The following provisions shall apply to this act: (a) âAdvertisementâ means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet, or similar communications media, including film strips, motion pictures, and videos, published, disseminated, circulated, or placed before the public, directly or indirectly, for the purpose of creating an interest in or inducing a person to purchase or sell, assign, devise, bequest, or transfer the death benefit or ownership of a life insurance policy or an interest in a life insurance policy pursuant to a life settlement contract. (b) âBrokerâ means a person who, on behalf of an owner, and for a fee, commission, or other valuable consideration, offers or attempts to negotiate life settlement contracts between an owner and providers. A broker represents only the owner and owes a fiduciary duty to the owner to act according to the ownerâs instructions, and in the best interest of the owner, notwithstanding the manner in which the broker is compensated. A broker does not include an attorney, certified public accountant, or financial planner retained in the type of practice customarily performed in his or her professional capacity to represent the owner whose compensation is not paid directly or indirectly by the provider or any other person, except the owner. (c) âBusiness of life settlementsâ means an activity involved in, but not limited to, offering to enter into, soliciting, negotiating, procuring, effectuating, monitoring, or tracking of life settlement contracts. (d) âCommissionerâ means the Insurance Commissioner. (e) âFinancing entityâ means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a life settlement contract, as to which both of the following apply: (1) It is an entity whose principal activity related to the transaction is providing funds to effect the life settlement contract or purchase of one or more policies. (2) It is an entity that has an agreement in writing with one or more providers to finance the acquisition of life settlement contracts. (f) âFinancing transactionâ means a transaction in which a licensed provider obtains financing from a financing entity, including, without limitation, any secured or unsecured financing, any securitization transaction, or any securities offering which either is registered or exempt from registration under federal and state securities law. (g) âFraudulent life settlement actâ includes all of the following: (1) Acts or omissions committed by any person that, for the purpose of depriving another of property or for pecuniary gain, commits or permits its employees or its agents to engage in acts, including, but not limited to, the following: (A) Presenting, causing to be presented, or preparing with knowledge and belief that it will be presented to or by a provider, premium finance lender, broker, insurer, insurance producer, or any other person, false material information, or concealing material information, as part of, in support of, or concerning a fact material to one or more of the following: (i) An application for the issuance of a life settlement contract or insurance policy. (ii) The underwriting of a life settlement contract or insurance policy. (iii) A claim for payment or benefit pursuant to a life settlement contract or insurance policy. (iv) Premiums paid on an insurance policy. (v) Payments and changes in ownership or beneficiary made in accordance with the terms of a life settlement contract or insurance policy. (vi) The reinstatement or conversion of an insurance policy. (vii) The solicitation, offer to enter into, or effectuation of, a life settlement contract or insurance policy. (viii) The issuance of written eviden
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