56-50-104 - License revocation and denial. - Tennessee Statutes

56-50-104 License revocation and denial.

(a)  The commissioner may refuse to issue, suspend, revoke or refuse to renew the license of a viatical settlement provider, viatical settlement broker or viatical settlement investment agent if the commissioner finds that:

     (1)  There was any material misrepresentation in the application for the license;

     (2)  The licensee or any officer, partner, member or key management personnel has been convicted of fraudulent or dishonest practices, is subject to a final administrative action or is otherwise shown to be untrustworthy or incompetent;

     (3)  The viatical settlement provider demonstrates a pattern of unreasonable payments to viators;

     (4)  The licensee or any officer, partner, member or key management personnel has been found guilty of, or has pleaded guilty or nolo contendere to, any felony, or to a misdemeanor involving fraud or moral turpitude, regardless of whether a judgment of conviction has been entered by the court;

     (5)  The viatical settlement provider has entered into any viatical settlement contract that has not been approved pursuant to this chapter;

     (6)  The viatical settlement provider has failed to honor contractual obligations set out in a viatical settlement contract or a viatical settlement purchase agreement;

     (7)  The licensee no longer meets the requirements for initial licensure;

     (8)  The viatical settlement provider has assigned, transferred or pledged a viaticated policy to a person other than a viatical settlement provider licensed in this state, viatical settlement purchaser, an accredited investor as defined in 17 CFR 230.501(a), or qualified institutional buyer as defined in 17 CFR 230.144A, both promulgated under the Federal Securities Act of 1933, financing entity, special purpose entity or related provider trust; or

     (9)  The licensee or any officer, partner, member or key management personnel has violated this chapter.

(b)  The commissioner may suspend, revoke or refuse to renew the license of a viatical settlement broker or a life insurance producer operating as a viatical settlement broker pursuant to this chapter if the commissioner finds that the viatical settlement broker or life insurance producer has violated this chapter or has otherwise engaged in bad faith conduct with one (1) or more viators.

(c)  If the commissioner suspends, revokes or refuses to renew the license of a viatical settlement provider, viatical settlement broker or viatical settlement investment agent, or suspends, revokes or refuses to renew a license of a life insurance producer operating as a viatical settlement broker pursuant to this chapter, the commissioner shall conduct a hearing in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3. If the commissioner denies a license application of a viatical settlement provider, viatical settlement broker or viatical settlement investment agent, the commissioner shall notify the applicant in writing of the denial and the grounds for denial.

[Acts 2009, ch. 604, § 5.]