40-5003. Same; license applications, renewal, fee, information required, powers of commissioner.
40-5003
40-5003. Same; license applications, renewal, fee,information required, powers of commissioner.(a) No person shall operate as a viatical settlementprovider or viatical settlement broker without first obtaining a license fromthe commissioner or the insurance regulatory official of the state of residenceof the viator. If there is more than one viator on a single policy and theviators are residents of different states, the viatical settlement shall begoverned by the law of the state in which the viator having the largestpercentage ownership resides or, if the viators hold equal ownership, the stateof residence of one viator agreed upon in writing by all viators.
(b) Application for a viatical settlement provider license shall be made tothe commissioner by the applicant on a form prescribed by the commissioner, andthese applications shall be accompanied by a nonrefundable fee of $1,000.
(c) Licenses for viatical settlement providers may be renewed from year toyear on the anniversary date upon payment of the annual renewal fee of $500.Failure to pay the fees by the renewal date results in expiration of thelicense.
(d) Application for a viatical settlement broker license shall be made to thecommissioner by the applicant on a form prescribed by the commissioner. Eachapplication shall be accompanied by a nonrefundable application fee of $100.
(e) Licenses for a viatical settlement broker license may be renewed fromyear to year on the anniversary date upon payment of the annual renewal fee of$50. Failure to pay the fees by the renewal date results in expiration of suchlicense.
(f) The applicant shall provide information on forms required by thecommissioner. The commissioner shall have authority, at any time, to requirethe applicant to fully disclose the identity of all stockholders, partners,officers, members and employees, and the commissioner, in the exercise of thecommissioner's discretion, may refuse to issue a license in the name of a legalentity if not satisfied that any officer, employee, stockholder, partner ormember thereof who may materially influence the applicant's conduct meets thestandards of this act.
(g) A license issued to a legal entity authorizes all partners, officers,members and designated employees to act as viatical settlement providers orviatical settlement brokers, as applicable, under the license, and all thosepersons shall be named in the application and any supplements to theapplication.
(h) Upon the filing of an application and the payment of the license fee, thecommissioner shall make an investigation of each applicant and issue a licenseif the commissioner finds that the applicant:
(1) If a viatical settlement provider, has provided a detailed plan ofoperation;
(2) is competent and trustworthy and intends to act in good faith in thecapacity involved by the license applied for;
(3) has a good business reputation and has had experience, training oreducation so as to be qualified in the business for which the license isapplied for;
(4) if a legal entity, provides a certificate of good standing from the stateof its domicile; and
(5) if a viatical settlement provider or viatical settlement broker, hasprovided an anti-fraud plan that meets the requirements of paragraph (g) ofK.S.A. 2009 Supp.40-5012, and amendments thereto.
(i) The commissioner shall not issue a license to a nonresident applicant,unless a written designation of an agent for service of process is filed andmaintained with the commissioner or the applicant has filed with thecommissioner, the applicant's written irrevocable consent that any actionagainst the applicant may be commenced against the applicant by service ofprocess on the commissioner.
(j) A viatical settlement provider or viatical settlement broker shallprovide to the commissioner new or revised information about officers, 10% ormore stockholders, partners, directors, members or designated employees within30 days of the change.
History: L. 2002, ch. 158, § 3; May 23.