The New York State Insurance Department has issued the final licensing and registration requirements needed to implement a life settlement law enacted in 2009.
The rules require a life settlement provider working in the state to pay a $10,000 license fee. A life settlement intermediary would pay a $7,500 registration fee.
Those fees were reduced from levels originally proposed by the department, which would have imposed a $20,000 fee for a provider license and a $10,000 fee for an intermediary registration.
The new rules set an annual license fee of $40 for life settlement brokers.
Life settlement providers will pay a $5,000 license renewal fee every 2 years, and intermediaries will pay a $2,500 registration renewal fee every 2 years.
In addition, a settlement provider must post a $250,000 surety bond; place securities valued at $250,000 in trust; or maintain financial assets exceeding liabilities by at least $250,000.