Section 214. (a) The commissioner may suspend, revoke or refuse to renew the license of a licensee if the commissioner finds that:

Terms Used In Massachusetts General Laws ch. 175 sec. 214

  • Contract: A legal written agreement that becomes binding when signed.
  • Conviction: A judgement of guilt against a criminal defendant.
  • Fraud: Intentional deception resulting in injury to another.
  • 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.

(1) there was a material misrepresentation in the application for the license;

(2) the licensee or any officer, partner, member or director has been convicted or determined by a regulator to have committed a fraudulent or dishonest practice, is subject to a final administrative action or is otherwise shown to be untrustworthy or incompetent to act as a licensee;

(3) if a life settlement provider, the licensee demonstrates a pattern of unreasonably withholding payments to policy owners;

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

(5) the licensee or any officer, partner, member or director has been convicted of a felony or a misdemeanor of which criminal fraud is an element, or the licensee has pleaded guilty or had the case continued without a finding with respect to a felony or a misdemeanor of which criminal fraud or moral turpitude is an element, regardless of whether a judgment of conviction has been entered by the court;

(6) the life settlement provider has entered into a life settlement contract using a form that has not been approved under sections 213 to 223E, inclusive;

(7) the life settlement provider has failed to honor contractual obligations set out in a life settlement contract;

(8) the life settlement provider has assigned, transferred or pledged a settled policy to a person other than a life settlement provider licensed under this chapter, a purchaser, an accredited investor or qualified institutional buyer as defined respectively in Regulation D of Rule 501 of the federal Securities Act of 1933, 17 C.F.R. § 230.501, as amended, or rule 144A of the federal Securities Act of 1933, 17 C.F.R. § 230.144A, as amended, a financing entity, a special purpose entity or a related provider trust; or

(9) the licensee or any officer, partner, member or key management personnel has violated sections 213 to 223E, inclusive.

(b) Before the commissioner denies a license application or suspends, revokes or refuses to renew the license of a licensee under sections 213 to 223E, inclusive, the commissioner shall conduct a hearing in accordance with chapter 30A.

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