LIFE SETTLEMENT INTERMEDIARY IN THIS STATE
WITHOUT HAVING AUTHORITY TO DO SO BY VIRTUE OF A REGISTRATION ISSUED AND
IN FORCE PURSUANT TO THIS ARTICLE.
  (B)(1) THE SUPERINTENDENT MAY ISSUE  A  LIFE  SETTLEMENT  INTERMEDIARY
REGISTRATION TO ANY PERSON WHO:
  (A) IS DEEMED BY THE SUPERINTENDENT TO BE TRUSTWORTHY AND COMPETENT TO
ACT AS A LIFE SETTLEMENT INTERMEDIARY;
  (B) IS OTHERWISE QUALIFIED AS REQUIRED IN THIS ARTICLE; AND
  (C) HAS COMPLIED WITH THE PREREQUISITES PRESCRIBED IN THIS ARTICLE.
  (2) EVERY REGISTRATION ISSUED PURSUANT TO THIS SECTION SHALL EXPIRE ON
JUNE THIRTIETH OF ODD-NUMBERED YEARS.
  (C)(1)  APPLICATION  FOR  A  LIFE SETTLEMENT INTERMEDIARY REGISTRATION
SHALL BE  MADE  TO  THE  SUPERINTENDENT  BY  THE  APPLICANT  ON  A  FORM
PRESCRIBED  BY THE SUPERINTENDENT, AND THE APPLICATION SHALL BE ACCOMPA-
NIED BY A FEE IN AN AMOUNT ESTABLISHED BY THE SUPERINTENDENT.

S. 9                               15                               A. 9

  (2) THE APPLICANT FOR  A  LIFE  SETTLEMENT  INTERMEDIARY  REGISTRATION
SHALL PROVIDE:
  (A)  THE  STATE IN WHICH THE LIFE SETTLEMENT INTERMEDIARY IS DOMICILED
OR RESIDENT;
  (B) THE PRINCIPAL PLACE OF BUSINESS OF THE  LIFE  SETTLEMENT  INTERME-
DIARY;
  (C)  ALL  OTHER  STATES  IN  WHICH THE LIFE SETTLEMENT INTERMEDIARY IS
DOING OR INTENDS TO DO BUSINESS;
  (D) A DETAILED PLAN OF OPERATION; AND
  (E) THE IDENTITIES OF THE LIFE SETTLEMENT INTERMEDIARY EXECUTIVE OFFI-
CER OR OFFICERS DIRECTLY RESPONSIBLE FOR SUCH BUSINESS, AND  ALL  STOCK-
HOLDERS (EXCEPT STOCKHOLDERS OWNING FEWER THAN TEN PERCENT OF THE VOTING
SHARES OF A LIFE SETTLEMENT INTERMEDIARY WHOSE SHARES ARE PUBLICLY TRAD-
ED),  PARTNERS, OFFICERS, MEMBERS, DIRECTORS AND PERSONS WITH A CONTROL-
LING INTEREST. FOR PURPOSES  OF  THIS  SECTION,  "CONTROLLING  INTEREST"
MEANS  A PERSON WHO DIRECTLY OR INDIRECTLY, HAS THE POWER TO CAUSE TO BE
DIRECTED THE MANAGEMENT, CONTROL OR ACTIVITIES OF SUCH REGISTRANT.
  (D) EACH LIFE SETTLEMENT INTERMEDIARY THAT  IS  REQUIRED  TO  REGISTER
PURSUANT  TO  THIS SECTION SHALL ALSO FURNISH SUCH INFORMATION AS MAY BE
REQUIRED BY THE SUPERINTENDENT TO:
  (1) VERIFY THAT THE PERSON OR PERSONS QUALIFY  AS  A  LIFE  SETTLEMENT
INTERMEDIARY; AND
  (2) DETERMINE COMPLIANCE WITH ANY APPLICABLE STATE LAW.
  (E)(1)  AS PART OF THE APPLICATION, THE APPLICANT SHALL SUBMIT A POWER
OF ATTORNEY DESIGNATING THE SUPERINTENDENT AS AGENT FOR THE  PURPOSE  OF
RECEIVING SERVICE OF LEGAL DOCUMENTS OR PROCESS.
  (2)  THE  POWER  OF ATTORNEY SHALL INCLUDE THE NAME AND ADDRESS OF THE
OFFICER, AGENT, OR OTHER PERSON TO WHOM SUCH LEGAL DOCUMENTS OR  PROCESS
SHALL  BE FORWARDED BY THE SUPERINTENDENT OR HIS OR HER DEPUTY ON BEHALF
OF SUCH LIFE SETTLEMENT PROVIDER.
  (3) SERVICE OF LEGAL DOCUMENTS  OR  PROCESS  UPON  A  LIFE  SETTLEMENT
PROVIDER PURSUANT TO THIS SUBSECTION SHALL BE MADE BY SERVING THE SUPER-
INTENDENT,  ANY  DEPUTY  SUPERINTENDENT  OR ANY SALARIED EMPLOYEE OF THE
DEPARTMENT WHOM THE SUPERINTENDENT DESIGNATES FOR SUCH PURPOSE WITH  TWO
COPIES  THEREOF  AND  THE  PAYMENT OF A FEE OF FORTY DOLLARS. THE SUPER-
INTENDENT SHALL FORWARD A COPY OF SUCH LEGAL  DOCUMENTS  OR  PROCESS  BY
REGISTERED  OR  CERTIFIED  MAIL  TO  THE LIFE SETTLEMENT PROVIDER AT THE
ADDRESS GIVEN IN ITS WRITTEN CERTIFICATE OF REGISTRATION, AND SHALL KEEP
A RECORD OF ALL LEGAL DOCUMENTS OR PROCESS SO SERVED.  SERVICE OF  LEGAL
DOCUMENTS OR PROCESS SO MADE SHALL BE DEEMED MADE WITHIN THE TERRITORIAL
JURISDICTION OF ANY COURT IN THIS STATE.
  (F)  THE SUPERINTENDENT MAY REQUIRE AN APPLICANT FOR SUCH REGISTRATION
TO SUBMIT A SET OF FINGERPRINTS.  SUCH FINGERPRINTS SHALL  BE  SUBMITTED
TO THE DIVISION OF CRIMINAL JUSTICE SERVICES FOR A STATE CRIMINAL HISTO-
RY RECORD CHECK, AS DEFINED IN SUBDIVISION ONE OF SECTION THREE THOUSAND
THIRTY-FIVE  OF  THE  EDUCATION LAW, AND MAY BE SUBMITTED TO THE FEDERAL
BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL  HISTORY  RECORD  CHECK.
ALL SUCH CRIMINAL HISTORY RECORDS SENT TO THE SUPERINTENDENT PURSUANT TO
THIS  PARAGRAPH SHALL BE CONFIDENTIAL PURSUANT TO THE APPLICABLE FEDERAL
AND STATE LAWS, RULES AND REGULATIONS, AND SHALL NOT BE PUBLISHED OR  IN
ANY  WAY  DISCLOSED  TO  PERSONS  OTHER  THAN THE SUPERINTENDENT, UNLESS
OTHERWISE AUTHORIZED BY  LAW.  THE  SUPERINTENDENT  SHALL  PROVIDE  SUCH
APPLICANT  WITH  A  COPY  OF HIS OR HER CRIMINAL HISTORY RECORD, IF ANY,
TOGETHER WITH A COPY OF ARTICLE TWENTY-THREE-A OF  THE  CORRECTION  LAW,
AND  INFORM SUCH APPLICANT OF HIS OR HER RIGHT TO SEEK CORRECTION OF ANY
INCORRECT INFORMATION CONTAINED IN SUCH RECORD PURSUANT  TO  REGULATIONS

S. 9                               16                               A. 9

AND PROCEDURES ESTABLISHED BY THE DIVISION OF CRIMINAL JUSTICE SERVICES.
ALL  DETERMINATIONS TO GRANT OR DENY CLEARANCE FOR REGISTRATION PURSUANT
TO THIS SECTION SHALL BE  IN  ACCORDANCE  WITH  SUBDIVISION  SIXTEEN  OF
SECTION  TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTICLE TWENTY-
THREE-A OF THE CORRECTION LAW. WHEN THE SUPERINTENDENT DENIES AN  APPLI-
CATION,  WRITTEN  NOTICE  OF  SUCH  DETERMINATION  SHALL BE GIVEN TO THE
PROSPECTIVE APPLICANT WHO SHALL BE AFFORDED NOTICE AND THE RIGHT  TO  BE
HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION.
  (G)  THE  SUPERINTENDENT,  IN  THE  EXERCISE  OF  THE SUPERINTENDENT'S
DISCRETION, MAY REFUSE TO ISSUE A LIFE SETTLEMENT INTERMEDIARY REGISTRA-
TION IN THE NAME OF ANY  PERSON  IF  NOT  SATISFIED  THAT  ANY  OFFICER,
EMPLOYEE,  STOCKHOLDER, PARTNER, DIRECTOR, MEMBER, AGENT, OR RESPONSIBLE
PERSON THEREOF WHO MAY  MATERIALLY  INFLUENCE  THE  APPLICANT'S  CONDUCT
MEETS THE STANDARDS OF THIS ARTICLE.
  (H)  EVERY REGISTRATION ISSUED PURSUANT TO THIS SECTION MAY BE RENEWED
FOR THE ENSUING PERIOD OF TWENTY-FOUR  MONTHS  UPON  THE  FILING  OF  AN
APPLICATION IN CONFORMITY WITH THIS SECTION.
  (I)(1)  BEFORE  THE RENEWAL OF ANY LIFE SETTLEMENT INTERMEDIARY REGIS-
TRATION SHALL BE ISSUED, AN APPLICATION FOR RENEWAL OF THE  REGISTRATION
SHALL  BE  MADE  TO  THE  SUPERINTENDENT  BY  THE  APPLICANT  ON  A FORM
PRESCRIBED BY THE SUPERINTENDENT AND CONTAINING SUCH INFORMATION AS  THE
SUPERINTENDENT  MAY  PRESCRIBE, AND THE APPLICATION SHALL BE ACCOMPANIED
BY A FEE IN AN AMOUNT TO BE ESTABLISHED BY THE SUPERINTENDENT.
  (2) IF AN APPLICATION FOR RENEWAL REGISTRATION SHALL HAVE  BEEN  FILED
WITH  THE  SUPERINTENDENT BEFORE THE EXPIRATION OF THE REGISTRATION, THE
REGISTRATION SOUGHT TO BE RENEWED  SHALL  CONTINUE  IN  FULL  FORCE  AND
EFFECT  EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
REGISTRATION APPLIED FOR OR UNTIL FIVE  DAYS  AFTER  THE  SUPERINTENDENT
SHALL  HAVE  REFUSED  TO  ISSUE SUCH RENEWAL REGISTRATION AND SHALL HAVE
GIVEN NOTICE OF SUCH REFUSAL TO THE APPLICANT. BEFORE REFUSING TO  RENEW
ANY  SUCH REGISTRATION, THE SUPERINTENDENT SHALL NOTIFY THE APPLICANT OF
THE SUPERINTENDENT'S INTENTION TO DO SO AND SHALL GIVE SUCH APPLICANT  A
HEARING.
  (3)  AN  APPLICATION  FOR THE RENEWAL OF A REGISTRATION SHALL BE FILED
WITH THE SUPERINTENDENT NOT LESS THAN SIXTY DAYS PRIOR TO THE  DATE  THE
REGISTRATION  EXPIRES  OR  THE APPLICANT MAY BE SUBJECT TO A FURTHER FEE
FOR LATE FILING, AS PRESCRIBED BY THE SUPERINTENDENT.
  (J) A LIFE SETTLEMENT INTERMEDIARY SHALL, AS TO ANY SUBSEQUENT CHANGES
IN ANY OF THE ITEMS SET FORTH IN PARAGRAPH TWO  OF  SUBSECTION  (C)  AND
PARAGRAPH  ONE OF SUBSECTION (D) OF THIS SECTION, NOTIFY THE SUPERINTEN-
DENT IN WRITING WITHIN THIRTY DAYS OF ANY SUCH CHANGE.
  (K) EVERY INDIVIDUAL APPLICANT FOR  REGISTRATION  UNDER  THIS  SECTION
SHALL  BE  EIGHTEEN YEARS OF AGE OR OLDER AT THE TIME OF THE ISSUANCE OF
SUCH REGISTRATION.
  S 7805. LICENSE AND REGISTRATION REVOCATION.   (A) THE  SUPERINTENDENT
MAY  SUSPEND,  REVOKE OR REFUSE TO RENEW THE LICENSE OF ANY LIFE SETTLE-
MENT PROVIDER OR THE REGISTRATION OF ANY LIFE  SETTLEMENT  INTERMEDIARY,
IF,  AFTER  NOTICE  AND  HEARING, THE SUPERINTENDENT DETERMINES THAT THE
LIFE SETTLEMENT PROVIDER OR LIFE SETTLEMENT INTERMEDIARY, OR  ANY  OFFI-
CER, PARTNER, MEMBER, OR KEY MANAGEMENT PERSONNEL THEREOF, HAS:
  (1)  VIOLATED  ANY INSURANCE LAWS OR ANY REGULATION PROMULGATED THERE-
UNDER, ANY SUBPOENA OR ORDER OF THE SUPERINTENDENT OR OF ANOTHER STATE'S
INSURANCE COMMISSIONER, OR ANY OTHER LAW IN THE COURSE OF THE LICENSEE'S
DEALINGS IN SUCH CAPACITY;

