(a)  A provider lawfully transacting business in this state prior to the effective date of this act may continue to do so pending approval or disapproval of that person‘s application for a license as long as the application is filed with the commissioner not later than thirty (30) days after publication by the commissioner of an application form and instructions for licensure of providers. If the publication of the application form and instructions is prior to the effective date of this act, then the filing of the application shall not be later than thirty (30) days after the effective date of this act. During the time that such an application is pending with the commissioner, the applicant may use any form of life settlement contract that has been filed with the commissioner pending approval thereof, provided that such form is otherwise in compliance with the provisions of this chapter. Any person transacting business in this state under this provision shall be obligated to comply with all other requirements of this chapter.

Terms Used In Rhode Island General Laws 27-72-18

  • Commissioner: means the director of the department of business regulation or his or her designee. See Rhode Island General Laws 27-72-2
  • Contract: A legal written agreement that becomes binding when signed.
  • Owner: means the owner of a life insurance policy or a certificate holder under a group policy, with or without a terminal illness, who enters or seeks to enter into a life settlement contract. See Rhode Island General Laws 27-72-2
  • Person: means any natural person or legal entity including, but not limited to, a partnership, limited liability company, association, trust or corporation. See Rhode Island General Laws 27-72-2
  • Provider: means a person, other than an owner, who enters into or effectuates a life settlement contract with an owner, a provider does not include:

    (i)  Any bank, savings bank, savings and loan association, credit union;

    (ii)  A licensed lending institution or creditor or secured party pursuant to a premium finance loan agreement which takes an assignment of a life insurance policy or certificate issued pursuant to a group life insurance policy as collateral for a loan;

    (iii)  The insurer of a life insurance policy or rider to the extent of providing accelerated death benefits or riders or cash surrender value;

    (iv)  Any natural person who enters into or effectuates no more than one agreement in a calendar year for the transfer of a life insurance policy or certificate issued pursuant to a group life insurance policy, for compensation or anything of value less than the expected death benefit payable under the policy;

    (v)  A purchaser;

    (vi)  Any authorized or eligible insurer that provides stop loss coverage to a provider; purchaser, financing entity, special purpose entity, or related provider trust;

    (vii)  A financing entity;

    (viii)  A special purpose entity;

    (ix)  A related provider trust;

    (x)  A broker; or

    (xi)  An accredited investor or qualified institutional buyer as defined; respectively, in regulation D, rule 501 or rule 144A of the Federal Securities Act of 1933, as amended, who purchases a life settlement policy from a provider. See Rhode Island General Laws 27-72-2

  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.

(b)  A person who has lawfully negotiated life settlement contracts between any owner residing in this state and one or more providers for at least one year immediately prior to the effective date of this act may continue to do so pending approval or disapproval of that person’s application for a license as long as the application is filed with the commissioner not later than thirty (30) days after publication by the commissioner of an application form and instructions for licensure of brokers. If the publication of the application form and instructions is prior to the effective date of this chapter, then the filing of the application shall not be later than thirty (30) days after the effective date of this act. Any person transacting business in this state under this provision shall be obligated to comply with all other requirements of this chapter.

History of Section.
P.L. 2009, ch. 195, § 1; P.L. 2009, ch. 262, § 1.