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N.Y. Seeks Comment On Settlement Rules

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The New York State Insurance Department is asking for comments on proposed life settlement sector licensing and registration requirements.

The proposed rules would require a life settlement provider to pay a $20,000 license fee, and it would require a life settlement intermediary operating in the state to pay a $10,000 registration fee.

The rules would set an annual license fee of $40 for life settlement brokers.

Providers would be subject to $5,000 in license renewal fees every 2 years; intermediaries would pay a $2,500 renewal fee every 2 years.

In addition to paying the licensing fee and the renewal fees, a settlement provider would have to post a $250,000 surety bond.

The New York department plans to define a “life settlement intermediary” as a person who maintains a system for collecting offers to sell or buy life insurance policies to brokers or providers.

Comments on the proposed rules are due April 2.

A copy of the New York life settlement rules comment invitation is available here.