S. 9                               17                               A. 9

  (2) PROVIDED MATERIALLY INCORRECT, MATERIALLY  MISLEADING,  MATERIALLY
INCOMPLETE  OR MATERIALLY UNTRUE INFORMATION IN THE LICENSE OR REGISTRA-
TION APPLICATION;
  (3)  OBTAINED OR ATTEMPTED TO OBTAIN A LICENSE OR REGISTRATION THROUGH
MISREPRESENTATION OR FRAUD;
  (4)(A) USED FRAUDULENT, COERCIVE OR DISHONEST PRACTICES;
  (B) DEMONSTRATED INCOMPETENCE;
  (C) DEMONSTRATED UNTRUSTWORTHINESS; OR
  (D) DEMONSTRATED FINANCIAL IRRESPONSIBILITY IN THE CONDUCT OF BUSINESS
IN THIS STATE OR ELSEWHERE;
  (5) IMPROPERLY WITHHELD, MISAPPROPRIATED OR CONVERTED  ANY  MONIES  OR
PROPERTIES  RECEIVED  IN  THE  COURSE OF BUSINESS IN THIS STATE OR ELSE-
WHERE;
  (6) INTENTIONALLY MISREPRESENTED THE TERMS OF ANY  INSURANCE  CONTRACT
OR LIFE SETTLEMENT CONTRACT OR ANY APPLICATION THEREFOR;
  (7)  BEEN  CONVICTED  OF A FELONY, OR HAS BEEN GUILTY OF FRAUDULENT OR
DISHONEST PRACTICES OR OTHER MISCONDUCT OR MALFEASANCE;
  (8) ADMITTED OR BEEN FOUND TO  HAVE  COMMITTED  ANY  INSURANCE  UNFAIR
TRADE PRACTICE OR FRAUD;
  (9) HAD A LIFE SETTLEMENT PROVIDER LICENSE OR LIFE SETTLEMENT INTERME-
DIARY REGISTRATION, OR AN EQUIVALENT DENIED, SUSPENDED OR REVOKED IN ANY
OTHER STATE, PROVINCE, DISTRICT OR TERRITORY;
  (10)  FORGED  ANOTHER PERSON'S NAME TO AN APPLICATION FOR INSURANCE OR
LIFE SETTLEMENT CONTRACT OR TO ANY DOCUMENT RELATED TO AN  INSURANCE  OR
LIFE SETTLEMENT TRANSACTION;
  (11)  KNOWINGLY  CONDUCTED  THE  BUSINESS  OF  LIFE SETTLEMENTS WITH A
PERSON WHO IS NOT LICENSED OR  REGISTERED  UNLESS  SUCH  PERSON  IS  NOT
REQUIRED TO BE LICENSED OR REGISTERED;
  (12)  DEMONSTRATED  A  PATTERN  OF  UNREASONABLE PAYMENTS TO OWNERS OR
INSUREDS;
  (13) FAILED TO HONOR CONTRACTUAL OBLIGATIONS SET OUT IN A LIFE SETTLE-
MENT CONTRACT;
  (14) SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED THE OWNERSHIP OF
A SETTLED POLICY TO A PERSON OTHER THAN AS PROVIDED IN THIS ARTICLE; OR
  (15) FAILED TO PROTECT THE PRIVACY OF THE INSURED OR  OWNER  OR  OTHER
PERSON  FOR  WHOM  THE  LICENSEE  OR  REGISTRANT WAS REQUIRED TO PROVIDE
PROTECTION PURSUANT TO THIS ARTICLE.
  (B)(1) BEFORE THE SUPERINTENDENT SUSPENDS, REVOKES OR REFUSES TO RENEW
THE LICENSE OF A LIFE SETTLEMENT PROVIDER OR THE REGISTRATION OF A  LIFE
SETTLEMENT  INTERMEDIARY,  THE  SUPERINTENDENT  SHALL GIVE NOTICE TO THE
LICENSEE OR REGISTRANT AND SHALL HOLD, OR CAUSE TO BE  HELD,  A  HEARING
NOT  LESS  THAN  TEN  DAYS  AFTER THE GIVING OF SUCH NOTICE, EXCEPT THAT
WHERE, IN THE JUDGMENT OF THE SUPERINTENDENT, THE PUBLIC HEALTH,  SAFETY
OR  WELFARE  SO REQUIRES, A LICENSE OR REGISTRATION MAY BE SUSPENDED FOR
UP TO TEN DAYS PRIOR TO A HEARING.
  (2) IN LIEU OF REVOKING OR SUSPENDING THE LICENSE OR REGISTRATION  FOR
ANY  OF  THE  CAUSES  ENUMERATED  IN SUBSECTION (A) OF THIS SECTION, THE
SUPERINTENDENT MAY IMPOSE A CIVIL PENALTY NOT  TO  EXCEED  TEN  THOUSAND
DOLLARS FOR EACH VIOLATION.
  (3) UPON THE FAILURE OF SUCH LICENSEE OR REGISTRANT TO PAY SUCH PENAL-
TY  ORDERED  PURSUANT  TO PARAGRAPH TWO OF THIS SUBSECTION WITHIN TWENTY
DAYS AFTER THE MAILING OF SUCH ORDER, POSTAGE PREPAID,  REGISTERED,  AND
ADDRESSED TO THE LAST KNOWN PLACE OF BUSINESS OF SUCH LICENSEE OR REGIS-
TRANT, UNLESS SUCH ORDER IS STAYED BY A COURT OF COMPETENT JURISDICTION,
THE SUPERINTENDENT MAY REVOKE THE LICENSE OF SUCH LICENSEE OR THE REGIS-

S. 9                               18                               A. 9

TRATION  OF  SUCH REGISTRANT, OR MAY SUSPEND THE SAME FOR SUCH PERIOD AS
THE SUPERINTENDENT DETERMINES.
  S  7806. LIFE SETTLEMENT CONTRACT FORMS.  (A) NO LICENSED LIFE SETTLE-
MENT PROVIDER SHALL ENTER INTO A LIFE  SETTLEMENT  CONTRACT  SUBJECT  TO
THIS CHAPTER UNLESS THE LIFE SETTLEMENT CONTRACT FORM, APPLICATION FORM,
AND  ANY  OTHER  FORM AS MAY BE PRESCRIBED BY REGULATION, HAS BEEN FILED
WITH AND APPROVED BY THE SUPERINTENDENT. THE SUPERINTENDENT  MAY  DISAP-
PROVE  ANY  SUCH  FORM  IF  THE  SUPERINTENDENT  FINDS  THE  FORM OR ANY
PROVISIONS CONTAINED THEREIN TO BE UNREASONABLE, CONTRARY TO LAW OR  THE
INTERESTS  OF  THE  PEOPLE  OF  THIS  STATE,  OR OTHERWISE MISLEADING OR
UNFAIR.
  (B) WHENEVER, BY THE PROVISIONS OF THIS  CHAPTER,  THE  SUPERINTENDENT
HAS APPROVED ANY LIFE SETTLEMENT CONTRACT FORM, APPLICATION FORM, OR ANY
OTHER  FORM,  THE  SUPERINTENDENT MAY, AFTER NOTICE AND HEARING GIVEN TO
THE LIFE SETTLEMENT PROVIDER THAT SUBMITTED THE FORM FOR APPROVAL, WITH-
DRAW AN APPROVAL PREVIOUSLY GIVEN IF:
  (1) THE USE OF THE FORM IS CONTRARY TO THE REQUIREMENTS APPLICABLE  TO
THE FORM AT THE TIME OF SUCH WITHDRAWAL, OR
  (2) IT CONTAINS PROVISIONS THAT ARE UNJUST, UNFAIR OR INEQUITABLE.
  ANY  WITHDRAWAL  OF  APPROVAL  SHALL BE EFFECTIVE AT THE EXPIRATION OF
SUCH PERIOD, AT LEAST NINETY DAYS AFTER THE GIVING OF  NOTICE  OF  WITH-
DRAWAL OR AS THE SUPERINTENDENT SHALL IN SUCH NOTICE PRESCRIBE.
  S 7807. REPORTING REQUIREMENTS.  (A)(1) EVERY LICENSED LIFE SETTLEMENT
PROVIDER  SHALL FILE IN THE OFFICE OF THE SUPERINTENDENT, ANNUALLY ON OR
BEFORE THE FIRST DAY OF MARCH, A STATEMENT, TO BE KNOWN  AS  ITS  ANNUAL
STATEMENT,  VERIFIED  BY THE OATH OF AT LEAST TWO OF ITS PRINCIPAL OFFI-
CERS, SHOWING ITS CONDITION AT THE END OF THE PRECEDING  CALENDAR  YEAR.
THE STATEMENT SHALL BE IN SUCH FORM AND SHALL CONTAIN SUCH OTHER MATTERS
AS THE SUPERINTENDENT SHALL PRESCRIBE. IN ADDITION TO ANY OTHER REQUIRE-
MENTS,  THE  ANNUAL  STATEMENT SHALL SPECIFY THE TOTAL NUMBER, AGGREGATE
FACE AMOUNT AND LIFE SETTLEMENT PROCEEDS OF POLICIES SETTLED DURING  THE
IMMEDIATELY  PRECEDING  CALENDAR  YEAR, TOGETHER WITH A BREAKDOWN OF THE
INFORMATION BY POLICY ISSUE YEAR.   THE INFORMATION  SHALL  NOT  INCLUDE
INDIVIDUAL  TRANSACTION  DATA REGARDING THE BUSINESS OF LIFE SETTLEMENTS
OR INFORMATION IF THERE IS A REASONABLE BASIS TO BELIEVE THE INFORMATION
COULD BE USED TO IDENTIFY THE OWNER OR THE INSURED.
  (2) EVERY LIFE SETTLEMENT PROVIDER THAT WILLFULLY  FAILS  TO  FILE  AN
ANNUAL  STATEMENT  AS  REQUIRED  IN  THIS SECTION, OR WILLFULLY FAILS TO
REPLY WITHIN THIRTY DAYS TO A WRITTEN INQUIRY BY THE  SUPERINTENDENT  IN
CONNECTION  THEREWITH, SHALL, IN ADDITION TO OTHER PENALTIES PROVIDED BY
THIS CHAPTER, BE SUBJECT, UPON DUE NOTICE AND OPPORTUNITY TO  BE  HEARD,
TO A PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS PER DAY OF DELAY, NOT TO
EXCEED FIFTY THOUSAND DOLLARS IN THE AGGREGATE, FOR EACH SUCH FAILURE.
  S 7808. EXAMINATIONS OR INVESTIGATIONS. THE SUPERINTENDENT MAY MAKE AN
EXAMINATION  OR  INVESTIGATION  INTO  THE AFFAIRS OF ANY LIFE SETTLEMENT
PROVIDER, LIFE SETTLEMENT BROKER, LIFE SETTLEMENT  INTERMEDIARY,  APPLI-
CANT  FOR  LICENSURE  AS  A  LIFE SETTLEMENT PROVIDER OR LIFE SETTLEMENT
BROKER, OR APPLICANT FOR REGISTRATION AS A LIFE SETTLEMENT  INTERMEDIARY
AS PRESCRIBED UNDER ARTICLE THREE OF THIS CHAPTER.
  S  7809. ADVERTISING.  (A) A LIFE SETTLEMENT PROVIDER, LIFE SETTLEMENT
INTERMEDIARY OR LIFE SETTLEMENT BROKER LICENSED PURSUANT TO THIS ARTICLE
MAY CONDUCT OR PARTICIPATE IN  ADVERTISEMENTS  WITHIN  THIS  STATE.  THE
ADVERTISEMENTS  SHALL  COMPLY WITH ALL ADVERTISING AND MARKETING LAWS OR
RULES AND REGULATIONS AS MAY BE PROMULGATED BY THE SUPERINTENDENT.
  (B) ADVERTISEMENTS SHALL BE ACCURATE, TRUTHFUL AND NOT  MISLEADING  IN
FACT OR BY IMPLICATION.

S. 9                               19                               A. 9

  (C)  NO  LIFE  SETTLEMENT PROVIDER, LIFE SETTLEMENT INTERMEDIARY, LIFE
SETTLEMENT BROKER, OR ANY PERSON ACTING ON BEHALF THEREOF SHALL:
  (1)  DIRECTLY  OR  INDIRECTLY, MARKET, ADVERTISE, SOLICIT OR OTHERWISE
PROMOTE THE PURCHASE OF A POLICY FOR THE PRIMARY PURPOSE OF, OR WITH  AN
EMPHASIS ON, SETTLING THE POLICY; OR
  (2)  USE THE WORDS "FREE", "NO COST" OR WORDS OF SIMILAR IMPORT IN THE
MARKETING,  ADVERTISING,  SOLICITING  OR  OTHERWISE  PROMOTING  OF   THE
PURCHASE OF A POLICY.
  (D)  THE  FAILURE  TO FOLLOW THE PROVISIONS OF THIS SECTION SHALL BE A
DEFINED VIOLATION UNDER ARTICLE TWENTY-FOUR OF THIS CHAPTER.
  S 7810. PRIVACY.  (A) EXCEPT AS OTHERWISE  PERMITTED  OR  REQUIRED  BY
LAW,  NO  LIFE  SETTLEMENT  PROVIDER,  LIFE  SETTLEMENT  BROKER, OR LIFE
SETTLEMENT  INTERMEDIARY,  OR  ANY  AUTHORIZED  REPRESENTATIVE  THEREOF,
INSURER,  INFORMATION  BUREAU,  RATING  AGENCY  OR COMPANY, OR ANY OTHER
PERSON WITH ACTUAL KNOWLEDGE OF AN INSURED OR  OWNER'S  IDENTITY,  SHALL
DISCLOSE  THE  IDENTITY OF THE INSURED OR OWNER, OR ANY INFORMATION THAT
THERE IS A REASONABLE BASIS TO BELIEVE COULD BE  USED  TO  IDENTIFY  THE
INSURED  OR OWNER, OR THE INSURED'S FINANCIAL OR MEDICAL INFORMATION, TO
ANY PERSON UNLESS THE DISCLOSURE IS:
  (1) NECESSARY TO EFFECT A LIFE SETTLEMENT CONTRACT BETWEEN  THE  OWNER
AND  A  LIFE SETTLEMENT PROVIDER AND THE OWNER AND INSURED HAVE PROVIDED
PRIOR WRITTEN CONSENT TO THE DISCLOSURE;
  (2) NECESSARY TO EFFECTUATE THE SALE OR TRANSFER OF A LIFE  SETTLEMENT
CONTRACT  OR  A SETTLED POLICY, OR INTEREST THEREIN, PROVIDED THAT EVERY
SALE IS CONDUCTED IN ACCORDANCE WITH APPLICABLE STATE  AND  FEDERAL  LAW
AND  PROVIDED  FURTHER THAT THE OWNER AND THE INSURED HAVE BOTH PROVIDED
PRIOR WRITTEN CONSENT TO THE DISCLOSURE;
  (3) PROVIDED IN RESPONSE TO AN INVESTIGATION  OR  EXAMINATION  BY  THE
SUPERINTENDENT,  ANY OTHER GOVERNMENTAL OFFICER OR AGENCY, OR A SELF-RE-
GULATING ENTITY ESTABLISHED PURSUANT TO FEDERAL SECURITIES LAW;
  (4) A TERM OR CONDITION TO THE TRANSFER OF A POLICY  BY  ONE  LICENSED
LIFE  SETTLEMENT  PROVIDER TO ANOTHER LICENSED LIFE SETTLEMENT PROVIDER,
IN WHICH CASE THE RECEIVING LIFE SETTLEMENT PROVIDER SHALL  BE  REQUIRED
TO COMPLY WITH THE CONFIDENTIALITY REQUIREMENTS OF THIS SECTION;
  (5) NECESSARY TO ALLOW THE LIFE SETTLEMENT PROVIDER OR LIFE SETTLEMENT
BROKER,  OR  ANY  AUTHORIZED  REPRESENTATIVE  THEREOF  TO ADMINISTER THE
INSURANCE POLICY, OR TO MAKE CONTACTS FOR  THE  PURPOSE  OF  DETERMINING
HEALTH  STATUS AS AUTHORIZED BY SUBSECTION (K) OF SECTION SEVEN THOUSAND
EIGHT HUNDRED THIRTEEN OF THIS ARTICLE.  FOR THE PURPOSES OF THIS  ARTI-
CLE,  THE  TERM "AUTHORIZED REPRESENTATIVE" SHALL NOT INCLUDE ANY PERSON
WHO HAS OR MAY HAVE  ANY  FINANCIAL  INTEREST  IN  THE  LIFE  SETTLEMENT
CONTRACT  OTHER  THAN A LICENSED LIFE SETTLEMENT PROVIDER, LICENSED LIFE
SETTLEMENT BROKER, FINANCING ENTITY, RELATED PROVIDER TRUST  OR  SPECIAL
PURPOSE  ENTITY;  FURTHER, A LIFE SETTLEMENT PROVIDER OR LIFE SETTLEMENT
BROKER SHALL REQUIRE ITS AUTHORIZED REPRESENTATIVE TO AGREE  IN  WRITING
TO ADHERE TO THE PRIVACY PROVISIONS OF THIS ARTICLE;
  (6) REQUIRED TO PURCHASE INSURANCE; OR
  (7)  OTHERWISE  PERMITTED BY REGULATION PROMULGATED BY THE SUPERINTEN-
DENT.
  (B) ANY PERSON WHO OBTAINS OR MAY OBTAIN  A  SETTLED  POLICY,  OR  ANY
INTEREST THEREIN, PURSUANT TO A TRANSFER, SALE, CONVEYANCE OR ASSIGNMENT
OF A SETTLED POLICY, OR ANY INTEREST THEREIN, SHALL:
  (1) COMPLY WITH THE PROVISIONS OF THIS CHAPTER AND REGULATIONS PROMUL-
GATED THEREUNDER AND ALL OTHER APPLICABLE LAWS, GOVERNING THE PROTECTION
OF THE IDENTITY AND PRIVACY OF THE INSURED OR OWNER; AND

