§ 7805. License and registration revocation. (a) The superintendent
may suspend, revoke or refuse to renew the license of any life
settlement 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 officer, partner, member, or key management
personnel thereof, has:

(1) violated any insurance laws or any regulation promulgated
thereunder, 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;

(2) provided materially incorrect, materially misleading, materially
incomplete or materially untrue information in the license or
registration 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
elsewhere;

(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
intermediary 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
settlement 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
penalty 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 registrant, unless such order is stayed by a court of
competent jurisdiction, the superintendent may revoke the license of
such licensee or the registration of such registrant, or may suspend the
same for such period as the superintendent determines.