The New York State Insurance Department has used an emergency adoption process to keep the state’s life settlement provider and intermediary licensing program in place.
The New York department filed the life settlement licensing regulations with the New York secretary of state July 8, and the regulations are set to appear in the State Register July 27.
The regulations sets the initial licensing fees at $10,000 for life settlement providers and at $7,500 for intermediaries, and the renewal fees at $5,000 for providers and $2,500 for intermediaries.
Renewal fees are due every 2 years.
Life settlement brokers must pay a $40 annual licensing fee.
In addition to paying licensing and renewal fees, a provider must show that its assets exceed its liabilities by $250,000, or else it must place a surety bond or securities with a value of at least $250,000 in trust with the state insurance superintendent.
The emergency regulations implement a law adopted in 2009.
The New York department began using the emergency process to promulgate the regulations in April 2010, and it proposed a permanent version of the regulations in February.
If the New York department failed to keep the emergency regulations in effect while waiting for approval for the permanent regulations, life settlement providers and intermediaries could continue to operate without being registered with the superintendent, and individuals and companies that wanted to do business as providers or intermediaries in New York could not enter the market, officials say