Texas Statutes
Chapter 1111A - Life Settlement Contracts
Section 1111A.004. License Suspension, Revocation, or Refusal to Renew

Sec. 1111A.004. LICENSE SUSPENSION, REVOCATION, OR REFUSAL TO RENEW. (a) The commissioner may suspend, revoke, or refuse to renew the license of a license holder if the commissioner finds that:
(1) there was a material misrepresentation in the application for the license;
(2) the license holder or an officer, partner, member, or director of the license holder has been guilty of fraudulent or dishonest practices, is subject to a final administrative action, or is otherwise shown to be untrustworthy or incompetent to act as a license holder;
(3) the license holder is a provider and demonstrates a pattern of unreasonably withholding payments to policy owners;
(4) the license holder no longer meets the requirements for initial licensure;
(5) the license holder or any officer, partner, member, or director of the license holder has been convicted of a felony, or of any misdemeanor with respect to which criminal fraud is an element, or has pleaded guilty or nolo contendere with respect to a felony or a misdemeanor with respect to which criminal fraud or moral turpitude is an element, regardless of whether a judgment of conviction has been entered by the court;
(6) the license holder is a provider and has entered into a life settlement contract using a form that has not been approved under this chapter;
(7) the license holder is a provider and has failed to honor contractual obligations in a life settlement contract;
(8) the license holder is a provider and has assigned, transferred, or pledged a settled policy to a person other than a provider licensed in this state, a purchaser, an accredited investor or qualified institutional buyer as defined respectively in 17 C.F.R. Section 230.144A, as amended, a financing entity, a special purpose entity, or a related provider trust; or
(9) the license holder or any officer, partner, member, or key management personnel of the license holder has violated this chapter.
(b) The commissioner may deny a license application or suspend, revoke, or refuse to renew the license of a license holder in accordance with Chapter 2001, Government Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1156 (H.B. 2277), Sec. 3, eff. September 1, 2011.

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