ORS 744.369
Unlawful life settlement contract actions


(1)

With respect to a life settlement contract or insurance policy, it is unlawful for a life settlement broker to knowingly solicit an offer from, effectuate a life settlement contract with or make a sale to a life settlement provider, financing entity or related provider trust that is controlling, controlled by or under common control with a life settlement broker, unless that relationship is disclosed to the owner.

(2)

With respect to a life settlement contract or insurance policy, it is unlawful for a life settlement broker to knowingly enter into a life settlement contract with an owner if, in connection with the life settlement contract, anything of value will be paid to a life settlement broker that is controlling, controlled by or under common control with a life settlement provider, financing entity or related provider trust that is involved in the settlement contract, unless that relationship is disclosed to the owner.

(3)

A person may not issue, solicit, market or otherwise promote the purchase of an insurance policy for the purpose of, or with an emphasis on, settling the policy.

(4)

A person may not enter into a premium finance arrangement under which the person receives any proceeds, fees or other consideration, directly or indirectly, from the proceeds of the policy, from the owner of the policy or from any other person with respect to the premium finance agreement, the life settlement contract or any other transaction related to the policy that are in addition to the amounts required to pay the principal, interest and service charges related to the policy premiums under the premium finance agreement or subsequent sale of the agreement. Any payments, charges, fees or other amounts in addition to the amounts required to pay the principal, interest and service charges related to policy premiums paid under the premium finance agreement must be remitted to the original owner of the policy or the original owner’s estate if the original owner is not living at the time of the determination of overpayment.

(5)

In the solicitation, application or issuance of a life insurance policy, a person may not employ any device, scheme or artifice in violation of ORS 743.040 (Personal insurance, insurable interest and beneficiaries).

(6)

A life settlement provider may not enter into a life settlement contract unless the life settlement promotional, advertising and marketing materials, as may be prescribed by regulation, have been filed with the Director of the Department of Consumer and Business Services.

(7)

A life insurance producer, insurance company, life settlement broker, life settlement provider or life settlement investment agent may not make any statement or representation to the applicant or policyholder in connection with the sale or financing of a life insurance policy to the effect that the insurance is free or without cost to the policyholder for any period of time unless provided in the policy.

(8)

A person may not present, cause to be presented or prepare with the knowledge or belief that it will be presented to or by a life settlement provider, life settlement broker, life settlement purchaser, life settlement investment agent, financing entity, insurer, insurance producer or any other person, false material information, or conceal material information, as part of, in support of or concerning a fact material to one or more of the following:

(a)

An application for the issuance of a life settlement contract or insurance policy;

(b)

The underwriting of a life settlement contract or insurance policy;

(c)

A claim for payment or benefit pursuant to a life settlement contract or insurance policy;

(d)

Premiums paid on an insurance policy, or as a result of a life settlement purchase agreement;

(e)

Payments and changes in ownership or beneficiary made in accordance with the terms of a life settlement contract, life settlement purchase agreement or insurance policy;

(f)

The reinstatement or conversion of an insurance policy;

(g)

The solicitation, offer, effectuation or sale of a life settlement contract, insurance policy or life settlement purchase agreement;

(h)

The issuance of written evidence of a life settlement contract, life settlement purchase agreement or insurance; or

(i)

A financing transaction.

(9)

A person may not employ any plan, financial structure, device, scheme or artifice to defraud related to settled policies.

(10)

A person may not enter into any practice or plan that involves stranger-originated life insurance.

(11)

A person may not fail to disclose to the insurer when requested by the insurer that the prospective insured has undergone a life expectancy evaluation by any person or entity other than the insurer or its authorized representatives in connection with the issuance of the policy.

(12)

A person may not, and may not permit employees or agents to:

(a)

Remove, conceal, alter, destroy or sequester from the director the assets or records of a licensee or other person engaged in the business of life settlements;

(b)

Misrepresent or conceal the financial condition of a licensee, financing entity, insurer or other person;

(c)

Transact the business of life settlements in violation of laws requiring a license, certificate of authority or other legal authority for the transaction of the business of life settlements; or

(d)

File with the director or the equivalent chief insurance regulatory official of another jurisdiction a document containing false information or otherwise conceal information about a material fact from the director.

