(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
fraudulent 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
investigation 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
independent 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
superintendent in a regulation.
(b) The plan shall provide for the following:
(1) interface of special investigations unit personnel with law
enforcement and prosecutorial agencies, including the financial frauds
and consumer protection unit 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
activities, 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
settlement provider with the superintendent pursuant to this section
shall be deemed approved by the superintendent if not returned by the
superintendent 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
hearing 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
hearing 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
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.