W. Va. Code R. § 114-80-4

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

Section 114-80-4 - Viatical Settlement Broker Licensing and Renewal Requirements

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

4.2. A person or entity must submit the following to obtain a license to act as a viatical settlement broker in this state:

4.2.a. A fully completed Viatical Settlement Broker Application (VSB-2);

4.2.b. If a legal entity, a certificate of good standing from state of domicile;

4.2.c. 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: Provided, That the Commissioner may permit an applicant for a broker's license to demonstrate evidence of financial responsibility through a policy of insurance covering legal liability resulting from erroneous acts or failure to act in their capacity as a viatical settlement broker and inuring to the benefit of any aggrieved party as the result of any single occurrence in the sum of not less than $100,000 and $300,000 in the aggregate for all occurrences within one year;

4.2.d. An anti-fraud plan that meets the requirements of W. Va. Code § 33-13C-14(g);

4.2.e. If a legal entity, 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;

4.2.f. Samples of informational brochures to be provided to prospective viators describing the viatical settlement process.

4.3.

4.3.a. An individual applicant for a viatical settlement broker's license shall pass the Viatical Settlements Brokers Examination. An examination fee of $25 shall be paid by each applicant and the examination shall be administered by a designated independent testing service selected by the Commissioner. The examination fees will be collected by the independent testing service and remitted to the Commissioner. Any additional fees charged by the independent testing service shall be paid by the applicant.

4.3.b. An applicant who holds or has held a life insurance producer's license for at least five consecutive years and is in good standing with the Insurance Commission shall be exempt from licensing and continuing education requirements set forth in subsection 4.10 and W.Va. Code § 33-13C-3(g) as long as the viatical settlement activities of the producer are incidental to the producer's insurance business activities. Viatical settlement activities are "incidental" to a producer's insurance business activities if that producer receives a commission or other remuneration as a result of no more than one viatical settlement contract completed in the calendar year for which the exemption is claimed.

4.4. The Insurance Commissioner may waive any requirement for an individual's nonresident viatical settlement broker's license , including the examination and continuing education requirements, for an applicant with a valid license from his or her home state if the applicant's home state awards nonresident licenses to residents of this state on a reciprocal basis. For instance, an individual nonresident broker's satisfaction of his or her home state's continuing education requirements for licensed viatical settlement brokers shall constitute satisfaction of this state's continuing education requirements if the nonresident broker's home state recognizes the satisfaction of its continuing education requirements imposed upon brokers from this state on substantially the same basis. An application for a nonresident's license may include a request for a waiver of any requirements of W.Va. Code § 33-13C-3 and this rule.

4.5. A passing score for the Viatical Settlements Broker Examination shall be a minimum score of 70%.

4.6. In addition to the information required in W. Va. Code § 33-13C-3 and subsection 4.2 of this section, the Commissioner reserves the right to request other information as determined necessary for issuance of a license, to ensure that the applicant for a license as a viatical settlement provider or a viatical settlement broker complies with W. Va. Code § 33-13C-3.

4.7. The application of a viatical settlement broker shall be accompanied by a fee of $200 for an entity license and $50 for an individual license. The date upon which the viatical settlement broker license shall expire for individuals and entities shall be at the discretion of the Commissioner. The license may be renewed annually by payment of $200 for an entity license and $50 for an individual license and a current copy of a letter of good standing obtained from the filing officer of the applicant's state of domicile.

4.8. If a viatical settlement broker fails to pay the renewal fee, the nonpayment shall result in a lapse of the license. A viatical settlement broker that allows its license to lapse may, within twelve months from the due date of the renewal fee, reinstate the same license without the necessity of passing a written examination. However, a penalty in the amount of $200 for an entity and $50 for an individual shall be required for any renewal fee received after the due date.

4.9.

4.9.a. An individual licensed as a viatical settlement broker shall complete fifteen hours of commission-approved continuing education every two years. Such requirement shall be met in accordance with directions posted on the Commissioner's website.

4.9.b. An individual who fails to comply with the continuing education requirement and who has not been granted an extension of time to comply shall promptly surrender their license to the Commissioner without demand.

W. Va. Code R. § 114-80-4