(13)

A person may not embezzle, steal, misappropriate or convert moneys, funds, premiums, credits or other property of a life settlement provider, insurer, insured, owner, insurance policyowner or any other person engaged in the business of life settlements or insurance.

(14)

A person may not recklessly enter into, negotiate, broker or otherwise deal in a life settlement contract, the subject of which is a life insurance policy that was obtained by presenting false information concerning any fact material to the policy or by concealing, for the purpose of misleading another, information concerning any fact material to the policy, for which the person or the persons intended to defraud the policy’s issuer, the life settlement provider or the owner. For the purposes of this subsection, “recklessly” means engaging in conduct in conscious and clearly unjustifiable disregard of a substantial likelihood of the existence of the relevant facts or risks, such disregard involving a gross deviation from acceptable standards of conduct.

(15)

A person may not facilitate the change of state of ownership of a policy or certificate or the state of residency of an owner to a state or jurisdiction that does not have a law similar to ORS 744.318 (Definitions for ORS 744.318 to 744.384) to 744.384 (Rules), 744.991 (Criminal penalties) and 744.992 (Civil penalties) for the express purposes of evading or avoiding the provisions of ORS 744.318 (Definitions for ORS 744.318 to 744.384) to 744.384 (Rules), 744.991 (Criminal penalties) and 744.992 (Civil penalties).

(16)

A person may not attempt to commit, assist, aid or abet in the commission of, or conspire to commit the acts or omissions specified in, this subsection.

(17)

A life settlement investment agent shall not have any contact, directly or indirectly, with the owner or insured under the policy or have knowledge of the identity of the owner or insured. [2009 c.711 §15]

Source: Section 744.369 — Unlawful life settlement contract actions, https://www.­oregonlegislature.­gov/bills_laws/ors/ors744.­html.