S. 9                               20                               A. 9

  (2) PROTECT AGAINST THE UNLAWFUL RELEASE OF ALL INFORMATION CONCERNING
THE  IDENTITY  OF ANY INSURED OR OWNER, WHICH INFORMATION WOULD OR COULD
REASONABLY BE EXPECTED TO BE USED TO IDENTIFY OR CONTACT SUCH INSURED OR
OWNER, INCLUDING THE NAME, ADDRESS (EXCEPT THE STATE  OF  RESIDENCE)  OR
SOCIAL  SECURITY  NUMBER  OF THE INSURED OR THE OWNER, OR REPRESENTATIVE
THEREOF, THE RELATED INSURANCE POLICY NUMBER OR  THE  INSURED'S  MEDICAL
INFORMATION.
  (C)   NON-PUBLIC   PERSONAL   INFORMATION  SOLICITED  OR  OBTAINED  IN
CONNECTION WITH A PROPOSED OR EXECUTED LIFE SETTLEMENT CONTRACT SHALL BE
SUBJECT TO THE PROVISIONS APPLICABLE TO FINANCIAL INSTITUTIONS UNDER THE
GRAMM LEACH BLILEY ACT, P.L.  106-102 (1999), AND ALL  OTHER  APPLICABLE
LAWS RELATING TO CONFIDENTIALITY OF NON-PUBLIC PERSONAL INFORMATION.
  (D)  THE  FAILURE  TO FOLLOW THE PROVISIONS OF THIS SECTION SHALL BE A
DEFINED VIOLATION UNDER ARTICLE TWENTY-FOUR OF THIS CHAPTER.
  S 7811. DISCLOSURES TO OWNERS AND INSUREDS.  (A) THE  LIFE  SETTLEMENT
PROVIDER  OR LIFE SETTLEMENT BROKER SHALL PROVIDE THE OWNER WITH A SEPA-
RATE WRITTEN  DOCUMENT  CONSPICUOUSLY  DISPLAYING  THE  INFORMATION  AND
DISCLOSURES  REQUIRED BY THIS SUBSECTION. THE SEPARATE DOCUMENT SHALL BE
SIGNED BY THE OWNER AND LIFE SETTLEMENT PROVIDER, NO LATER THAN THE DATE
THE LIFE SETTLEMENT CONTRACT IS SIGNED BY ALL PARTIES. AT A MINIMUM, THE
DOCUMENT SHALL STATE:
  (1) THAT THERE ARE POSSIBLE ALTERNATIVES TO LIFE SETTLEMENT CONTRACTS,
INCLUDING ACCELERATED BENEFITS OFFERED BY THE ISSUER OF THE POLICY;
  (2) THAT SOME OR ALL OF THE PROCEEDS OF A LIFE SETTLEMENT CONTRACT MAY
BE TAXABLE AND THAT ADVICE SHOULD BE  SOUGHT  FROM  A  PROFESSIONAL  TAX
ADVISOR;
  (3) THAT THE PROCEEDS FROM A LIFE SETTLEMENT CONTRACT COULD BE SUBJECT
TO THE CLAIMS OF CREDITORS;
  (4)  THAT  RECEIPT  OF  PROCEEDS  FROM  A LIFE SETTLEMENT CONTRACT MAY
ADVERSELY AFFECT THE RECIPIENTS' ELIGIBILITY FOR  PUBLIC  ASSISTANCE  OR
OTHER  GOVERNMENT  BENEFITS  OR  ENTITLEMENTS  AND THAT ADVICE SHOULD BE
OBTAINED FROM THE APPROPRIATE AGENCIES;
  (5) THAT THE OWNER HAS A RIGHT TO RESCIND A LIFE  SETTLEMENT  CONTRACT
FROM  THE TIME OF EXECUTION OF THE CONTRACT UNTIL FIFTEEN DAYS AFTER THE
RECEIPT OF THE LIFE SETTLEMENT PROCEEDS BY THE OWNER;
  (6) THAT PROCEEDS WILL BE SENT TO THE OWNER WITHIN THREE BUSINESS DAYS
AFTER THE LIFE SETTLEMENT PROVIDER HAS RECEIVED  THE  INSURER  OR  GROUP
ADMINISTRATOR'S ACKNOWLEDGEMENT THAT OWNERSHIP OF THE POLICY OR INTEREST
IN  THE  CERTIFICATE  HAS  BEEN TRANSFERRED AND THE BENEFICIARY HAS BEEN
DESIGNATED IN ACCORDANCE WITH THE TERMS OF THE LIFE SETTLEMENT CONTRACT;
  (7) THAT ENTERING INTO A LIFE  SETTLEMENT  CONTRACT  MAY  CAUSE  OTHER
RIGHTS  OR  BENEFITS,  INCLUDING CONVERSION RIGHTS AND WAIVER OF PREMIUM
BENEFITS, THAT MAY EXIST UNDER THE POLICY  OR  CERTIFICATE  OF  A  GROUP
POLICY TO BE FORFEITED BY THE OWNER AND THAT ASSISTANCE SHOULD BE SOUGHT
FROM A PROFESSIONAL FINANCIAL ADVISOR;
  (8) THE GROSS OFFER OR BID THAT THE LIFE SETTLEMENT PROVIDER SHALL PAY
PURSUANT  TO  THE LIFE SETTLEMENT CONTRACT; THE NET AMOUNT TO BE PAID TO
THE OWNER PURSUANT TO THE LIFE SETTLEMENT CONTRACT;  THE  NAME  OF  EACH
LIFE SETTLEMENT BROKER, LIFE SETTLEMENT  INTERMEDIARY, INSURANCE PRODUC-
ER  OR INSURANCE CONSULTANT THAT WILL BE COMPENSATED BY THE LIFE SETTLE-
MENT PROVIDER, OR ANY AFFILIATE, PARENT CORPORATION,  OR  SUBSIDIARY  OF
THE  LIFE  SETTLEMENT  PROVIDER; AND THE AMOUNT OF COMPENSATION THAT THE
LIFE SETTLEMENT  PROVIDER,  OR  ANY  AFFILIATE,  PARENT  CORPORATION  OR
SUBSIDIARY  OF  THE  LIFE  SETTLEMENT  PROVIDER, SHALL PROVIDE TO A LIFE
SETTLEMENT BROKER, LIFE SETTLEMENT INTERMEDIARY, INSURANCE  PRODUCER  OR
INSURANCE CONSULTANT, OR ANY AFFILIATE, PARENT CORPORATION OR SUBSIDIARY

S. 9                               21                               A. 9

OF  SUCH  BROKER, INTERMEDIARY, PRODUCER, OR CONSULTANT, PURSUANT TO THE
LIFE SETTLEMENT CONTRACT. FOR THE PURPOSES  OF  THIS  PARAGRAPH,  "GROSS
OFFER  OR  BID"  MEANS  THE  TOTAL  AMOUNT  OR VALUE OFFERED BY THE LIFE
SETTLEMENT PROVIDER FOR THE PURCHASE OF ONE OR MORE LIFE INSURANCE POLI-
CIES, INCLUSIVE OF COMMISSIONS AND FEES;
  (9) THE DATE BY WHICH THE FUNDS WILL BE AVAILABLE TO THE OWNER AND THE
TRANSMITTER OF THE FUNDS;
  (10)  THAT  THE  LIFE SETTLEMENT PROVIDER OR LIFE SETTLEMENT BROKER IS
REQUIRED TO PROVIDE AN OWNER DURING  THE  SOLICITATION  PROCESS  WITH  A
CONSUMER INFORMATION BOOKLET IN A FORM PRESCRIBED BY THE SUPERINTENDENT,
OR  OTHER  SIMILAR  MATERIAL, SUBJECT TO THE APPROVAL OF THE SUPERINTEN-
DENT;
  (11) THAT THE INSURED MAY BE CONTACTED BY EITHER THE  LIFE  SETTLEMENT
PROVIDER  OR  LIFE  SETTLEMENT  BROKER, OR ANY AUTHORIZED REPRESENTATIVE
THEREOF, FOR THE PURPOSE OF DETERMINING THE INSURED'S HEALTH  STATUS  OR
TO  VERIFY  THE INSURED'S ADDRESS, AND THAT THE CONTACT SHALL BE LIMITED
TO ONCE EVERY THREE MONTHS IF THE INSURED HAS A LIFE EXPECTANCY OF  MORE
THAN ONE YEAR, AND NO MORE THAN ONCE PER MONTH IF THE INSURED HAS A LIFE
EXPECTANCY OF ONE YEAR OR LESS;
  (12)  ANY  AFFILIATIONS  OR  CONTRACTUAL ARRANGEMENTS BETWEEN THE LIFE
SETTLEMENT PROVIDER AND THE ISSUER OF THE POLICY TO BE SETTLED;
  (13) ANY AFFILIATIONS OR CONTRACTUAL ARRANGEMENTS WITH ANY OTHER  LIFE
SETTLEMENT  PROVIDER,  LIFE  SETTLEMENT BROKER, LIFE SETTLEMENT INTERME-
DIARY OR PARTY FINANCING THE TRANSACTION;
  (14) THAT A LIFE SETTLEMENT BROKER REPRESENTS EXCLUSIVELY  THE  OWNER,
AND NOT THE INSURER OR THE LIFE SETTLEMENT PROVIDER OR ANY OTHER PERSON,
AND  OWES A FIDUCIARY DUTY TO THE OWNER, INCLUDING A DUTY TO ACT ACCORD-
ING TO THE OWNER'S INSTRUCTIONS AND IN THE BEST INTEREST OF THE OWNER;
  (15) THE NAME, BUSINESS ADDRESS, TELEPHONE NUMBER AND  E-MAIL  ADDRESS
OF  THE INDEPENDENT, THIRD PARTY ESCROW AGENT AND THAT THE OWNER HAS THE
RIGHT TO INSPECT OR RECEIVE COPIES  OF  THE  RELEVANT  ESCROW  OR  TRUST
AGREEMENTS OR DOCUMENTS;
  (16)  THAT  A  CHANGE  OF  OWNERSHIP  COULD  IN  THE  FUTURE LIMIT THE
INSURED'S ABILITY TO PURCHASE FUTURE INSURANCE  ON  THE  INSURED'S  LIFE
BECAUSE THERE IS A LIMIT TO HOW MUCH COVERAGE INSURERS WILL ISSUE ON ONE
LIFE; AND
  (17)  THE  NAME, BUSINESS ADDRESS, TELEPHONE NUMBER AND E-MAIL ADDRESS
OF THE LIFE SETTLEMENT PROVIDER.
  (B) THE LIFE SETTLEMENT  PROVIDER  OR  LIFE  SETTLEMENT  BROKER  SHALL
PROVIDE  TO  THE  INSURED  IN  A SEPARATE WRITTEN DOCUMENT CONSPICUOUSLY
DISPLAYING THE INFORMATION AND DISCLOSURES REQUIRED BY THIS  SUBSECTION.
THE  SEPARATE  DOCUMENT SHALL BE SIGNED BY THE INSURED NO LATER THAN THE
DATE THE LIFE SETTLEMENT CONTRACT IS SIGNED BY ALL PARTIES. THE DOCUMENT
SHALL:
  (1) STATE THAT THE INSURED MAY BE CONTACTED BY EITHER THE LIFE SETTLE-
MENT PROVIDER OR LIFE SETTLEMENT BROKER OR ANY AUTHORIZED REPRESENTATIVE
THEREOF, FOR THE PURPOSE OF DETERMINING THE INSURED'S HEALTH  STATUS  OR
TO  VERIFY  THE INSURED'S ADDRESS, AND THAT THE CONTACT SHALL BE LIMITED
TO ONCE EVERY THREE MONTHS IF THE INSURED HAS A LIFE EXPECTANCY OF  MORE
THAN ONE YEAR, AND NO MORE THAN ONCE PER MONTH IF THE INSURED HAS A LIFE
EXPECTANCY OF ONE YEAR OR LESS;
  (2)  STATE  THAT  A  CHANGE OF OWNERSHIP COULD IN THE FUTURE LIMIT THE
INSURED'S ABILITY TO PURCHASE ADDITIONAL INSURANCE ON THE INSURED'S LIFE
BECAUSE THERE IS A LIMIT TO HOW MUCH COVERAGE INSURERS WILL ISSUE ON ONE
LIFE; AND

S. 9                               22                               A. 9

  (3) CONTAIN THE FOLLOWING LANGUAGE, OR SUCH OTHER LANGUAGE REQUIRED BY
THE SUPERINTENDENT BY REGULATION: "ALL MEDICAL,  FINANCIAL  OR  PERSONAL
INFORMATION  SOLICITED OR OBTAINED BY A LIFE SETTLEMENT PROVIDER OR LIFE
SETTLEMENT BROKER ABOUT AN INSURED, INCLUDING THE INSURED'S IDENTITY  OR
THE  IDENTITY  OF FAMILY MEMBERS, A SPOUSE OR A SIGNIFICANT OTHER MAY BE
DISCLOSED AS NECESSARY TO EFFECT THE LIFE  SETTLEMENT  CONTRACT  BETWEEN
THE  OWNER  AND  PROVIDER. IF YOU ARE ASKED TO PROVIDE THIS INFORMATION,
YOU WILL BE ASKED TO CONSENT TO THE DISCLOSURE. THE INFORMATION  MAY  BE
PROVIDED  TO  SOMEONE  WHO  BUYS  THE  POLICY  OR PROVIDES FUNDS FOR THE
PURCHASE. YOU MAY BE ASKED TO RENEW YOUR PERMISSION TO SHARE INFORMATION
EVERY TWO YEARS".
  (C) THE LIFE SETTLEMENT BROKER SHALL PROVIDE THE OWNER WITH A SEPARATE
WRITTEN DOCUMENT CONSPICUOUSLY DISPLAYING THE  INFORMATION  AND  DISCLO-
SURES REQUIRED BY THIS SUBSECTION. THE SEPARATE DOCUMENT SHALL BE SIGNED
BY THE OWNER AND LIFE SETTLEMENT BROKER, NO LATER THAN THE DATE THE LIFE
SETTLEMENT CONTRACT IS SIGNED BY ALL PARTIES. AT A MINIMUM, THE DOCUMENT
SHALL STATE:
  (1) THE NAME, BUSINESS ADDRESS, TELEPHONE NUMBER AND E-MAIL ADDRESS OF
THE LIFE SETTLEMENT BROKER;
  (2) A FULL, COMPLETE AND ACCURATE DESCRIPTION OF ALL THE OFFERS, COUN-
TER-OFFERS,  ACCEPTANCES  AND  REJECTIONS  RELATING TO THE PROPOSED LIFE
SETTLEMENT CONTRACT;
  (3) ANY AFFILIATIONS OR CONTRACTUAL ARRANGEMENTS WITH ANY LIFE SETTLE-
MENT PROVIDER, OTHER LIFE SETTLEMENT BROKER,  LIFE  SETTLEMENT  INTERME-
DIARY OR ANY FINANCING ENTITY;
  (4)  THE  GROSS  AMOUNT  TO  BE  PAID  PURSUANT TO THE LIFE SETTLEMENT
CONTRACT, THE NET AMOUNT OF THE PROCEEDS TO BE PAID TO THE OWNER  PURSU-
ANT  TO  THE  LIFE SETTLEMENT CONTRACT, THE AMOUNT OF COMPENSATION TO BE
PAID TO THE LIFE SETTLEMENT  BROKER  PURSUANT  TO  THE  LIFE  SETTLEMENT
CONTRACT,  AND  THE NAME OF SUCH LIFE SETTLEMENT BROKER. FOR PURPOSES OF
THIS PARAGRAPH, "GROSS AMOUNT TO BE PAID"  MEANS  THE  TOTAL  AMOUNT  OR
VALUE TO BE PAID BY THE LIFE SETTLEMENT PROVIDER FOR THE PURCHASE OF ONE
OR MORE LIFE INSURANCE POLICIES, INCLUSIVE OF COMMISSIONS AND FEES; AND
  (5)  A  COMPLETE  RECONCILIATION OF THE GROSS OFFER OR BID BY THE LIFE
SETTLEMENT PROVIDER TO THE  NET  AMOUNT  OF  PROCEEDS  OR  VALUE  TO  BE
RECEIVED  BY  THE  OWNER, PROVIDED THAT FOR THE PURPOSE OF THIS SECTION,
"GROSS OFFER OR BID" SHALL MEAN THE TOTAL AMOUNT OR VALUE OFFERED BY THE
LIFE SETTLEMENT PROVIDER FOR THE PURCHASE OF ONE OR MORE LIFE  INSURANCE
POLICIES, INCLUSIVE OF COMMISSIONS AND FEES.
  S 7812. LIFE INSURANCE APPLICATIONS.  (A) WITHOUT LIMITING THE ABILITY
OF  AN  INSURER  TO ASSESS THE INSURABILITY OF A POLICY APPLICANT AND TO
DETERMINE WHETHER OR NOT TO ISSUE THE POLICY, AND IN ADDITION  TO  OTHER
QUESTIONS  AN  INSURER  MAY LAWFULLY POSE TO A LIFE INSURANCE APPLICANT,
INSURERS MAY INQUIRE  IN  THE  APPLICATION  FOR  INSURANCE  WHETHER  THE
PROPOSED  OWNER INTENDS TO PAY PREMIUMS WITH THE ASSISTANCE OF FINANCING
FROM A LENDER THAT WILL USE THE POLICY  AS  COLLATERAL  TO  SUPPORT  THE
FINANCING.
  (B)  THE INSURER MAY INCLUDE THE FOLLOWING NOTICE TO THE APPLICANT AND
THE INSURED, OR OTHER NOTICE ACCEPTABLE TO THE  SUPERINTENDENT,  ON  THE
APPLICATION  OR  AS  AN  AMENDMENT  THERETO:   "IF YOU ENTER INTO A LOAN
ARRANGEMENT WHERE THE POLICY IS  USED  AS  COLLATERAL,  AND  THE  POLICY
CHANGES  OWNERSHIP  AT  SOME  POINT IN THE FUTURE IN SATISFACTION OF THE
LOAN, THEN THE FOLLOWING MAY BE TRUE:
  (1) A CHANGE OF OWNERSHIP MAY LEAD TO A PERSON UNKNOWN TO  YOU  OWNING
AN INTEREST IN THE INSURED'S LIFE;

