W. Va. Code R. § 114-80-3

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 114-80-3 - Viatical Settlement Provider Licensing and Renewal Requirements

3.1. A person shall not operate as a viatical settlement provider without first obtaining a license from the Commissioner pursuant to W. Va. Code § 33-13C-3 and this rule.

3.2. A person must submit the following to obtain a license to act as a viatical settlement provider in this state:

3.2.a. A fully completed Viatical Settlement Provider Application (VSP-2);

3.2.b. A $600.00 non-refundable application fee;

3.2.c. A certificate of good standing from state of domicile;

3.2.d. A West Virginia business license;

3.2.e. A copy of the last certified public accountant audit and if any, the latest financial and market conduct examination reports from the state of domicile;

3.2.f. An unaudited financial statement for the most recent quarter;

3.2.g. Evidence of a minimum equity of not less than $250,000 in cash or cash equivalents reflected in the applicant's audited financial statements or through a surety bond executed and issued by an insurer authorized to issue bond in this state in the amount of $250,000;

3.2.h. A detailed plan of operations;

3.2.i. An anti-fraud plan that meets the requirements of W. Va. Code § 33-13C-14;

3.2.j. National Association of Insurance Commissioners' UCAA biographical affidavit for each individual, member, officer or principal owner (ownership of ten percent or more of the company) of applicant and each person to be authorized to act under the license;

3.2.k. If the applicant is a member of a holding company system, submit an organizational chart which depicts the affiliate relationships among the members. "Affiliate" means a person that directly or indirectly through one or more intermediaries is controlled by or is under common control with the member specified. "Control" shall be presumed to exist if any person directly or indirectly owns, controls, holds with the power to vote or holds proxies representing collectively ten percent or more of the voting securities of any other person;

3.2.l. Samples of all forms the provider uses or plans to use to enter into viatical settlement contracts with viators and viator application forms;

3.2.m. Samples of all advertising and other solicitation materials the provider plans to use in the state; and

3.2.n. Samples of all informational brochures.

3.3. An incomplete application, as determined by the commission, that remains incomplete four months from the date filed will be considered withdrawn and a new application and application fee will be required.

3.4. A viatical settlement provider license must be renewed annually by payment of $300 on or before the thirty-first day of May next following the date of issuance. If a viatical settlement provider fails to pay the renewal fee, the nonpayment shall result in a lapse of the license. A viatical settlement provider that allows its license to lapse may, within twelve months from the due date of the renewal fee, reinstate the same license, however, a penalty in the amount of $300 shall be required for any renewal fee received after the due date.

3.5. If a viatical settlement provider has, at the time of renewal, viatical settlement contracts where the insured has not died, it shall do one of the following:

3.5.a. Renew or maintain its current license status until the earlier of the following events:

3.5.a.1. The date the viatical settlement provider properly assigns, sells or otherwise transfers the viatical settlement contract where the insured has not died; or

3.5.a.2. The date that the last insured covered by viatical settlement contract has died.

3.5.b. Appoint, in writing, either the viatical settlement provider that entered into the viatical settlement contract, the broker who received commissions from the viatical settlement contract, if applicable, or any other viatical settlement provider or broker licensed in this state to make all inquiries to the viator, or the viator's designee, regarding health status of the insured or any other matters.

3.6. A license issued to a legal entity pursuant to W.Va. Code § 33-13C-3 and subsection 3.2 of this rule authorizes all partners, officers, members and designated employees to act as viatical settlement providers under the license and all those persons shall be named in the application and any supplements to the application.

W. Va. Code R. § 114-80-3