Section 230-RICR-20-60-10.5 - Broker Licensing and ConductA. No person may engage in or hold himself or herself out to be engaging in life settlement brokering in Rhode Island unless that person: 1. Holds a current valid license as a Rhode Island Life Settlement Broker, or2. Obtains a license within the thirty (30) days of the activities requiring licensure as set forth in R.I. Gen. Laws § 27-72-3(d), or3. Is licensed as an attorney, certified public accountant or financial planner accredited by a nationally recognized accreditation agency and who is retained to represent the owner and whose compensation is not paid directly or indirectly by the provider or any other person except the owner. Such persons may negotiate life settlement contracts on behalf of owners without having to obtain a license as a broker.B. Every applicant for a broker license must submit an application to the Department. In order to be licensed, applicants must fulfill the requirements set forth in said application and pay the applicable fee to the Department. 1. Applicants shall submit a complete application providing all information requested by the application and any follow up information requested by the Department. The application is not considered complete until the Department receives all of the information it has requested.2. Applicants shall pay the biennial license fee paid by insurance producers pursuant to "INSURANCE REGULATION 103 LICENSING AND RENEWAL FEES".3. An individual who holds a valid Rhode Island resident or nonresident insurance producer license with a life line of authority may, unless otherwise unqualified, obtain authority to act as a life settlement broker by adding a "life settlement" line of authority to his or her insurance producer license. The addition of the line of authority shall be made on an application form as designated by the Department. A fee of fifty dollars ($50) per applicant shall be assessed to add the line of authority. Renewal of the insurance producer's license will constitute renewal of the life settlement broker license.4. Business entities operating as life settlement brokers must obtain a separate business entity license as a life settlement broker whether or not the business entity holds a valid insurance producer license.5. Business entities must complete the application provided by the Department and pay the biennial license fee paid by insurance producers pursuant to "INSURANCE REGULATION 103 LICENSING AND RENEWAL FEES".C. Every applicant for a renewal license must submit a complete renewal application to the Department. In order to be licensed, applicants must fulfill the requirements set forth in said application and pay the applicable fee to the Department. 1. A broker shall pay the renewal fee paid by insurance producers pursuant to "INSURANCE REGULATION 103 LICENSING AND RENEWAL FEES" biennially for renewal of the license. Failure to renew the license shall result in an automatic revocation of the license.2. An individual insurance producer who adds licensure as a life settlement broker shall renew his or her producer license as scheduled with no change in renewal due to the addition of the life settlement line of authority.3. Individual license renewals shall be made on the birth month of the applicant beginning in the second year of licensure. For the first license renewal the license may be effective for less than a full twenty-four months. The full application and renewal fee must still be paid as Rhode Island does not prorate fees.4. Brokers must complete fifteen (15) hours of life settlement training on a biennial basis unless the broker is also licensed as an insurance producer. Life settlement brokers holding an insurance producer license must only complete the continuing education requirements for the producers' license.D. A broker that is unable to comply with license renewal procedures due to military service or some other extenuating circumstance (e.g., a long-term medical disability) may request a waiver of those procedures. The life settlement broker may also request a waiver of any requirement, fine, or other sanction imposed for failure to comply with renewal procedures.E. The Department may contract with non-governmental entities, including the NAIC or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees and data, related to licensing that the Department may deem appropriate.F. A broker may not engage in any activity requiring licensure with any person not licensed as a life settlement broker or provider whose actions would require licensure as a life settlement broker or provider.G. Brokers are considered insurance producers and, therefore, even if they hold only the life settlement line of authority they must comply with all provisions of R.I. Gen. Laws Chapter 27-2.4including the requirement contained in R.I. Gen. Laws § 27-2.4-23 that resident producers maintain errors and omissions insurance.H. Brokers must comply with R.I. Gen. Laws § 27-72-6(c) and Part 7 of this Subchapter concerning non-public personal information.I. Brokers must comply with the requirements of R.I. Gen. Laws § 27-72-9 regarding disclosure to owners. If the broker does not complete the disclosure personally, the broker must assure that the provider provides complete disclosure. The broker will be responsible for lack of compliance if the provider has not satisfied the requirements of disclosure.J. A life settlement broker is required to disclose to the owner the following no later than the date the life settlement contract is signed: 1. The name, business address, telephone number and other contact information of the Broker.2. A full complete and accurate description of all offers, counter-offers, acceptances and rejections relating to the proposed life settlement contract.3. A written disclosure of any affiliation or contractual arrangements between the broker and any person making an offer in connection with the proposed life settlement contract.4. The name and amount of compensation received by each broker involved in the transaction.230 R.I. Code R. 230-RICR-20-60-10.5