S. 9                               23                               A. 9

  (2) A CHANGE OF OWNERSHIP MAY LIMIT YOUR ABILITY TO PURCHASE INSURANCE
IN THE FUTURE ON THE INSURED'S LIFE BECAUSE THERE IS A LIMIT TO HOW MUCH
COVERAGE INSURERS WILL ISSUE ON ONE LIFE;
  (3) IF OWNERSHIP OF THE LIFE INSURANCE POLICY CHANGES, AND YOU WISH TO
OBTAIN  MORE INSURANCE COVERAGE ON THE INSURED'S LIFE IN THE FUTURE, THE
INSURED'S HIGHER ISSUE AGE, A CHANGE  IN  HEALTH  STATUS,  AND/OR  OTHER
FACTORS  MAY  REDUCE THE ABILITY TO OBTAIN COVERAGE AND/OR MAY RESULT IN
SIGNIFICANTLY HIGHER PREMIUMS; AND
  (4) YOU SHOULD CONSULT A  PROFESSIONAL  ADVISOR,  SINCE  A  CHANGE  IN
OWNERSHIP  IN SATISFACTION OF THE LOAN MAY RESULT IN TAX CONSEQUENCES TO
THE OWNER."
  S 7813. GENERAL RULES.  (A) A LIFE SETTLEMENT PROVIDER ENTERING INTO A
LIFE SETTLEMENT CONTRACT SHALL FIRST OBTAIN A WRITTEN CONSENT  FROM  THE
INSURED  TO  THE RELEASE OF THE INSURED'S MEDICAL RECORDS SUBJECT TO THE
LIMITATIONS CONTAINED IN SECTION SEVEN THOUSAND  EIGHT  HUNDRED  TEN  OF
THIS ARTICLE.
  (B)  THE INSURER SHALL RESPOND TO A REQUEST FOR VERIFICATION OF COVER-
AGE SUBMITTED BY A LIFE SETTLEMENT PROVIDER, LIFE SETTLEMENT  BROKER  OR
LIFE  SETTLEMENT  INTERMEDIARY  WITHIN  FIFTEEN  DAYS AFTER THE DATE THE
REQUEST IS RECEIVED. THE INSURER SHALL COMPLETE AND ISSUE THE  VERIFICA-
TION  OF  COVERAGE  OR INDICATE THE SPECIFIC REASONS WHY IT IS UNABLE TO
RESPOND. IN ITS RESPONSE, THE INSURER SHALL INDICATE WHETHER,  BASED  ON
THE  MEDICAL EVIDENCE AND DOCUMENTS PROVIDED, THE INSURER IS PURSUING OR
INTENDS TO PURSUE AN INVESTIGATION REGARDING THE VALIDITY OF THE POLICY.
  (C) THE LIFE SETTLEMENT PROVIDER SHALL  GIVE  WRITTEN  NOTICE  TO  THE
INSURER THAT ISSUED THE POLICY WITHIN TEN DAYS AFTER THE LIFE SETTLEMENT
CONTRACT IS EXECUTED BY ALL PARTIES.
  (D)  UNLESS  THE  INSURER IS PURSUING OR INTENDS TO PURSUE AN INVESTI-
GATION, THE INSURER SHALL, WITHIN FIFTEEN DAYS OF RECEIPT OF  A  REQUEST
FOR  A CHANGE OF OWNERSHIP OR ASSIGNMENT USED TO EFFECTUATE THE TRANSFER
OR ASSIGNMENT OF THE OWNER'S RIGHTS OR BENEFITS UNDER A POLICY TO A LIFE
SETTLEMENT PROVIDER, PROCESS THE CHANGE OF OWNERSHIP OR  ASSIGNMENT  AND
NOTIFY  THE  LIFE SETTLEMENT PROVIDER AND THE OWNER THAT THE TRANSFER OR
ASSIGNMENT HAS BEEN EFFECTUATED.
  (E) IF A LIFE SETTLEMENT BROKER PERFORMS ANY ACTIVITY REQUIRED OF  THE
LIFE  SETTLEMENT  PROVIDER  IN  THIS SECTION OR PROVIDES ANY DISCLOSURES
REQUIRED BY SECTION SEVEN THOUSAND EIGHT HUNDRED ELEVEN OF THIS ARTICLE,
THEN THE LIFE SETTLEMENT PROVIDER  IS  DEEMED  TO  HAVE  PERFORMED  THAT
ACTIVITY OR PROVIDED THAT DISCLOSURE.
  (F)  ALL  MEDICAL INFORMATION SOLICITED OR OBTAINED BY ANY LICENSEE OR
ANY OTHER PERSON SHALL BE SUBJECT TO THE PROVISIONS APPLICABLE TO HEALTH
CARE PROVIDERS UNDER THE PUBLIC  HEALTH  LAW  AND  ALL  APPLICABLE  LAWS
RELATING  TO  CONFIDENTIALITY  OF MEDICAL INFORMATION, PROVIDED THAT, TO
THE EXTENT THAT THIS CHAPTER PROVIDES  FOR  GREATER  CONFIDENTIALITY  OF
MEDICAL INFORMATION, THIS CHAPTER SHALL GOVERN.
  (G)(1) EVERY LIFE SETTLEMENT CONTRACT SHALL PROVIDE THAT THE OWNER HAS
AN  UNCONDITIONAL RIGHT TO RESCIND THE LIFE SETTLEMENT CONTRACT FROM THE
TIME OF EXECUTION OF THE CONTRACT UNTIL FIFTEEN DAYS AFTER  THE  RECEIPT
OF THE LIFE SETTLEMENT PROCEEDS BY THE OWNER BY GIVING NOTICE OF RESCIS-
SION TO THE LIFE SETTLEMENT PROVIDER BY MIDNIGHT OF THE FIFTEENTH DAY.
  (2)  WITHIN  FIVE  DAYS AFTER RECEIPT OF THE NOTICE OF RESCISSION, THE
LIFE SETTLEMENT PROVIDER SHALL PROVIDE A WRITTEN STATEMENT TO THE  OWNER
ITEMIZING  THE  AMOUNT OF ALL LIFE SETTLEMENT PROCEEDS AND ANY PREMIUMS,
LOANS AND LOAN INTEREST PAID OR TO BE PAID AS OF A DATE CERTAIN  AS  MAY
BE REQUESTED BY THE OWNER.

S. 9                               24                               A. 9

  (3)  WITHIN  FIFTEEN  DAYS  AFTER THE RECEIPT OF THE WRITTEN, ITEMIZED
STATEMENT BY THE OWNER, THE OWNER MUST REPAY ALL  SUCH  LIFE  SETTLEMENT
PROCEEDS  AND  ANY  PREMIUMS,  LOANS  AND LOAN INTEREST PAID BY THE LIFE
SETTLEMENT PROVIDER.
  (4) IF THE INSURED DIES DURING THE RESCISSION PERIOD, THE LIFE SETTLE-
MENT  CONTRACT SHALL BE DEEMED TO HAVE BEEN RESCINDED, SUBJECT TO REPAY-
MENT OF ALL LIFE SETTLEMENT PROCEEDS AND ANY PREMIUMS,  LOANS  AND  LOAN
INTEREST PAID BY THE LIFE SETTLEMENT PROVIDER.
  (5)  WITHIN  FIVE  DAYS AFTER RECEIPT OF NOTICE OF THE INSURED'S DEATH
DURING THE RESCISSION PERIOD, THE LIFE SETTLEMENT PROVIDER SHALL PROVIDE
A WRITTEN STATEMENT TO THE OWNER OR, IF THE OWNER IS  DECEASED,  TO  THE
LEGAL  REPRESENTATIVE OF THE OWNER'S ESTATE, ITEMIZING THE AMOUNT OF ALL
LIFE SETTLEMENT PROCEEDS AND ANY PREMIUMS, LOANS AND LOAN INTEREST  PAID
OR  TO  BE PAID AS OF A DATE CERTAIN AS MAY BE REQUESTED BY THE OWNER OR
THE LEGAL REPRESENTATIVE OF THE OWNER'S ESTATE. AS SOON AS  PRACTICABLE,
THE  OWNER  OR  THE OWNER'S ESTATE SHALL REPAY ALL SUCH PROCEEDS AND ANY
PREMIUMS, LOANS AND LOAN INTEREST PAID BY THE LIFE SETTLEMENT PROVIDER.
  (H) WITHIN THREE BUSINESS DAYS AFTER RECEIPT FROM THE OWNER  OF  DOCU-
MENTS TO EFFECT THE TRANSFER OF THE POLICY THAT IS THE SUBJECT OF A LIFE
SETTLEMENT  CONTRACT,  THE  LIFE  SETTLEMENT  PROVIDER SHALL DEPOSIT THE
PROCEEDS OF THE LIFE SETTLEMENT CONTRACT INTO AN ESCROW OR TRUST ACCOUNT
IN A STATE OR FEDERALLY CHARTERED FINANCIAL  INSTITUTION.    THE  ESCROW
AGENT  OR  TRUSTEE SHALL BE REQUIRED TO TRANSFER THE PROCEEDS DUE TO THE
OWNER WITHIN THREE BUSINESS DAYS OF ACKNOWLEDGEMENT OF THE TRANSFER FROM
THE INSURER.
  (I) FAILURE TO TENDER THE LIFE SETTLEMENT  CONTRACT  PROCEEDS  TO  THE
OWNER  BY  THE DATE DISCLOSED TO THE OWNER SHALL RENDER THE LIFE SETTLE-
MENT CONTRACT VOIDABLE BY THE OWNER FOR LACK OF CONSIDERATION UNTIL  THE
TIME  THE  PROCEEDS ARE TENDERED TO AND ACCEPTED BY THE OWNER. A FAILURE
TO GIVE WRITTEN NOTICE OF THE RIGHT OF RESCISSION HEREUNDER  SHALL  TOLL
THE  RIGHT  OF  RESCISSION UNTIL THIRTY DAYS AFTER THE WRITTEN NOTICE OF
THE RIGHT OF RESCISSION HAS BEEN GIVEN.
  (J)(1) NO PERSON, AT ANY TIME PRIOR TO, OR AT THE TIME OF, THE  APPLI-
CATION  FOR,  OR  ISSUANCE  OF,  A POLICY, OR DURING THE TWO-YEAR PERIOD
COMMENCING WITH THE DATE OF ISSUANCE OF THE POLICY, SHALL ENTER  INTO  A
LIFE  SETTLEMENT CONTRACT, REGARDLESS OF THE DATE THE COMPENSATION IS TO
BE PROVIDED AND REGARDLESS OF THE DATE THE ASSIGNMENT,  TRANSFER,  SALE,
DEVISE  OR BEQUEST OF THE POLICY IS TO OCCUR. THIS PROHIBITION SHALL NOT
APPLY IF THE OWNER CERTIFIES TO THE LIFE SETTLEMENT PROVIDER THAT:
  (A) THE POLICY WAS ISSUED UPON  THE  OWNER'S  EXERCISE  OF  CONVERSION
RIGHTS  ARISING  OUT OF A POLICY, PROVIDED THE TOTAL OF THE TIME COVERED
UNDER THE CONVERSION POLICY PLUS THE TIME COVERED UNDER THE PRIOR POLICY
IS AT LEAST TWENTY-FOUR MONTHS. THE TIME COVERED UNDER  A  GROUP  POLICY
SHALL BE CALCULATED WITHOUT REGARD TO A CHANGE IN INSURERS, PROVIDED THE
COVERAGE HAS BEEN CONTINUOUS AND UNDER THE SAME GROUP SPONSORSHIP; OR
  (B)  ONE  OR  MORE  OF  THE  FOLLOWING CONDITIONS, FOR WHICH THE OWNER
SUBMITS INDEPENDENT EVIDENCE TO THE LIFE SETTLEMENT PROVIDER, HAVE  BEEN
MET WITHIN THE TWO-YEAR PERIOD:
  (I) THE OWNER OR INSURED IS TERMINALLY OR CHRONICALLY ILL;
  (II) THE OWNER OR INSURED DISPOSES OF OWNERSHIP INTERESTS IN A CLOSELY
HELD  CORPORATION,  PURSUANT  TO  THE TERMS OF A BUYOUT OR OTHER SIMILAR
AGREEMENT IN EFFECT AT THE  TIME  THE  INSURANCE  POLICY  WAS  INITIALLY
ISSUED;
  (III) THE OWNER'S SPOUSE DIES;
  (IV) THE OWNER DIVORCES HIS OR HER SPOUSE;

