40-5004. Same; suspension, revocation, refusal to issue or renew license; grounds; hearing; powers of commissioner.
40-5004
40-5004. Same; suspension, revocation, refusal toissue or renew license; grounds; hearing; powers of commissioner.(a) The commissioner may refuse to issue, suspend, revoke orrefuse to renew the license of a viatical settlement provider or viaticalsettlement broker in the event that investigation by the commissioner disclosesthat:
(1) There was any material misrepresentation in the application for thelicense;
(2) the licensee or any officer, partner, member or key management personnelhas been convicted of fraudulent or dishonest practices, is subject to a finaladministrative action in this state or another state or is otherwise shown tobe untrustworthy or incompetent;
(3) the viatical settlement provider demonstrates a pattern of unreasonablepayments to viators;
(4) the licensee or any officer, partner, member or key management personnelhas been found guilty of, or has pleaded guilty or nolo contendereto, 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 settlementcontract that has not been approved pursuant to this act;
(6) the viatical settlement provider has failed to honor contractualobligations set out in a viatical settlement contract;
(7) the licensee no longer meets the requirements for initial licensure;
(8) the viatical settlement provider has assigned, transferred or pledged aviaticated policy to a person other than a viatical settlement providerlicensed in this state, viatical settlement purchaser, an accredited investoror qualified institutional buyer as defined respectively in regulation D, rule501 or rule 144A of the federal securities act of 1933, as in effect on theeffective date of this act, financing entity, special purpose entity or relatedprovider trust; or
(9) the licensee or any officer, partner, member or key management personnelhas violated any provision of this act.
(b) If the commissioner denies a license application or suspends, revokes orrefuses to renew the license of a viatical settlement provider or viaticalsettlement broker, the commissioner shall conduct a hearing in accordance withthe Kansas administrative procedure act.
History: L. 2002, ch. 158, § 4; May 23.