744.052
Definitions for ORS 744.052 to 744.089
744.053
Requirements to be licensed as insurance producer for class of insurance
744.056
Exemptions from insurance producer licensing requirements
744.058
Written examination
744.059
Qualifications for license
744.061
Banking institution as insurance producer
744.062
Issuance of insurance producer license
744.063
Nonresident insurance producer license
744.064
Persons licensed elsewhere
744.067
Exemptions from prelicensing education or examination requirement
744.068
Required notifications
744.072
Renewal or reinstatement of insurance producer license
744.073
Temporary insurance producer license
744.074
Authority of director to place licensee on probation or to suspend, revoke or refuse to issue or renew license
744.076
Payment of commission, service fee or brokerage
744.077
Conditions under which person licensed as insurance producer and consultant may accept commission or fee
744.078
Appointment of insurance producers
744.079
Termination of relationship with insurance producer
744.081
Termination of appointment
744.082
Waiver of requirement for nonresident insurance producer license applicant
744.083
Trust account for premium funds
744.084
Certificate of deposit in lieu of trust account
744.086
Applicability of Insurance Code to insurance producers transacting title insurance
744.087
Filing insurance producers compensation agreements
744.088
Training requirements to be licensed as insurance producer for long term care insurance
744.089
Report of administrative action taken against insurance producer
744.091
Additional conditions under which person licensed as insurer or insurance producer may charge commission or service fee
744.093
Solicitation or sale of insurance policy by retail insurance producer or wholesale insurance producer
744.101
Definitions
744.104
Travel insurance through travel retailers
744.107
Violations
744.111
Rules
744.300
License and indorsement
744.301
Exemptions from license requirement
744.303
Certificate of errors and omissions insurance
744.306
Contract between insurer and managing general agent
744.308
Limitations on authority of insurer and managing general agent
744.311
Books, bank accounts and records
744.313
Financial examination
744.314
Rules
744.316
Authority of director if managing general agent violates provisions of ORS 744.300 to 744.316
744.318
Definitions for ORS 744.318 to 744.384
744.321
Life settlement providers
744.323
Life settlement brokers
744.324
Life settlement investment agents
744.326
License application
744.328
Issuance of license
744.331
Expiration of license
744.333
Individual acting as provider under license of firm or corporation
744.336
Notification by licensee of material change affecting qualification for license
744.338
Suspension, revocation, refusal to issue or renew license
744.341
Terms of contract
744.343
Annual report and statement by provider
744.346
Examination of business and practices of licensee or applicant
744.354
Disclosure by life settlement provider, broker or investment agent to policy owner
744.359
Disclosure by life settlement broker or provider to insurer
744.362
Disclosure by insurance company to policy owner
744.364
Life settlement contract requirements
744.367
Limitations on ability to enter life settlement contract
744.369
Unlawful life settlement contract actions
744.372
Advertising of life settlement contracts
744.374
Enforcement of life settlement contract provisions
744.382
Prohibitions on finder’s fee, solicitations, discrimination
744.384
Rules
744.502
Definitions
744.505
Adjuster license required
744.515
Exemptions from adjuster licensing requirement
744.518
License application
744.521
Powers of director to issue, renew, amend, suspend and reinstate licenses
744.523
Conditions for licensing, renewing license for or amending license of business entity
744.525
Resident adjuster qualifications
744.528
Nonresident adjuster qualifications
744.531
Classes of insurance for adjusters
744.538
Change of circumstance of nonresident adjuster
744.541
Adjustment of claim under policy issued by unauthorized insurer
744.555
Temporary adjuster permit
744.575
Adjusting claims involving credit life or credit health insurance
744.578
Licensee’s place of business
744.581
Notices required
744.584
Prohibited conduct
744.602
Definitions
744.605
Insurance consultant’s license required
744.609
Exemptions
744.611
License application
744.614
Powers of director to issue, renew, amend, suspend and reinstate licenses
744.617
Conditions for licensing, renewing license for or amending license of business entity
744.619
Qualifications for resident insurance consultant’s license
744.621
Qualifications for nonresident insurance consultant’s license
744.626
Classes of insurance for consultants
744.631
Change of circumstance of nonresident insurance consultant
744.635
Errors and omissions insurance
744.638
Licensee’s place of business
744.641
Notices required
744.644
Prohibited conduct
744.650
Disclosure by insurance consultants
744.655
Rebates prohibited
744.665
Continuing education
744.700
Definitions for ORS 744.700 to 744.740
744.702
Third party administrator license
744.704
Exemptions from license requirement
744.706
Application for license
744.708
Waiver of information requirement
744.710
Issuance or denial of license
744.712
Expiration and renewal of license
744.714
Registration of persons exempt from licensure
744.716
Notification of change in ownership or control
744.718
Suspension, revocation or refusal of issuance or renewal of license
744.720
Agreement between insurer and third party administrator
744.722
Relationship of insurer and third party administrator regarding payments
744.724
Books and records
744.726
Errors and omissions insurance
744.728
Advertising
744.730
Disposition of charges and premiums
744.732
Contingent fee agreements
744.734
Notice to insureds regarding third party administrator
744.736
Delivery from insurer to insured
744.738
Annual report
744.740
Responsibility of insurer using third party administrator
744.800
Qualifications for reinsurance intermediary brokers and managers
744.802
Exemptions from application of requirements for reinsurance intermediary brokers and managers
744.804
Conditions under which reinsurance intermediary broker and insurer may enter into transactions
744.806
Records required to be kept by reinsurance intermediary brokers
744.808
Prohibition on use of unlicensed reinsurance intermediary broker
744.810
Conditions under which reinsurance intermediary manager and reinsurer may enter into transactions
744.812
Prohibitions on actions of reinsurance intermediary managers
744.814
Prohibition on use of unlicensed reinsurance intermediary manager
744.816
Director access to books, accounts and records
744.818
Errors and omissions insurance for reinsurance intermediary manager
744.820
Director authority if reinsurance intermediary broker or manager violates provisions of ORS 744.800 to 744.818
744.850
Definitions for ORS 744.850 to 744.858
744.852
Limited license for rental companies
744.854
Kinds of insurance authorized by limited license
744.856
Conditions for offer or sale of insurance
744.858
Revocation or suspension of limited license
744.860
Definitions for ORS 744.860 to 744.870
744.862
Limited license to sell insurance
744.864
Permissible sales
744.866
Training program
744.868
License suspension and revocation or other penalty
744.870
Compensation, bonuses and incentives
744.872
Rules
744.991
Criminal penalties
744.992
Civil penalties
744.994
Effect of license expiration or surrender on director’s investigation or disciplinary proceedings
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