S. 9                               25                               A. 9

  (V) THE OWNER RETIRES FROM FULL-TIME EMPLOYMENT OR INVOLUNTARILY CEAS-
ES EMPLOYMENT;
  (VI) THE OWNER BECOMES PHYSICALLY OR MENTALLY DISABLED AND A PHYSICIAN
DETERMINES  THAT  THE  DISABILITY  PREVENTS  THE  OWNER FROM MAINTAINING
FULL-TIME EMPLOYMENT;
  (VII) A FINAL ORDER, JUDGMENT OR DECREE  IS  ENTERED  BY  A  COURT  OF
COMPETENT  JURISDICTION,  ON THE APPLICATION OF A CREDITOR OF THE OWNER,
ADJUDICATING THE OWNER BANKRUPT OR INSOLVENT, OR  APPROVING  A  PETITION
SEEKING REORGANIZATION OF THE OWNER OR APPOINTING A RECEIVER, TRUSTEE OR
LIQUIDATOR TO ALL OR A SUBSTANTIAL PART OF THE OWNER'S ASSETS; OR
  (VIII)  ANY  OTHER  CONDITION THAT THE SUPERINTENDENT MAY DETERMINE BY
REGULATION TO BE AN EXTRAORDINARY CIRCUMSTANCE  FOR  THE  OWNER  OR  THE
INSURED.
  (2) COPIES OF THE INDEPENDENT EVIDENCE REQUIRED BY SUBPARAGRAPH (B) OF
PARAGRAPH  ONE OF THIS SUBSECTION SHALL BE SUBMITTED TO THE INSURER WHEN
THE LIFE SETTLEMENT PROVIDER  SUBMITS  A  REQUEST  TO  THE  INSURER  FOR
VERIFICATION OF COVERAGE. THE COPIES SHALL BE ACCOMPANIED BY A LETTER OF
ATTESTATION  FROM  THE LIFE SETTLEMENT PROVIDER THAT THE COPIES ARE TRUE
AND CORRECT COPIES OF THE DOCUMENTS  RECEIVED  BY  THE  LIFE  SETTLEMENT
PROVIDER.  NOTHING  IN THIS SECTION SHALL PROHIBIT AN INSURER FROM EXER-
CISING ITS RIGHT TO CONTEST THE VALIDITY OF ANY POLICY.
  (3) FOR THE PURPOSES OF THIS SECTION A PERSON IS:
  (A) TERMINALLY ILL IF THE INDIVIDUAL HAS AN ILLNESS, SICKNESS OR PHYS-
ICAL CONDITION THAT CAN REASONABLY BE EXPECTED TO  RESULT  IN  DEATH  IN
TWENTY-FOUR MONTHS OR LESS; OR
  (B)  CHRONICALLY  ILL  IF  THAT  INDIVIDUAL  HAS  BEEN  CERTIFIED BY A
LICENSED HEALTH CARE PRACTITIONER AS:
  (I) BEING UNABLE TO PERFORM WITHOUT SUBSTANTIAL ASSISTANCE FROM ANOTH-
ER INDIVIDUAL AT LEAST TWO ACTIVITIES OF  DAILY  LIVING  (I.E.,  EATING,
TOILETING,  TRANSFERRING,  BATHING, DRESSING OR CONTINENCE) FOR A PERIOD
OF AT LEAST NINETY DAYS, DUE TO A LOSS OF FUNCTIONAL CAPACITY;
  (II) REQUIRING SUBSTANTIAL SUPERVISION TO PROTECT THE INDIVIDUAL  FROM
THREATS  TO  HEALTH  AND SAFETY DUE TO SEVERE COGNITIVE IMPAIRMENT FOR A
PERIOD OF AT LEAST NINETY DAYS, DUE TO A LOSS OF FUNCTIONAL CAPACITY; OR
  (III) HAVING A LEVEL OF DISABILITY SIMILAR TO THAT DESCRIBED IN CLAUSE
(I) OF THIS SUBPARAGRAPH, AS DETERMINED BY THE UNITED  STATES  SECRETARY
OF HEALTH AND HUMAN SERVICES.
  (K)  CONTACTS  WITH  THE  INSURED  FOR  THE PURPOSE OF DETERMINING THE
HEALTH STATUS OF THE INSURED BY  A  LICENSED  LIFE  SETTLEMENT  PROVIDER
AFTER  THE LIFE SETTLEMENT CONTRACT HAS BEEN EXECUTED SHALL BE MADE ONLY
BY THE LICENSED LIFE SETTLEMENT PROVIDER  OR  LICENSED  LIFE  SETTLEMENT
BROKER,  OR  ANY AUTHORIZED REPRESENTATIVE THEREOF, AND SHALL BE LIMITED
TO ONCE EVERY THREE MONTHS FOR AN INSURED WITH A LIFE EXPECTANCY OF MORE
THAN ONE YEAR, AND TO NO MORE THAN ONCE PER MONTH FOR AN INSURED WITH  A
LIFE EXPECTANCY OF ONE YEAR OR LESS.
  (L) THE LIFE SETTLEMENT BROKER SHALL REPRESENT ONLY THE OWNER AND OWES
A  FIDUCIARY DUTY TO THE OWNER, INCLUDING A DUTY TO ACT ACCORDING TO THE
OWNER'S INSTRUCTIONS AND IN THE BEST INTEREST OF THE OWNER.
  (M) A LIFE  SETTLEMENT  PROVIDER,  LIFE  SETTLEMENT  BROKER,  OR  LIFE
SETTLEMENT  INTERMEDIARY  SHALL  BE  RESPONSIBLE  FOR THE ACTIONS OF ITS
AUTHORIZED REPRESENTATIVE.
  (N)(1) A LIFE SETTLEMENT INTERMEDIARY'S SERVICES SHALL NOT BE  LIMITED
TO  LIFE SETTLEMENT PROVIDERS OR LIFE SETTLEMENT BROKERS THAT ARE AFFIL-
IATES, PARENTS, OR SUBSIDIARIES OF THE LIFE SETTLEMENT INTERMEDIARY.
  (2) A  LIFE  SETTLEMENT  INTERMEDIARY  SHALL  ESTABLISH  AND  MAINTAIN
SYSTEMS, PRACTICES AND PROCEDURES TO ENSURE THAT:

S. 9                               26                               A. 9

  (A)  EVERY  TRANSACTION WITH AN AFFILIATE, PARENT OR SUBSIDIARY OF THE
LIFE SETTLEMENT INTERMEDIARY IS FAIR AND EQUITABLE AND CONDUCTED  ON  AN
ARMS-LENGTH BASIS; AND
  (B) AN AFFILIATE, PARENT OR SUBSIDIARY OF THE LIFE SETTLEMENT INTERME-
DIARY  IS  NOT GRANTED OR PROVIDED WITH PREFERENTIAL TREATMENT OR ACCESS
TO INFORMATION OR SERVICES THAT ARE NOT GRANTED OR PROVIDED TO AN  UNAF-
FILIATED  LIFE  SETTLEMENT  PROVIDER  OR  LIFE  SETTLEMENT  BROKER  THAT
CONDUCTS BUSINESS WITH THE LIFE SETTLEMENT INTERMEDIARY.
  (O) A LIFE SETTLEMENT PROVIDER MAY SELL, ASSIGN, PLEDGE  OR  OTHERWISE
TRANSFER  THE  OWNERSHIP  OF  A  SETTLED  POLICY ONLY TO A LICENSED LIFE
SETTLEMENT PROVIDER, AN ACCREDITED INVESTOR OR  QUALIFIED  INSTITUTIONAL
BUYER,  FINANCING  ENTITY,  SPECIAL  PURPOSE ENTITY, OR RELATED PROVIDER
TRUST; PROVIDED, HOWEVER, A LIFE SETTLEMENT PROVIDER MAY  SELL,  ASSIGN,
PLEDGE  OR  OTHERWISE TRANSFER A BENEFICIAL INTEREST IN A SETTLED POLICY
TO SOMEONE OTHER THAN A LIFE SETTLEMENT PROVIDER LICENSED IN THIS STATE,
AN ACCREDITED INVESTOR OR QUALIFIED INSTITUTIONAL BUYER, FINANCING ENTI-
TY, SPECIAL PURPOSE ENTITY, OR RELATED PROVIDER TRUST IF A LICENSED LIFE
SETTLEMENT PROVIDER CONTINUES TO  ADMINISTER  AND  SERVICE  THE  SETTLED
POLICY  AND  PROTECTS  THE  PRIVACY OF THE INSURED AND OWNER PURSUANT TO
SECTION SEVEN THOUSAND EIGHT HUNDRED TEN OF THIS ARTICLE.
  (P) THE FAILURE TO FOLLOW THE PROVISIONS OF THIS SECTION  SHALL  BE  A
DEFINED VIOLATION UNDER ARTICLE TWENTY-FOUR OF THIS CHAPTER.
  S 7814. PROHIBITED PRACTICES.  (A) NO PERSON SHALL:
  (1)  ENTER  INTO  A  LIFE  SETTLEMENT  CONTRACT IF THE PERSON KNOWS OR
REASONABLY SHOULD HAVE KNOWN THAT THE POLICY WAS OBTAINED  IN  A  FALSE,
DECEPTIVE OR MISLEADING WAY;
  (2)  ENGAGE  IN ANY TRANSACTION, PRACTICE OR COURSE OF BUSINESS IF THE
PERSON KNOWS OR REASONABLY SHOULD HAVE KNOWN  THAT  THE  INTENT  WAS  TO
AVOID THE DISCLOSURE OR OTHER NOTICE REQUIREMENTS OF THIS ARTICLE;
  (3)  ENGAGE  IN  ANY FRAUDULENT ACT OR PRACTICE IN CONNECTION WITH ANY
TRANSACTION RELATING TO ANY LIFE SETTLEMENT;
  (4)(A) ENTER INTO A PREMIUM FINANCE LOAN WITH AN APPLICANT FOR  A  NEW
POLICY  OR  AN  OWNER,  PURSUANT  TO  WHICH THE PERSON PROVIDING PREMIUM
FINANCING, OR ANY AFFILIATE, PARENT CORPORATION  OR  SUBSIDIARY  OF  THE
PERSON, SHALL RECEIVE ANY PROCEEDS, FEES OR OTHER CONSIDERATION, DIRECT-
LY  OR  INDIRECTLY,  FROM THE POLICY OR OWNER OF THE POLICY OR ANY OTHER
PERSON, OTHER THAN COMMISSIONS EARNED BY A LICENSED  INSURANCE  PRODUCER
ON  THE  POLICY,  WITH  RESPECT TO THE PREMIUM FINANCE LOAN, THAT ARE IN
ADDITION TO THE AMOUNTS REQUIRED TO PAY THE PRINCIPAL, INTEREST AND  ANY
REASONABLE  COSTS,  FEES  OR EXPENSES INCURRED BY THE LENDER OR BORROWER
RELATED TO THE PREMIUM FINANCE LOAN OR SUBSEQUENT  SALE  OF  SUCH  LOAN;
PROVIDED,  FURTHER, THAT ANY PAYMENTS, CHARGES, FEES OR OTHER AMOUNTS IN
ADDITION TO THE AMOUNTS REQUIRED TO PAY THE PRINCIPAL, INTEREST AND  ANY
REASONABLE  COSTS OR EXPENSES INCURRED BY THE LENDER OR BORROWER RELATED
TO THE PREMIUM FINANCE LOAN SHALL BE REMITTED TO THE ORIGINAL  OWNER  OF
THE  POLICY  OR  TO THE ORIGINAL OWNER'S ESTATE IF THE ORIGINAL OWNER IS
NOT LIVING AT THE TIME OF THE  DETERMINATION  OF  THE  OVERPAYMENT.  FOR
PURPOSES  OF THIS PARAGRAPH, "OWNER" MEANS THE OWNER OF A POLICY WHETHER
OR NOT ENTERING INTO, OR OFFERING  TO  ENTER  INTO,  A  LIFE  SETTLEMENT
CONTRACT;
  (B) IF, AT ANY TIME, A POLICY THAT IS THE SUBJECT OF A PREMIUM FINANCE
LOAN  SPECIFIED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH IS SOLD, ASSIGNED,
TRANSFERRED, DEVISED OR BEQUEATHED PURSUANT TO THE TERMS  OF  A  PREMIUM
FINANCE  LOAN,  ANY  PROCEEDS OR OTHER CONSIDERATION RECEIVED OTHER THAN
THE AMOUNTS SPECIFIED IN SUBPARAGRAPH (A) OF  THIS  PARAGRAPH  SHALL  BE

S. 9                               27                               A. 9

REMITTED  TO THE ORIGINAL OWNER OF THE POLICY OR TO THE ORIGINAL OWNER'S
ESTATE IF THE ORIGINAL OWNER IS NOT THEN LIVING;
  (5)  WITH  RESPECT  TO ANY LIFE SETTLEMENT CONTRACT, KNOWINGLY FAIL TO
DISCLOSE ANY AFFILIATION OR CONTRACTUAL ARRANGEMENT AS REQUIRED BY  THIS
ARTICLE;
  (6)  DIRECTLY  OR  INDIRECTLY,  PURCHASE  OR OBTAIN AN INTEREST IN ANY
POLICY THAT IS THE SUBJECT OF  A  LIFE  SETTLEMENT  CONTRACT  WHERE  THE
PERSON HAS ACTED AS A LIFE SETTLEMENT BROKER OR LIFE SETTLEMENT INTERME-
DIARY  WITH  RESPECT  TO  THE  POLICY,  UNLESS SUCH AFFILIATION HAS BEEN
DISCLOSED TO THE OWNER PURSUANT TO PARAGRAPH THREE OF SUBSECTION (C)  OF
SECTION  SEVEN THOUSAND EIGHT HUNDRED ELEVEN OF THIS ARTICLE; AND (A) IF
A LIFE SETTLEMENT BROKER, THE BROKER HAS PROVIDED ALL OFFERS AND COUNTER
OFFERS PURSUANT TO PARAGRAPH TWO OF  SUBSECTION  (C)  OF  SECTION  SEVEN
THOUSAND  EIGHT  HUNDRED  ELEVEN  OF THIS ARTICLE, AND HAS CONDUCTED THE
TRANSACTION ON A FAIR  AND  EQUITABLE  ARM-LENGTH  BASIS;  OR  (B)  WITH
RESPECT  TO  A  LIFE  SETTLEMENT INTERMEDIARY, THE INTERMEDIARY COMPLIES
WITH SUBSECTION (O) OF SECTION SEVEN THOUSAND EIGHT HUNDRED THIRTEEN  OF
THIS ARTICLE;
  (7)  DIRECTLY  OR  INDIRECTLY  PROVIDE  ANY COMPENSATION TO ANY PERSON
ACTING IN THIS STATE AS A LIFE SETTLEMENT BROKER, AND  NO  PERSON  SHALL
ACCEPT  ANY  SUCH  COMPENSATION,  UNLESS  THE  PERSON IS A LICENSED LIFE
SETTLEMENT BROKER PURSUANT TO THE PROVISIONS OF SECTION TWO THOUSAND ONE
HUNDRED THIRTY-SEVEN OF THIS CHAPTER;
  (8) DIRECTLY OR INDIRECTLY PAY ANY REFERRAL OR FINDER'S FEE OR PROVIDE
ANY OTHER COMPENSATION TO ANY OWNER'S PHYSICIAN,  ATTORNEY,  ACCOUNTANT,
INSURANCE  PRODUCER,  INSURANCE  CONSULTANT,  OR  OTHER PERSON PROVIDING
MEDICAL, LEGAL OR FINANCIAL PLANNING SERVICES TO THE OWNER,  OR  TO  ANY
OTHER  PERSON,  OTHER  THAN  A  LIFE SETTLEMENT BROKER, REPRESENTING THE
OWNER WITH RESPECT TO THE LIFE SETTLEMENT CONTRACT, AND NO PERSON  SHALL
ACCEPT ANY SUCH FEE OR COMPENSATION;
  (9)  DIRECTLY  OR INDIRECTLY PROVIDE COMPENSATION TO A LIFE SETTLEMENT
BROKER, EXCEPT WHERE THE COMPENSATION IS FOR A SPECIFIC LIFE  SETTLEMENT
CONTRACT AND IS CLEARLY DISCLOSED TO THE OWNER AS REQUIRED IN THIS ARTI-
CLE;
  (10) DIRECTLY OR INDIRECTLY ENGAGE IN ANY ACT DETERMINED BY THE SUPER-
INTENDENT  TO BE AN UNFAIR OR DECEPTIVE ACT OR PRACTICE PURSUANT TO THIS
CHAPTER;
  (11) REMOVE, CONCEAL, ALTER, DESTROY OR SEQUESTER FROM THE SUPERINTEN-
DENT THE ASSETS OR RECORDS OF A LIFE SETTLEMENT PROVIDER,  LIFE  SETTLE-
MENT BROKER, LIFE SETTLEMENT INTERMEDIARY OR OTHER PERSON ENGAGED IN THE
BUSINESS OF LIFE SETTLEMENTS;
  (12) MISREPRESENT OR CONCEAL THE FINANCIAL CONDITION OF A LIFE SETTLE-
MENT PROVIDER; OR
  (13)  IN  RELATION  TO THE BUSINESS OF LIFE SETTLEMENTS, FILE WITH THE
SUPERINTENDENT  A  DOCUMENT  CONTAINING  MATERIALLY  FALSE   INFORMATION
CONCERNING  ANY  FACT  MATERIAL THERETO OR OTHERWISE CONCEAL INFORMATION
ABOUT A FACT MATERIAL THERETO FROM THE SUPERINTENDENT.
  (B) NO LIFE SETTLEMENT PROVIDER, LIFE SETTLEMENT BROKER, LIFE  SETTLE-
MENT INTERMEDIARY, OWNER OR ANY OTHER PERSON, AS A CONDITION OF ENTERING
INTO  A LIFE SETTLEMENT CONTRACT, SHALL REQUEST OR REQUIRE AN INSURED TO
SUBMIT TO A MEDICAL EXAMINATION AT ANY TIME SUBSEQUENT TO THE SETTLEMENT
OF THE POLICY.
  (C) NO LIFE SETTLEMENT PROVIDER SHALL ENTER INTO ANY  LIFE  SETTLEMENT
CONTRACT IN WHICH PAYMENTS OF PROCEEDS ARE MADE IN INSTALLMENTS.
  (D)  NO  LIFE  SETTLEMENT  PROVIDER,  LIFE  SETTLEMENT  BROKER OR LIFE
SETTLEMENT INTERMEDIARY SHALL DIRECTLY OR INDIRECTLY:

