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Licensing of Life Settlement Providers, Brokers, and Life Agents acting as Life Settlement Brokers

The Company Licensing and Registration Office handles the transactions related to the Certificate of Authority (license) of entities engaging in the business of Life Settlements.  Life Settlements are licensed under Texas Insurance Code (TIC) Chapter 1111A  and regulations are found in 28 Texas Administrative Code (TAC) Chapter 3.  Life Settlements can be both an insurance product and a securities product.   This may subject them to the jurisdiction of the Texas Department of Insurance and the State Securities Board (SSB).   However, only the initial transaction, which is the sale of the policy from the initial policy owner to the provider (negotiated by the broker) is regulated by the Texas Department of Insurance.

The Company Licensing and Registration Office handles the licensing and biennial renewals; surrender or non-renewal; and change of information for Providers, Provider Representatives, and Brokers.

NOTE:  On August 1, 2013, a new administrative rule became effective implementing the legislative changes made by Texas Insurance Code §1111A. 

Accordingly, the department has updated Texas Administrative Code 28, §§3.1701-3.1703, 3.1720-3.1730, 3.1740-3.1744, and 3.1760.  Some of the changes relevant to the licensing of life settlement brokers and providers under TIC §1111A include new continuing education mandates (see 28 TAC §3.1723) and an antifraud plan (TIC §1111A.003(j)(5) and 1111A.022).  Furthermore, all life settlement brokers and providers licensed prior to August 1, 2013 must submit a new application within 30 days after the new rule’s effective date of August 1, 2013, as mandated by TIC §1111A.026, in order to maintain an active license. If an application is submitted during this window, licensees will be grandfathered and authorized to continue conducting business pending approval or disapproval of their application.

 

Initial issuance of Certificate of Authority (COA) for Life Settlement Providers, Brokers, and Life Agents acting as Life Settlement Brokers

  • TDI form FIN430 (License Application for a Life Settlement Provider or Broker)
  • TDI form FIN 434 (Biographical Affidavit for Life Settlement Providers and Brokers).   Must be completed for all individuals specified in the instructions of forms FIN430 and FIN431, as adopted by rule

Life Agents acting as Life Settlement Brokers

  • TDI form FIN432 (Life Insurance Agent Notification to Act as a Life Settlement Broker). This form is required for applicants who have held a resident Texas life, or life and health license for at least one year. This form also applies to agents who hold a non-resident Texas life, or life and health license and have held a life, or life and health license in their domiciliary state for at least one year. This application is only for those wishing to act as a sole proprietor.

Surrender and/or Nonrenewal of Certificate for Life Settlement Providers, Brokers, and Life Agents acting as Life Settlement Brokers

  • TDI Form FIN431 (Application for Renewal, Surrender, or Change of Information for Life Settlement Provider or Broker).  DO NOT submit this form to meet the statutory requirements of  §1111A.026, which requires everyone to file a new application within 30 days after the administrative rule becomes effective. All licensees must re-register under the new legislation using forms adopted by rule, forms FIN430 or FIN432.
  • TDI Form FIN434  (Biographical Affidavit for Life Settlement Providers and Brokers).   Must be completed for all individuals specified in the instructions of forms FIN430 and FIN431, as adopted by rule.

Change of Information for Life Settlement Providers, Brokers, and Life Agents acting as Life Settlement Brokers

  • TDI Form FIN431 (Application for Renewal, Surrender, or Change of Information for Life Settlement Provider or Broker)

See additional Life/Health forms for information and checklists regarding Life Settlement forms compliance (applications, disclosures, etc.).   To ensure delivery and timely processing, filings should be submitted to the attention of the office as stated on the letterhead of each form.

For questions regarding the licensing process, please contact Christine Browning at (512) 475-1994 or Christine.Browning@tdi.texas.gov

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Last updated: 01/23/2014



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