ORS 744.374
Enforcement of life settlement contract provisions

  • reporting of violations
  • required antifraud initiatives

(1)

A person may not knowingly or intentionally interfere with the enforcement of 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) or investigations of suspected or actual violations 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).

(2)

A person in the business of life settlements may not knowingly or intentionally permit any person convicted of a felony involving dishonesty or breach of trust to participate in the business of life settlements.

(3)

Life settlements contracts and purchase agreement forms and applications for life settlements, regardless of the form of transmission, must contain the following statement or a substantially similar statement: “Any person who knowingly presents false information in this application is guilty of a crime and may be subject to fines and confinement in prison.”

(4)

The lack of a statement as required in subsection (3) of this section does not constitute a defense in any investigation or prosecution for an act violating any provision 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).

(5)

Any person engaged in the business of life settlements having knowledge or a reasonable suspicion that a fraudulent life settlement act is being, will be or has been committed must provide to the Director of the Department of Consumer and Business Services information as required by, and in a manner prescribed by, the director.

(6)

Any other person having knowledge or a reasonable belief that a fraudulent life settlement act is being, will be or has been committed may provide to the director the information required by, and in a manner prescribed by, the director.

(7)

Intentionally left blank —Ed.

(a)

No civil liability is imposed on and no cause of action arises from a person’s furnishing information concerning suspected, anticipated or completed fraudulent life settlement acts or suspected or completed fraudulent insurance acts, if the information is provided to or received from:

(A)

The director or the director’s employees, agents or representatives;

(B)

Federal, state or local law enforcement or regulatory officials or their employees, agents or representatives;

(C)

A person involved in the prevention and detection of fraudulent life settlement acts or that person’s agents, employees or representatives;

(D)

The National Association of Insurance Commissioners, the Financial Industry Regulatory Authority or the North American Securities Administrators Association, or their employees, agents or representatives, or any other regulatory body overseeing life insurance, life settlements, securities or investment fraud; or

(E)

The life insurer that issued the life insurance policy covering the life of the insured.

(b)

Paragraph (a) of this subsection shall not apply to statements made with actual malice. In an action brought against a person for filing a report or furnishing other information concerning a fraudulent life settlement act, the party bringing the action must plead specifically any allegation that paragraph (a) of this subsection does not apply because the person filing the report or furnishing the information did so with actual malice.

(c)

A person furnishing information as identified in paragraph (a) of this subsection is entitled to an award of attorney fees and costs if the person is the prevailing party in a civil cause of action for libel, slander or any other relevant tort arising out of activities in carrying out 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) and the party bringing the action was not substantially justified in doing so. For purposes of this paragraph, a proceeding is “substantially justified” if it had a reasonable basis in law or fact at the time that it was initiated. However, such an award does not apply to a person furnishing information concerning the person’s own fraudulent life settlement acts.

(d)

This section does not abrogate or modify common law or statutory privileges or immunities enjoyed by a person described in paragraph (a) of this subsection.

(8)

The documents and evidence obtained by the director in an investigation of suspected or actual fraudulent life settlement acts are privileged and confidential under ORS 705.137 (Information that is confidential or not subject to disclosure).

(9)

This section does not:

(a)

Preempt the authority or relieve the duty of other law enforcement or regulatory agencies to investigate, examine and prosecute suspected violations of law;

(b)

Prevent or prohibit a person from disclosing voluntarily information concerning life settlement fraud to a law enforcement or regulatory agency other than the Department of Consumer and Business Services; or

(c)

Limit the powers granted elsewhere by the laws of this state to the director or any other state department or agency to investigate and examine possible violations of law and to take appropriate action against wrongdoers.

(10)

Intentionally left blank —Ed.

(a)

Life settlement providers and life settlement brokers must have in place antifraud initiatives reasonably calculated to detect, prosecute and prevent fraudulent life settlement acts. At the discretion of the director, the director may order, or a licensee may request and the director may grant, such modifications of the required initiatives described in paragraph (b) of this subsection as necessary to ensure an effective antifraud program. The modifications may be more or less restrictive than the required initiatives as long as the modifications may reasonably be expected to accomplish the purpose of this section.

(b)

Antifraud initiatives must include:

(A)

Fraud investigators, who may be life settlement provider or life settlement broker employees or independent contractors; and

(B)

An antifraud plan, which must be submitted to the director. The antifraud plan must include, but is not limited to:
(i)
A description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures for resolving material inconsistencies between medical records and insurance applications;
(ii)
A description of the procedures for reporting possible fraudulent life settlement acts to the director;
(iii)
A description of the plan for antifraud education and training of underwriters and other personnel; and
(iv)
A description or chart outlining the organizational arrangement of the antifraud personnel who are responsible for investigating and reporting possible fraudulent life settlement acts and investigating unresolved material inconsistencies between medical records and insurance applications.

(c)

Antifraud plans submitted to the director are privileged and confidential under ORS 705.137 (Information that is confidential or not subject to disclosure). [2009 c.711 §17]

Source: Section 744.374 — Enforcement of life settlement contract provisions; reporting of violations; required antifraud initiatives, 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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