S. 9                               28                               A. 9

  (1) BE A PARTY TO OR ENTER INTO AN AGREEMENT OR UNDERSTANDING LIMITING
OR RESTRICTING AN OWNER'S OR LIFE SETTLEMENT BROKER'S  ABILITY  TO  SEEK
COMPETITIVE  BIDS ON POLICIES TO THE EXTENT THAT THE AGREEMENT OR UNDER-
STANDING UNLAWFULLY  RESTRAINS  TRADE  OR  CONSTITUTES  ANTI-COMPETITIVE
BEHAVIOR;
  (2)  MONOPOLIZE  OR ATTEMPT TO MONOPOLIZE, OR COMBINE OR CONSPIRE WITH
ANY OTHER PERSON OR PERSONS TO MONOPOLIZE, IN THIS STATE,  THE  BUSINESS
OF LIFE SETTLEMENTS;
  (3)  BE  A  PARTY TO OR ENTER INTO AN AGREEMENT WITH A LIFE SETTLEMENT
PROVIDER, LIFE SETTLEMENT BROKER OR LIFE SETTLEMENT INTERMEDIARY TO  THE
EXTENT THAT THE AGREEMENT FIXES OR LIMITS THE VALUE PAID TO OWNERS;
  (4)  BE A PARTY TO OR ENTER INTO ANY AGREEMENT OR COMMUNICATION WITH A
LIFE SETTLEMENT PROVIDER OR LIFE SETTLEMENT INTERMEDIARY WITH RESPECT TO
THE TERMS TO BE OFFERED TO AN OWNER TO THE EXTENT THAT THE AGREEMENT  OR
UNDERSTANDING UNLAWFULLY RESTRAINS TRADE OR CONSTITUTES ANTI-COMPETITIVE
BEHAVIOR;
  (5)  BE  A PARTY TO OR ENTER INTO ANY AGREEMENT WITH A LIFE SETTLEMENT
PROVIDER, LIFE SETTLEMENT BROKER, LIFE SETTLEMENT INTERMEDIARY OR  OTHER
PERSON  TO RESTRAIN TRADE OR ENGAGE IN ANY OTHER ANTI-COMPETITIVE BEHAV-
IOR;
  (6) BE PARTY TO OR ENTER INTO ANY AGREEMENT  WITH  A  LIFE  SETTLEMENT
PROVIDER,  LIFE SETTLEMENT BROKER, LIFE SETTLEMENT INTERMEDIARY OR OTHER
PERSON THE EFFECT OF WHICH MAY BE SUBSTANTIALLY TO LESSEN COMPETITION IN
THE BUSINESS OF LIFE SETTLEMENTS SUBJECT TO THIS CHAPTER; OR
  (7) BE A PARTY TO OR ENTER INTO ANY AGREEMENT WITH A  LIFE  SETTLEMENT
PROVIDER,  LIFE SETTLEMENT BROKER, LIFE SETTLEMENT INTERMEDIARY OR OTHER
PERSON TO REFUSE TO CONDUCT BUSINESS WITH ANY PERSON IN THE BUSINESS  OF
LIFE SETTLEMENTS.
  (E) NO LIFE SETTLEMENT INTERMEDIARY SHALL:
  (1)  REPRESENT,  SOLICIT,  NEGOTIATE  OR ACT ON BEHALF OF, AN OWNER, A
LIFE SETTLEMENT PROVIDER, OR A LIFE SETTLEMENT BROKER; OR
  (2) ACT AS A LIFE SETTLEMENT PROVIDER OR LIFE SETTLEMENT BROKER.
  (F) NO INSURER SHALL PROHIBIT AN INSURANCE AGENT FROM DISCLOSING TO  A
CLIENT THE AVAILABILITY OF A LIFE SETTLEMENT CONTRACT.
  (G)  THE  FAILURE  TO FOLLOW THE PROVISIONS OF THIS SECTION SHALL BE A
DEFINED VIOLATION UNDER ARTICLE TWENTY-FOUR OF THIS CHAPTER.
  S 7815. STRANGER-ORIGINATED LIFE INSURANCE.    (A)  IN  THIS  CHAPTER,
"STRANGER-ORIGINATED LIFE INSURANCE" MEANS ANY ACT, PRACTICE OR ARRANGE-
MENT,  AT  OR  PRIOR  TO  POLICY ISSUANCE, TO INITIATE OR FACILITATE THE
ISSUANCE OF A POLICY FOR THE INTENDED BENEFIT OF A PERSON  WHO,  AT  THE
TIME OF POLICY ORIGINATION, HAS NO INSURABLE INTEREST IN THE LIFE OF THE
INSURED UNDER THE LAWS OF THIS STATE, INCLUDING:
  (1)  THE  PURCHASE OF LIFE INSURANCE WITH RESOURCES OR GUARANTEES FROM
OR THROUGH A PERSON THAT, AT THE TIME OF POLICY  INITIATION,  COULD  NOT
LAWFULLY INITIATE THE POLICY;
  (2) AN ARRANGEMENT OR OTHER AGREEMENT TO TRANSFER THE OWNERSHIP OF THE
POLICY OR THE POLICY BENEFITS TO ANOTHER PERSON; OR
  (3) A TRUST OR SIMILAR ARRANGEMENT THAT IS USED, DIRECTLY OR INDIRECT-
LY,  FOR THE PURPOSE OF PURCHASING ONE OR MORE POLICIES FOR THE INTENDED
BENEFIT OF ANOTHER PERSON IN A MANNER THAT VIOLATES THE INSURABLE INTER-
EST LAWS OF THIS STATE.
  (B) STRANGER-ORIGINATED LIFE INSURANCE  ARRANGEMENTS  DO  NOT  INCLUDE
LAWFUL  LIFE  SETTLEMENT CONTRACTS AS PERMITTED BY THIS ARTICLE OR THOSE
PRACTICES SET FORTH IN PARAGRAPH THREE  OF  SUBSECTION  (K)  OF  SECTION
SEVEN  THOUSAND  EIGHT  HUNDRED  TWO OF THIS ARTICLE, PROVIDED THAT SUCH

S. 9                               29                               A. 9

CONTRACTS OR PRACTICES ARE NOT FOR THE  PURPOSE  OF  EVADING  REGULATION
UNDER THIS ARTICLE.
  (C) NO PERSON SHALL DIRECTLY OR INDIRECTLY ENGAGE IN ANY ACT, PRACTICE
OR ARRANGEMENT THAT CONSTITUTES STRANGER-ORIGINATED LIFE INSURANCE.
  (D)  THE  FAILURE  TO  FOLLOW  THE PROVISION OF SUBSECTION (C) OF THIS
SECTION SHALL BE A DEFINED VIOLATION UNDER ARTICLE TWENTY-FOUR  OF  THIS
CHAPTER.
  S  7816.  PENALTIES  AND CIVIL REMEDIES.   (A)(1) IF, AFTER NOTICE AND
HEARING, THE SUPERINTENDENT DETERMINES THAT ANY INFORMATION REQUIRED  BY
SUBSECTION  (A) OR (C) OF SECTION SEVEN THOUSAND EIGHT HUNDRED ELEVEN OF
THIS ARTICLE KNOWINGLY WAS NOT PROVIDED  OR  KNOWINGLY  WAS  DELAYED  IN
BEING  PROVIDED  BY THE LIFE SETTLEMENT BROKER TO THE MATERIAL DETRIMENT
OF THE OWNER, THEN THE SUPERINTENDENT, IN ADDITION TO ANY OTHER  PENALTY
PRESCRIBED  BY LAW, MAY REQUIRE THE LIFE SETTLEMENT BROKER TO PAY TO THE
PEOPLE OF THIS STATE AN AMOUNT NOT TO EXCEED  THE  COMPENSATION  DUE  OR
PROVIDED TO THE LIFE SETTLEMENT BROKER.
  (2)  IF,  AFTER NOTICE AND HEARING, THE SUPERINTENDENT DETERMINES THAT
ANY INFORMATION REQUIRED BY SUBSECTION (A)  OF  SECTION  SEVEN  THOUSAND
EIGHT HUNDRED ELEVEN OF THIS ARTICLE KNOWINGLY WAS NOT PROVIDED OR KNOW-
INGLY  WAS  DELAYED IN BEING PROVIDED BY THE LIFE SETTLEMENT PROVIDER TO
THE MATERIAL DETRIMENT OF THE OWNER, THEN THE SUPERINTENDENT,  IN  ADDI-
TION  TO  ANY  OTHER  PENALTY  PRESCRIBED  BY  LAW, MAY REQUIRE THE LIFE
SETTLEMENT PROVIDER TO PAY TO THE PEOPLE OF THIS STATE AN AMOUNT NOT  TO
EXCEED FORTY-FIVE THOUSAND DOLLARS.
  (B)  IF,  AFTER  NOTICE AND HEARING, THE SUPERINTENDENT DETERMINES ANY
PERSON KNOWINGLY VIOLATED SUBSECTION (C) OF SECTION SEVEN THOUSAND EIGHT
HUNDRED FIFTEEN OF THIS ARTICLE, THEN THE SUPERINTENDENT, IN ADDITION TO
ANY OTHER PENALTY PRESCRIBED BY LAW, MAY REQUIRE THE PERSON  TO  PAY  TO
THE  PEOPLE  OF  THIS STATE AN AMOUNT NOT TO EXCEED ONE HUNDRED THOUSAND
DOLLARS.
  (C) IF, AFTER NOTICE AND HEARING, THE SUPERINTENDENT  DETERMINES  THAT
ANY  PERSON  KNOWINGLY VIOLATED SECTION SEVEN THOUSAND EIGHT HUNDRED TEN
OF THIS ARTICLE, THEN THE  SUPERINTENDENT,  IN  ADDITION  TO  ANY  OTHER
PENALTY  PRESCRIBED BY LAW, MAY REQUIRE THE PERSON TO PAY THE INSURED OR
OWNER AN AMOUNT NOT TO EXCEED TWENTY THOUSAND DOLLARS.
  (D)(1) IF, AFTER NOTICE AND  HEARING,  THE  SUPERINTENDENT  DETERMINES
THAT  ANY  PERSON  KNOWINGLY  AND  WILLFULLY  ACTED AS A LIFE SETTLEMENT
PROVIDER WITHOUT A LICENSE IN VIOLATION OF  SUBSECTION  (A)  OF  SECTION
SEVEN THOUSAND EIGHT HUNDRED THREE OF THIS ARTICLE, THEN THE SUPERINTEN-
DENT  MAY IMPOSE A CIVIL PENALTY PAYABLE TO THE PEOPLE OF THIS STATE NOT
TO EXCEED ONE HUNDRED  THOUSAND  DOLLARS  FOR  EACH  POLICY  SETTLED  IN
VIOLATION THEREOF.
  (2)  IF,  AFTER NOTICE AND HEARING, THE SUPERINTENDENT DETERMINES THAT
ANY PERSON KNOWINGLY AND WILLFULLY ACTED AS  A  LIFE  SETTLEMENT  BROKER
WITHOUT A LICENSE IN VIOLATION OF SUBSECTION (A) OF SECTION TWO THOUSAND
ONE  HUNDRED  THIRTY-SEVEN  OF THIS CHAPTER, THEN THE SUPERINTENDENT MAY
IMPOSE A CIVIL PENALTY PAYABLE TO THE PEOPLE OF THIS STATE NOT TO EXCEED
FIFTY THOUSAND DOLLARS FOR EACH POLICY SETTLED IN VIOLATION THEREOF.
  (3) IF, AFTER NOTICE AND HEARING, THE SUPERINTENDENT  DETERMINES  THAT
ANY  PERSON  KNOWINGLY AND WILLFULLY ACTED AS A LIFE SETTLEMENT INTERME-
DIARY WITHOUT A REGISTRATION IN VIOLATION OF SUBSECTION (A)  OF  SECTION
SEVEN  THOUSAND EIGHT HUNDRED FOUR OF THIS ARTICLE, THEN THE SUPERINTEN-
DENT MAY IMPOSE A CIVIL PENALTY PAYABLE TO THE PEOPLE OF THIS STATE  NOT
TO EXCEED FIFTY THOUSAND DOLLARS FOR EACH TRANSACTION.
  (E)  ANY  PERSON  WHO  HAS  BEEN  INJURED  BY REASON OF A VIOLATION OF
SUBSECTION (A), (B) OR (C) OF  THIS  SECTION  MAY  BRING  AN  ACTION  TO

