OAR 836-014-0320: Requirements for Brokers

(1) A life settlement broker may not seek or obtain any compensation from the policyholder or certificate holder without the written agreement of the policyholder or certificate holder obtained before the broker performs any services in connection with the life settlement. (2)(a) Unless convicted of a felony as described in section 17(2), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973), a life insurance producer meets the licensing requirements of this section and is permitted to operate as a life settlement broker in this state if the producer has been duly licensed: (A) As a resident insurance producer with a life line of authority in this state for at least one year; or (B) In the producer’s home state for at least one year and is licensed as a nonresident producer in this state. (b) A life insurance producer qualified to operate as a life settlement broker under this section must: (A) Not later than 30 days from the date the producer first acts as a life settlement broker, submit an application for a life settlement broker license; (B) Have in place an anti-fraud plan as required by section 17(10), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973); and (C) Comply with all other requirements of ORS 744.319 to 744.358 pertaining to acting as a life settlement broker. (3) A life settlement broker may not also be licensed as a life settlement investment agent. (4) The anti-fraud plan required under this rule must include initiative reasonably calculated to detect, prosecute and prevent fraudulent life settlement acts. The anti-fraud plan must include but need not be limited to: (a) A provision for use of fraud investigators; (b) A description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures to resolve material inconsistencies between medical records and insurance applications; (c) Procedures for reporting possible fraudulent life settlement activities to the director; (d) A plan for anti-fraud education and training of the broker’s staff and employees; and (e) A description or organizational chart of the personnel responsible for implementing and maintaining the integrity of the anti-fraud plan. (f) A demonstration that procedures are in place to prevent any person convicted of a felony involving dishonesty or breach of trust to participate in the life settlement operations of the applicant.