New York Laws
Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries
2137 - Life Settlement Brokers; Licensing.

(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
individually as life settlement brokers thereunder. Every sub-licensee,
acting as a life settlement broker pursuant to such a license shall be
authorized 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
application 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 materially 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 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
application 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
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) 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
refundable. 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;
(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
settlement broker but did not pass such an examination; provided the
applicant applies within two years following the date of termination of
the applicant'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
designation 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
individual'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
company, 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

following his or her discharge therefrom, in responsible duties relating
to the use of life insurance and annuity contracts in the design and
administration 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
issuance 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
birthday 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:
(A) revoked or suspended by the superintendent pursuant to this
article; 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
superintendent 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
applicant 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
licensee 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
individual 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 (A)
shall have been discharged therefrom, under conditions other than
dishonorable, or (B) has a qualifying condition, as defined in section
one of the veterans' services law, and has received a discharge other
than bad conduct or dishonorable from such service, or (C) is a
discharged LGBT veteran, as defined in section one of the veterans'
services law, and has received a discharge other than bad conduct or
dishonorable from such service, in a current licensing period, for the
duration of such period.
(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
application at any time.
(j) The superintendent may issue a replacement for a currently
in-force license that has been lost or destroyed. Before such
replacement 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.