S. 9                               30                               A. 9

RECOVER  DAMAGES  SUFFERED  BY  REASON  OF SUCH VIOLATION. IN ANY ACTION
BROUGHT UNDER THIS SECTION, THE COURT MAY  AWARD  REASONABLE  ATTORNEY'S
FEES TO A PREVAILING PLAINTIFF.
  (F)  NOTHING  PROVIDED  IN  THIS  ARTICLE  SHALL LIMIT OR RESTRICT ANY
COMMON LAW, CONTRACTUAL OR OTHER RIGHT OF ACTION.
  S 7817. AUTHORITY TO PROMULGATE REGULATIONS.   THE SUPERINTENDENT  MAY
PROMULGATE REGULATIONS IMPLEMENTING THIS ARTICLE.
  S 7818. NONCONFORMING CONTRACTS.  (A) EXCEPT AS OTHERWISE SPECIFICALLY
PROVIDED  IN  THIS CHAPTER, ANY LIFE SETTLEMENT CONTRACT SUBJECT TO THIS
CHAPTER THAT IS IN VIOLATION OF ANY OF THE PROVISIONS  OF  THIS  CHAPTER
SHALL BE VALID AND BINDING UPON THE LIFE SETTLEMENT PROVIDER, BUT IN ALL
RESPECTS  IN  WHICH  THE  CONTRACT'S  PROVISIONS ARE IN VIOLATION OF THE
REQUIREMENTS OR PROHIBITIONS OF THIS CHAPTER IT SHALL BE ENFORCEABLE  AS
IF IT CONFORMED WITH SUCH REQUIREMENTS OR PROHIBITIONS.
  (B)  IN ANY ACTION TO RECOVER UNDER THE PROVISIONS OF ANY LIFE SETTLE-
MENT CONTRACT THAT THE SUPERINTENDENT IS AUTHORIZED BY THIS  CHAPTER  TO
APPROVE, IF IN THE SUPERINTENDENT'S OPINION THE PROVISIONS OF THIS CHAP-
TER  ARE MORE FAVORABLE TO OWNERS, THE COURT SHALL ENFORCE SUCH CONTRACT
AS IF ITS PROVISIONS WERE THE SAME AS THOSE SPECIFIED  IN  THIS  CHAPTER
UNLESS  THE  COURT FINDS THAT THE ACTUAL PROVISIONS OF THE CONTRACT WERE
MORE FAVORABLE TO OWNERS AT THE DATE WHEN THE CONTRACT WAS ENTERED INTO.
  S 7819. APPLICABILITY AND CHOICE OF LAW. (A) THE  PROVISIONS  OF  THIS
ARTICLE SHALL APPLY TO ANY LIFE SETTLEMENT CONTRACT MADE, PROPOSED TO BE
MADE, OR SOLICITED WITH A RESIDENT OF THIS STATE OR ANY OWNER PHYSICALLY
IN THIS STATE.
  (B)(1)  IF  THERE  IS  MORE THAN ONE OWNER ON A SINGLE POLICY, AND THE
OWNERS ARE RESIDENTS OF DIFFERENT STATES, THEN THE  STATE  OF  RESIDENCY
SHALL  BE  THE STATE IN WHICH THE OWNER HAVING THE LARGEST PERCENTAGE OF
OWNERSHIP RESIDES OR, IF THE OWNERS HOLD EQUAL OWNERSHIP, THE  STATE  OF
RESIDENCE OF ONE OWNER, AGREED UPON IN WRITING BY ALL OF THE OWNERS.
  (2)  A  LIFE  SETTLEMENT  CONTRACT ENTERED INTO WITH AN OWNER WHO IS A
RESIDENT OF ANOTHER STATE MAY BE GOVERNED BY THE LAWS OF THE OTHER STATE
PROVIDED THAT THE OWNER ELECTS IN WRITING TO BE GOVERNED BY THE LAWS  OF
THE  OTHER STATE, AND IF THE OWNER IS ALSO A RESIDENT OF THIS STATE, THE
LIFE SETTLEMENT CONTRACT IS MADE, PROPOSED  TO  BE  MADE  AND  SOLICITED
OUTSIDE THIS STATE.
  (C) FOR THE PURPOSES OF THIS SECTION, WITH RESPECT TO ANY PERSON OTHER
THAN A NATURAL PERSON, THE STATE OF RESIDENCE SHALL BE:
  (1)  THE  STATE  IN  WHICH THE PERSON MAINTAINS ITS PRINCIPAL PLACE OF
BUSINESS; OR
  (2) WITH RESPECT TO A TRUST, A STATE IN WHICH THE GRANTOR RESIDES.
  S 7820. SEVERABILITY.  IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION  OR
PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
DICTION TO BE INVALID AND  AFTER  EXHAUSTION  OF  ALL  FURTHER  JUDICIAL
REVIEW,  THE JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALIDATE THE REMAIN-
DER THEREOF, BUT SHALL BE CONFINED  IN  ITS  OPERATION  TO  THE  CLAUSE,
SENTENCE,  PARAGRAPH,  SECTION OR PART OF THIS ARTICLE DIRECTLY INVOLVED
IN THE CONTROVERSY IN WHICH THE JUDGMENT SHALL HAVE BEEN RENDERED.
  S 12. Subsection (b) of section 403 of the insurance law,  as  amended
by chapter 805 of the laws of 1984, is amended to read as follows:
  (b) For the purpose of section one hundred nine of this chapter, it is
a  violation  of  this  chapter for any individual, firm, association or
corporation subject to the provisions of this chapter to commit a  frau-
dulent insurance act OR A FRAUDULENT LIFE SETTLEMENT ACT.
  S  13.  Section  403  of  the insurance law is amended by adding a new
subsection (f) to read as follows:

S. 9                               31                               A. 9

  (F) IN THIS ARTICLE, "FRAUDULENT LIFE SETTLEMENT ACT" MEANS A FRAUD AS
DEFINED IN SECTION 176.40 OF THE PENAL LAW.
  S  14.  Subsection (c) of section 403 of the insurance law, as amended
by chapter 262 of the laws of 1998, is amended to read as follows:
  (c) In addition to any criminal liability arising under the provisions
of this section, the superintendent shall be empowered to levy  a  civil
penalty  not exceeding five thousand dollars and the amount of the claim
for each violation upon any person, including those  persons  and  their
employees  licensed  pursuant to this chapter, who is found to have: (i)
committed a fraudulent insurance act, FRAUDULENT LIFE SETTLEMENT ACT  or
otherwise violates the provisions of this section; or (ii) knowingly and
with  intent  to defraud files, makes, or assists, solicits or conspires
with another to file or make an application  for  a  premium  reduction,
pursuant  to  subsection (a) of section two thousand three hundred thir-
ty-six of this chapter, containing any materially false  information  or
which,  for  the  purpose of misleading, conceals information concerning
any fact material thereto.
  S 15. Subsection (a) of section 404 of the insurance law is amended to
read as follows:
  (a) If the insurance frauds bureau has reason to believe that a person
has engaged in, or is engaging in, an act defined in section  155.05  of
the  penal  law, with respect to personal or commercial insurance trans-
actions [or], THE  BUSINESS  OF  LIFE  SETTLEMENTS,  section  176.05  OR
SECTION  176.40  of  such law, the superintendent may make such investi-
gation within or without this state as  [he]  THE  SUPERINTENDENT  deems
necessary  to  aid  in  the  enforcement of this chapter or to determine
whether any person  has  violated  or  is  about  to  violate  any  such
provision of the penal law.
  S  16.  Section 405 of the insurance law, subsection (a) as amended by
chapter 635 of the laws of 1996, subsection (d) as added by  chapter  57
of  the laws of 1993, the opening paragraph of subsection (d) as amended
by chapter 191 of the laws of 2008, paragraphs 9 and  10  of  subsection
(d)  as  amended  and paragraph 11 of subsection (d) as added by chapter
678 of the laws of 1997, is amended to read as follows:
  S 405. Reports. (a) Any person licensed OR REGISTERED pursuant to  the
provisions  of  this  chapter, and any person engaged in the business of
insurance OR LIFE SETTLEMENT in this state who is exempted from  compli-
ance  with  the  licensing  requirements  of this chapter, including the
state insurance fund of this state, who has reason to  believe  that  an
insurance  transaction  OR LIFE SETTLEMENT ACT may be fraudulent, or has
knowledge that a fraudulent insurance  transaction  OR  FRAUDULENT  LIFE
SETTLEMENT  ACT is about to take place, or has taken place shall, within
thirty days after determination by  such  person  that  the  transaction
appears  to be fraudulent, send to the insurance frauds bureau on a form
prescribed by the superintendent, the information requested by the  form
and such additional information relative to the factual circumstances of
the  transaction  and  the  parties  involved  as the superintendent may
require.  The insurance frauds bureau shall accept reports of  suspected
fraudulent  insurance  transactions  OR  FRAUDULENT LIFE SETTLEMENT ACTS
from any self insurer,  including  but  not  limited  to  self  insurers
providing health insurance coverage or those defined in section fifty of
the workers' compensation law, and shall treat such reports as any other
received pursuant to this section.
  (b) The insurance frauds bureau shall review each report and undertake
such further investigation as it deems necessary and proper to determine
the validity of the allegations.

S. 9                               32                               A. 9

  (c)  Whenever  the  superintendent is satisfied that a material fraud,
deceit, or intentional misrepresentation has been committed in an insur-
ance transaction OR IN THE BUSINESS OF  LIFE  SETTLEMENTS  or  purported
insurance  transaction  OR BUSINESS OF LIFE SETTLEMENTS, he OR SHE shall
report  any  such  violation of law to the appropriate licensing agency,
the district attorney of the county in which such acts  were  committed,
when  authorized by law, to the attorney general, and where appropriate,
to the person who  submitted  the  report  of  fraudulent  activity,  as
provided  by  the  provisions of this article. Within one hundred twenty
days of receipt of the superintendent's report, the attorney general  or
the  district  attorney  concerned shall inform the superintendent as to
the status of the reported violations.
  (d) No later than March fifteenth of each year, beginning in  nineteen
hundred  ninety-four,  the superintendent shall furnish to the governor,
the speaker of the assembly and the president pro tem of  the  senate  a
report containing:
  (1)  a  comprehensive  summary  and  assessment of the frauds bureau's
efforts in discovering, investigating and halting fraudulent  activities
and assisting in the prosecution of persons who are parties to insurance
fraud OR LIFE SETTLEMENT FRAUD;
  (2)  the number of reports received from any person or persons engaged
in the business of insurance OR LIFE SETTLEMENTS, the number of investi-
gations undertaken by the bureau pursuant to any reports  received,  the
number of investigations undertaken not as a result of reports received,
the  number of investigations that resulted in a referral to a licensing
agency, a local prosecutor or the attorney general, the number  of  such
referrals  pursued  by  a  licensing  agency,  a local prosecutor or the
attorney general, and the disposition of such cases;
  (3) a delineation of the number of reported and investigated cases  by
line of insurance AND THOSE THAT RELATE TO LIFE SETTLEMENTS;
  (4)  a  comparison  of  the frauds bureau's experience, with regard to
paragraphs two and  three  of  this  [subdivision]  SUBSECTION,  to  the
bureau's experience of years past;
  (5) the total number of employees assigned to the frauds bureau delin-
eated by title and location of bureau assigned;
  (6)  an  assessment of THE ACTIVITIES OF insurance [company] COMPANIES
AND LIFE SETTLEMENT PROVIDERS activities in regard to detecting,  inves-
tigating and reporting fraudulent activities, including a list of compa-
nies  which maintain special investigative units for the sole purpose of
detecting, investigating and reporting  fraudulent  activities  and  the
number of investigators assigned to such units per every thirty thousand
policies  OR  LIFE  SETTLEMENT  CONTRACTS  in force with such company OR
PROVIDER;
  (7) the amount of technical  and  monetary  assistance  requested  and
received  by  the frauds bureau from any insurance company or companies,
ANY LIFE SETTLEMENT PROVIDER OR PROVIDERS, or any organization funded by
insurance companies OR LIFE SETTLEMENT PROVIDERS;
  (8) the amount of money returned by the  frauds  bureau  to  insurance
companies  pursuant  to  any fraudulent claims that were recouped by the
bureau;
  (9) the number and amount of civil  penalties  levied  by  the  frauds
bureau  pursuant  to chapter four hundred eighty of the laws of nineteen
hundred ninety-two;
  (10) recommendations for further statutory or  administrative  changes
designed to meet the objectives of this article; and

S. 9                               33                               A. 9

  (11) an assessment of law enforcement and insurance company activities
to detect and curtail the incidence of operating a motor vehicle without
proper insurance coverage as required by this chapter.
  S 17. Section 406 of the insurance law, as amended by chapter 6 of the
laws of 2007, is amended to read as follows:
  S  406.  Immunity.    In  the absence of fraud or bad faith, no person
shall be subject to civil liability, and no civil cause of action of any
nature shall arise against such person [(i)] for  any:  (I)  information
relating  to  suspected  fraudulent insurance transactions OR FRAUDULENT
LIFE SETTLEMENT ACTS  furnished  to  law  enforcement  officials,  their
agents  and  employees;  [and (ii) for any] (II) information relating to
suspected fraudulent insurance transactions OR FRAUDULENT  LIFE  SETTLE-
MENT  ACTS  furnished to other persons subject to the provisions of this
chapter; and [(iii) for any] (III) such information furnished in reports
to the insurance frauds bureau, its agents or  employees  or  any  state
agency  investigating  fraud  or misconduct relating to workers' compen-
sation insurance, its agents or employees. Nor shall the  superintendent
or  any employee of the insurance frauds bureau, in the absence of fraud
or bad faith, be subject to civil liability and no civil cause of action
of any nature shall arise against them by virtue of the  publication  of
any  report or bulletin related to the official activities of the insur-
ance frauds bureau. Nothing herein is intended to abrogate or modify  in
any  way  any common law privilege of immunity heretofore enjoyed by any
person.
  S 18. The insurance law is amended by adding a new section 411 to read
as follows:
  S 411. LIFE SETTLEMENTS  FRAUD  PREVENTION  PLANS.    (A)  EVERY  LIFE
SETTLEMENT  PROVIDER  SHALL  FILE WITH THE SUPERINTENDENT A PLAN FOR THE
DETECTION, INVESTIGATION AND PREVENTION OF  FRAUDULENT  LIFE  SETTLEMENT
ACTS  IN  THIS STATE AND THOSE FRAUDULENT LIFE SETTLEMENT ACTS AFFECTING
LIFE SETTLEMENT CONTRACTS IN THIS STATE.
  (1) THE PLAN SHALL PROVIDE THE TIME AND  MANNER  IN  WHICH  SUCH  PLAN
SHALL  BE IMPLEMENTED, INCLUDING PROVISIONS FOR A SPECIAL INVESTIGATIONS
UNIT AND STAFFING LEVELS WITHIN SUCH UNIT. SUCH INVESTIGATORS  SHALL  BE
RESPONSIBLE FOR INVESTIGATING INFORMATION ON OR CASES OF SUSPECTED FRAU-
DULENT  ACTIVITY  AND  FOR EFFECTIVELY IMPLEMENTING FRAUD PREVENTION AND
REDUCTION ACTIVITIES PURSUANT TO THE PLAN FILED WITH THE SUPERINTENDENT.
A LIFE SETTLEMENT PROVIDER SHALL INCLUDE IN SUCH  PLAN  STAFFING  LEVELS
AND  ALLOCATIONS  OF  RESOURCES OF SUCH SPECIAL INVESTIGATIONS UNIT THAT
SHALL BE SUFFICIENT AND APPROPRIATE FOR THE PROPER IMPLEMENTATION OF THE
PLAN AND APPROVAL OF SUCH  PLAN  PURSUANT  TO  SUBSECTION  (C)  OF  THIS
SECTION.
  (2)  IN  LIEU  OF  A  SPECIAL  INVESTIGATIONS  UNIT, A LIFE SETTLEMENT
PROVIDER MAY CONTRACT WITH A PROVIDER OF SERVICES RELATED TO THE  INVES-
TIGATION  OF INFORMATION ON OR CASES OF SUSPECTED FRAUDULENT ACTIVITIES;
PROVIDED, HOWEVER,  THAT  A  LIFE  SETTLEMENT  PROVIDER  THAT  OPTS  FOR
CONTRACTING  WITH  A SEPARATE PROVIDER OF SERVICES, SHALL PROVIDE TO THE
SUPERINTENDENT A DETAILED PLAN THEREFOR, PURSUANT  TO  REQUIREMENTS  SET
FORTH IN REGULATION BY THE SUPERINTENDENT.
  (3) A PERSON EMPLOYED BY A SPECIAL INVESTIGATIONS UNIT OR AN INDEPEND-
ENT  PROVIDER  OF  INVESTIGATIVE  SERVICES  UNDER  CONTRACT  WITH A LIFE
SETTLEMENT PROVIDER SHALL BE QUALIFIED BY EDUCATION OR EXPERIENCE TO ACT
IN SUCH CAPACITY, SUBJECT TO REQUIREMENTS ESTABLISHED BY THE SUPERINTEN-
DENT IN A REGULATION.
  (B) THE PLAN SHALL PROVIDE FOR THE FOLLOWING:

