Life Settlement Broker (Individuals & Business Entity)
Definition
LIFE SETTLEMENT – Payment of a portion of the proceeds from Life Insurance to an Insured who is terminally ill.
LIFE SETTLEMENT BROKER LICENSE – Authority to advertise/advise a person on availability of life settlement (for fee, commissions or other valuable consideration). Represents only Viator's interests. (REF: Public Act No. 08-175)
LIFE SETTLEMENT PROVIDER LICENSE – Authority to enter into or effectuate a Viatical or Life Settlement contract.
Applicable Statutes
C.G.S. §38a-465 – see Laws and Regulations
Fees
Initial: $66.00
Amendment: $66.00
Renewal: $40.00
No pro-rating, non-refundable $26.00 application fee.
Duration
One (1) year – Renews March 31st EVERY year.
How to Apply
To determine if you need a Life Settlement Broker or Life Settlement Registration, please see Important Information section below.
Residents:
- Apply on the National Insurance Producer Registry (NIPR). Under Licensing Center, select “Apply for a New License.”
Non-Residents:
- Apply at National Insurance Producer Registry (NIPR). Under Licensing Center, select “Apply for a New License.”
- Applicants must hold a same or similar license in any other state.
- Residents and Non-Residents must also complete the following:
Residents and Non-Residents must also complete the following:
- Business Entity: must submit a Biographical Affidavit for each individual who will be acting as a Life Settlement Broker on their behalf Attach document to the NIPR warehouse.
- Anti-Fraud Plan (C.G.S. 38a-465a(5)(A)(B)(C)(D)) must include:
- A description of the procedures for detecting and investigating possible fraudulent acts and procedures for resolving material inconsistencies between medical records and insurance applications;
- A description of the procedures for reporting fraudulent insurance acts to the commissioner;
- A description of the plan for anti-fraud education and training for its underwriters and other personnel; and
- A written description or chart outlining the arrangement of the anti-fraud personnel responsible for the investigation and reporting of possible fraudulent insurance acts and investigating unresolved material inconsistencies between medical records and insurance applications.
The anti-fraud plan must be reasonably calculated to detect, prosecute, and prevent fraudulent life settlement acts. The Commissioner may order, or a licensee may request and the Commissioner may grant, plan modifications necessary to ensure an effective anti-fraud program. Fraud investigators must be included in the plan and may be provider or broker employees or independent contractors. (C.G.S. 38a-465j(i)(1))
Providers and brokers must print the following separate, signed fraud warnings on their applications and on their life settlement contracts as follows: “Any person who knowingly presents false information in an application for insurance or life settlement contract is guilty of a crime and may be subject to fines and confinement in prison.”
(C.G.S. 38a-465f(12))
- Anti-Fraud plans submitted to the commissioner are (1) privileged and confidential, (2) not public records, and (3) not subject to discovery or subpoena in a civil or criminal action. (C.G.S. 38a-465j(g)(1))
- The Anti-Fraud Plan must be added to the NIPR warehouse.
Designated Responsible Licensed Person (DRLP)
Business Entities Only: All states require that business entities or agencies appoint a licensed producer or responsible person to serve as the agency's authority. The Designated Responsible Licensed Producer/Person (DRLP) must hold an active Connecticut license, whether resident or non-resident. While the lines of authority between the business entity and the DRLP need not match exactly, the license types must correspond.
There are no restrictions on the number of DRLPs that can be included on a license.
DRLP required: Yes
How to Renew
- Renewal notices are EMAILED about 90 days before the expiration date.
- Apply at National Insurance Producer Registry (NIPR). Under Licensing Center, select “Renew an Existing License.”
How to Amend Lines of Authority
Not applicable.
How to Reinstate a License
- After March 31st EVERY year, reinstate the license by going to the National Insurance Producer Registry (NIPR). Under Licensing Center, select “Apply for a New License.”
- Business Entity: will need to submit the Biographical Affidavit (See instructions for “How to Apply” above.)
- All applicants will need to submit the Anti-Fraud Plan. (See instructions for “How to Apply” above.)
How to change License information (ie.: email and address)
Update your License Information
Print a copy of the license
Initial Education Requirements
- Anti-Fraud Plan: See “How to Apply” above for details.
- Biographical Affidavit: See “How to Apply” above for details.
Waivers due to Designations
None.
Renewal Continuing Education (CE) Requirements (C.G.S 38a-465a(p))
- Resident individuals with only a LIFE SETTLEMENT BROKER license need 15 hours of continuing education in the Life/Accident & Health or Sickness category every two years.
- Click here to view your CE transcript.
- Click here to find an provider or course.
Cancel License
License Voluntary – Surrender Request
Important Information
This license type does not require fingerprints.