S. 9                               34                               A. 9

  (1) INTERFACE  OF  SPECIAL  INVESTIGATIONS  UNIT  PERSONNEL  WITH  LAW
ENFORCEMENT  AND  PROSECUTORIAL AGENCIES, INCLUDING THE INSURANCE FRAUDS
BUREAU IN THE DEPARTMENT;
  (2)  REPORTING OF FRAUD DATA TO A CENTRAL ORGANIZATION APPROVED BY THE
SUPERINTENDENT;
  (3) IN-SERVICE EDUCATION AND TRAINING FOR PERSONNEL IN IDENTIFYING AND
EVALUATING INSTANCES OF SUSPECTED FRAUDULENT ACTIVITY;
  (4) COORDINATION WITH OTHER UNITS OF A LIFE  SETTLEMENT  PROVIDER  FOR
THE INVESTIGATION AND INITIATION OF CIVIL ACTIONS BASED UPON INFORMATION
RECEIVED BY OR THROUGH THE SPECIAL INVESTIGATION UNIT;
  (5)  PUBLIC  AWARENESS  OF THE COST AND FREQUENCY OF FRAUDULENT ACTIV-
ITIES, AND THE METHODS OF PREVENTING FRAUD;
  (6) DEVELOPMENT AND USE OF A FRAUD DETECTION AND PROCEDURES MANUAL  TO
ASSIST IN THE DETECTION AND ELIMINATION OF FRAUDULENT ACTIVITY; AND
  (7)  THE TIME AND MANNER IN WHICH SUCH PLAN SHALL BE IMPLEMENTED AND A
DEMONSTRATION THAT THE FRAUD PREVENTION AND REDUCTION MEASURES  OUTLINED
IN THE PLAN WILL BE FULLY IMPLEMENTED.
  (C)(1)  A  FRAUD DETECTION AND PREVENTION PLAN FILED BY A LIFE SETTLE-
MENT PROVIDER WITH THE SUPERINTENDENT PURSUANT TO THIS SECTION SHALL  BE
DEEMED APPROVED BY THE SUPERINTENDENT IF NOT RETURNED BY THE SUPERINTEN-
DENT  FOR REVISION WITHIN ONE HUNDRED TWENTY DAYS OF THE DATE OF FILING.
IF THE SUPERINTENDENT RETURNS A PLAN FOR  REVISION,  THE  SUPERINTENDENT
SHALL  STATE  THE POINTS OF OBJECTION WITH SUCH PLAN, AND ANY AMENDMENTS
AS THE SUPERINTENDENT MAY REQUIRE CONSISTENT WITH THE PROVISIONS OF THIS
SECTION, INCLUDING STAFFING LEVELS, RESOURCE ALLOCATION, OR OTHER POLICY
OR OPERATIONAL CONSIDERATIONS. AN AMENDED PLAN  REFLECTING  THE  CHANGES
SHALL  BE  FILED WITH THE SUPERINTENDENT WITHIN FORTY-FIVE DAYS FROM THE
DATE OF RETURN.
  (2) IF THE SUPERINTENDENT HAS RETURNED A PLAN FOR REVISION  MORE  THAN
ONE TIME, THEN THE LIFE SETTLEMENT PROVIDER SHALL BE ENTITLED TO A HEAR-
ING  PURSUANT  TO  THE  PROVISIONS  OF ARTICLE THREE OF THIS CHAPTER AND
REGULATIONS PROMULGATED THEREUNDER.
  (3) IF A LIFE SETTLEMENT PROVIDER FAILS TO SUBMIT A FINAL PLAN  WITHIN
THIRTY  DAYS AFTER A DETERMINATION OF THE SUPERINTENDENT AFTER THE HEAR-
ING HELD PURSUANT TO PARAGRAPH TWO  OF  THIS  SUBSECTION,  OR  OTHERWISE
FAILS  TO  SUBMIT A PLAN, OR FAILS TO IMPLEMENT THE PROVISIONS OF A PLAN
IN A TIME AND MANNER PROVIDED FOR IN SUCH PLAN, OR OTHERWISE REFUSES  TO
COMPLY  WITH  THE  PROVISIONS  OF  THIS  SECTION, THE SUPERINTENDENT MAY
IMPOSE:
  (A) A FINE OF NOT MORE THAN TWO THOUSAND  DOLLARS  PER  DAY  FOR  SUCH
FAILURE BY A LIFE SETTLEMENT PROVIDER UNTIL THE SUPERINTENDENT DEEMS THE
LIFE SETTLEMENT PROVIDER TO BE IN COMPLIANCE;
  (B) UPON THE LIFE SETTLEMENT PROVIDER A FRAUD DETECTION AND PREVENTION
PLAN  DEEMED  TO  BE  APPROPRIATE  BY THE SUPERINTENDENT, WHICH SHALL BE
IMPLEMENTED BY THE LIFE SETTLEMENT PROVIDER; OR
  (C) BOTH A FINE AND A FRAUD DETECTION AND PREVENTION PLAN PURSUANT  TO
SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH.
  (D)  ANY  PLAN,  THE  INFORMATION CONTAINED THEREIN, OR CORRESPONDENCE
RELATED THERETO, OR ANY OTHER INFORMATION  FURNISHED  PURSUANT  TO  THIS
SECTION SHALL BE DEEMED TO BE A CONFIDENTIAL COMMUNICATION AND SHALL NOT
BE  OPEN  FOR REVIEW OR BE SUBJECT TO A SUBPOENA EXCEPT BY A COURT ORDER
OR BY REQUEST FROM ANY LAW ENFORCEMENT AGENCY OR AUTHORITY.
  (E) EVERY LIFE SETTLEMENT PROVIDER REQUIRED TO FILE A FRAUD PREVENTION
PLAN SHALL REPORT TO THE SUPERINTENDENT ON AN  ANNUAL  BASIS,  NO  LATER
THAN  MARCH FIFTEENTH, DESCRIBING THE PROVIDER'S EXPERIENCE, PERFORMANCE
AND COST EFFECTIVENESS IN IMPLEMENTING THE PLAN, UTILIZING SUCH FORMS AS

S. 9                               35                               A. 9

THE SUPERINTENDENT MAY PRESCRIBE.  UPON CONSIDERATION OF  SUCH  REPORTS,
THE  SUPERINTENDENT  MAY  REQUIRE  AMENDMENTS  TO  THE  PROVIDER'S FRAUD
DETECTION AND PREVENTION PLAN AS DEEMED NECESSARY.
  S  19.  The  penal law is amended by adding seven new sections 176.40,
176.45, 176.50, 176.55, 176.60, 176.65 and 176.70 to read as follows:
S 176.40 FRAUDULENT LIFE SETTLEMENT ACT; DEFINED.
  A FRAUDULENT LIFE SETTLEMENT ACT IS COMMITTED BY ANY PERSON WHO, KNOW-
INGLY AND WITH INTENT TO DEFRAUD, PRESENTS, CAUSES TO BE  PRESENTED,  OR
PREPARES WITH KNOWLEDGE OR BELIEF THAT IT WILL BE PRESENTED TO, OR BY, A
LIFE SETTLEMENT PROVIDER, LIFE SETTLEMENT BROKER, LIFE SETTLEMENT INTER-
MEDIARY,  OR ANY AGENT THEREOF, OR TO ANY OWNER ANY WRITTEN STATEMENT OR
OTHER PHYSICAL EVIDENCE AS PART OF, OR IN SUPPORT OF, AN APPLICATION FOR
A LIFE SETTLEMENT CONTRACT, A CLAIM FOR PAYMENT OR OTHER BENEFIT UNDER A
LIFE SETTLEMENT CONTRACT, WHICH THE PERSON KNOWS TO:
  (1) CONTAIN MATERIALLY FALSE INFORMATION CONCERNING ANY MATERIAL  FACT
THERETO; OR
  (2) CONCEAL, FOR THE PURPOSE OF MISLEADING, INFORMATION CONCERNING ANY
FACT MATERIAL THERETO.
S 176.45 LIFE SETTLEMENT FRAUD IN THE FIFTH DEGREE.
  A  PERSON  IS GUILTY OF LIFE SETTLEMENT FRAUD IN THE FIFTH DEGREE WHEN
HE OR SHE COMMITS A FRAUDULENT LIFE SETTLEMENT ACT.
  LIFE SETTLEMENT FRAUD IN THE FIFTH DEGREE IS A CLASS A MISDEMEANOR.
S 176.50 LIFE SETTLEMENT FRAUD IN THE FOURTH DEGREE.
  A PERSON IS GUILTY OF LIFE SETTLEMENT FRAUD IN THE FOURTH DEGREE  WHEN
HE OR SHE COMMITS A FRAUDULENT LIFE SETTLEMENT ACT AND THEREBY WRONGFUL-
LY  TAKES,  OBTAINS OR WITHHOLDS, OR ATTEMPTS TO WRONGFULLY TAKE, OBTAIN
OR WITHHOLD PROPERTY WITH A VALUE  IN  EXCESS  OF  TWENTY-FIVE  THOUSAND
DOLLARS.
  LIFE SETTLEMENT FRAUD IN THE FOURTH DEGREE IS A CLASS E FELONY.
S 176.55 LIFE SETTLEMENT FRAUD IN THE THIRD DEGREE.
  A  PERSON  IS GUILTY OF LIFE SETTLEMENT FRAUD IN THE THIRD DEGREE WHEN
HE OR SHE COMMITS A FRAUDULENT LIFE SETTLEMENT ACT AND THEREBY WRONGFUL-
LY TAKES, OBTAINS OR WITHHOLDS, OR ATTEMPTS TO WRONGFULLY  TAKE,  OBTAIN
OR WITHHOLD PROPERTY WITH A VALUE IN EXCESS OF FIFTY THOUSAND DOLLARS.
  LIFE SETTLEMENT FRAUD IN THE THIRD DEGREE IS A CLASS D FELONY.
S 176.60 LIFE SETTLEMENT FRAUD IN THE SECOND DEGREE.
  A  PERSON IS GUILTY OF LIFE SETTLEMENT FRAUD IN THE SECOND DEGREE WHEN
HE OR SHE COMMITS A FRAUDULENT LIFE SETTLEMENT ACT AND THEREBY WRONGFUL-
LY TAKES, OBTAINS OR WITHHOLDS, OR ATTEMPTS TO WRONGFULLY  TAKE,  OBTAIN
OR  WITHHOLD  PROPERTY  WITH  A  VALUE IN EXCESS OF ONE HUNDRED THOUSAND
DOLLARS.
  LIFE SETTLEMENT FRAUD IN THE SECOND DEGREE IS A CLASS C FELONY.
S 176.65 LIFE SETTLEMENT FRAUD IN THE FIRST DEGREE.
  A PERSON IS GUILTY OF LIFE SETTLEMENT FRAUD IN THE FIRST  DEGREE  WHEN
HE OR SHE COMMITS A FRAUDULENT LIFE SETTLEMENT ACT AND THEREBY WRONGFUL-
LY  TAKES,  OBTAINS OR WITHHOLDS, OR ATTEMPTS TO WRONGFULLY TAKE, OBTAIN
OR WITHHOLD PROPERTY WITH A VALUE IN EXCESS OF ONE MILLION DOLLARS.
  LIFE SETTLEMENT FRAUD IN THE FIRST DEGREE IS A CLASS B FELONY.
S 176.70 AGGRAVATED LIFE SETTLEMENT FRAUD.
  A PERSON IS GUILTY OF AGGRAVATED LIFE SETTLEMENT FRAUD WHEN HE OR  SHE
COMMITS  A  FRAUDULENT  LIFE  SETTLEMENT  ACT,  AND  HAS BEEN PREVIOUSLY
CONVICTED WITHIN THE PRECEDING FIVE YEARS OF ANY OFFENSE,  AN  ESSENTIAL
ELEMENT OF WHICH IS THE COMMISSION OF A FRAUDULENT LIFE SETTLEMENT ACT.
  AGGRAVATED LIFE SETTLEMENT FRAUD IS A CLASS D FELONY.
  S  20.  Section 570 of the banking law, as added by chapter 488 of the
laws of 1960, is amended to read as follows:

S. 9                               36                               A. 9

  S 570. Restrictions on premium finance  agreements.    1.  No  premium
finance agreement shall contain any provision by which:
  (a)  In  the  absence  of  default of the insured, the premium finance
agency holding the agreement may,  arbitrarily  and  without  reasonable
cause,  accelerate  the  maturity of any part or all of the amount owing
thereunder;
  (b) A power of attorney is given to confess judgment in this state; or
  (c) The insured relieves the insurance agent or broker or the  premium
finance agency holding the agreement from liability for any legal rights
or  remedies  [which]  THAT the insured may otherwise have against [him]
THE INSURANCE AGENT OR BROKER.
  2. NO PERSON MAY USE A PREMIUM FINANCE AGREEMENT IN A MANNER  DESIGNED
TO EVADE ANY REQUIREMENT OF ARTICLE SEVENTY-EIGHT OF THE INSURANCE LAW.
  3.  EVERY  PERSON OR PREMIUM FINANCE AGENCY THAT ENTERS INTO A PREMIUM
FINANCE AGREEMENT,  AS  SUCH  TERMS  ARE  DEFINED  PURSUANT  TO  ARTICLE
TWELVE-B OF THIS CHAPTER, SHALL FILE IN THE OFFICE OF THE SUPERINTENDENT
OF  INSURANCE,  ON  OR BEFORE THE FIRST DAY OF MARCH, A STATEMENT, TO BE
KNOWN AS ITS ANNUAL STATEMENT, VERIFIED BY THE OATH OF AT LEAST  TWO  OF
ITS  PRINCIPAL OFFICERS, SHOWING ITS CONDITION AT THE END OF THE PRECED-
ING CALENDAR YEAR. THE STATEMENT SHALL BE IN SUCH FORM AND SHALL CONTAIN
SUCH OTHER MATTERS AS THE SUPERINTENDENT OF INSURANCE  SHALL  PRESCRIBE.
IN ADDITION TO ANY OTHER REQUIREMENTS, THE ANNUAL STATEMENT SHALL SPECI-
FY  THE TOTAL NUMBER, AGGREGATE FACE AMOUNT AND LIFE SETTLEMENT PROCEEDS
OF, POLICIES SETTLED DURING THE  IMMEDIATELY  PRECEDING  CALENDAR  YEAR,
TOGETHER WITH A BREAKDOWN OF THE INFORMATION BY POLICY ISSUE YEAR.
  S  21.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a law, provided that:
  (1) a person lawfully operating as a life  settlement  provider,  life
settlement  broker  or  life  settlement intermediary in this state with
respect to life settlement transactions not heretofore  regulated  under
the insurance law may, with respect to such transactions, continue to do
so after such one hundred eightieth day, pending approval or disapproval
of  the  person's application for a license or registration, as applica-
ble, if the appropriate application is filed with the superintendent  of
insurance  not later than 30 days after the superintendent publishes, on
the insurance department's website, the application form for such licen-
sure or registration, and provided further that such person certifies in
the application that  such  person  shall  comply  with  all  applicable
provisions of the insurance law and regulations thereunder;
  (2)  a  person licensed as a viatical settlement company or a viatical
settlement broker immediately prior to the effective date  of  this  act
may  act as a life settlement provider or a life settlement broker after
such one hundred eightieth day, for the duration  of  the  term  of  the
provider  or the broker's license, without having to file a new applica-
tion, including with respect to transactions  not  heretofore  regulated
under the insurance law, provided, however, such company or broker shall
thereafter  be subject to a renewal of such license as a life settlement
provider or life settlement broker and  shall  be  required,  with  such
renewal,  to  provide  evidence  to the superintendent of insurance that
such licensee is in compliance with the licensing requirements set forth
in sections 2102 and 7803 of the  insurance  law,  for  life  settlement
brokers and life settlement providers, respectively;
  (3)  with respect to life settlement transactions not heretofore regu-
lated under the insurance law, a person licensed as a  viatical  settle-
ment  company  immediately  prior to the effective date of this act or a
person lawfully operating as a life settlement provider in  this  state,

S. 9                               37                               A. 9

as  described  in  subdivision  one  of this section, that has filed, no
later than 30 days prior to the effective date  of  this  act,  specimen
copies  of the contract forms, application forms and other forms that it
intends  to  use,  and certified to the superintendent of insurance that
such forms are in compliance with the insurance law and any  regulations
promulgated  thereunder,  may  use the unapproved forms until the super-
intendent of insurance has either approved or disapproved the forms;
  (4) with respect to viatical settlement transactions heretofore  regu-
lated  under  the insurance law, a person licensed as a viatical settle-
ment company immediately prior to the effective date  of  this  act,  as
described  in  subdivision  two  of  this section, shall not continue to
issue contract forms, application forms and other forms approved by  the
superintendent  of  insurance  prior  to the effective date of this act,
after the effective date of this act. Any such person that has filed, no
later than thirty days prior to the effective date of this act, specimen
copies of the contract forms, application forms and other forms that  it
intends  to  use, and that has certified to the superintendent of insur-
ance that such forms are in compliance with the insurance  law  and  any
regulations  promulgated  thereunder,  as  of the effective date of this
act, may use such unapproved forms until the superintendent of insurance
has either approved or disapproved the forms;
  (5) sections 7810, 7811 and 7815 of the insurance  law,  as  added  by
section eleven of this act, shall take effect immediately; and
  (6) effective immediately, the superintendent of insurance may promul-
gate  any  rules and regulations necessary for the implementation of the
provisions of this act on its effective date.