(a) General form filing requirement. A person must not use a form used to effectuate a life settlement in this state unless the form has been filed with and approved by the commissioner under this section, if prior approval is required by subsection (f) of this section.
(b) Required life settlement contract form filings. Forms that must be filed include the following:
  (1) settlement contracts, including any amendments;
  (2) disclosures;
  (3) verification of coverage forms;
  (4) escrow or trust agreements;
  (5) documents used to obtain or release confidential information, including documents used by the life settlement broker or provider that in any way refer to, affect, request, or relate to a life settlement broker or provider obtaining or releasing confidential information;
  (6) owner consent forms;
  (7) power of attorney forms;
  (8) settlement applications;
  (9) premium finance loan documents as specified in Insurance Code §1111A.002(11)(B), unless exempted by §1111A.002(11-A); and
  (10) any other form used by a life settlement broker or provider to effectuate a life settlement contract in this state.
(c) Submission. Licensees must submit one copy of forms as required by this section. Non-electronic filings must be submitted to the Texas Department of Insurance, Life and Health Division, Filings Intake, MC-LH-LHL, P.O. Box 12030, Austin, Texas 78711-2030. A filing submitted electronically must be submitted through the System for Electronic Rate and Form Filing. A person must hold a life settlement broker's or provider's license issued by the department, have authority to operate as a life settlement broker, or be authorized under subsection (d)(2) of this section to submit forms.
(d) Transmittal checklist requirement. The commissioner adopts by reference the Transmittal Checklist for Life/Health Rate and Form Filings (revised May 2013) to be filed with and attached to forms filed pursuant to subsection (c) of this section. The form may be obtained from the Texas Department of Insurance, Life and Health Division, Filings Intake, MC-LH-LHL, P.O. Box 12030, Austin, Texas 78711-2030 or by accessing the department's website at www.tdi.texas.gov/forms. The transmittal checklist must provide complete and accurate information about the filing, be signed by a duly authorized representative or attorney of the life settlement broker or provider, and include the following information:
  (1) the name and license number of the submitting life settlement broker or provider;
  (2) a designated contact person for the filing, including the individual's name, address, phone number, and, if available, fax number, and email address. If the form filing is submitted by anyone other than the life settlement broker or provider, the filing must include an attachment executed by the life settlement broker or provider, or by an officer of an entity, that designates the person submitting the filing as the contact for that filing;
  (3) a list of all submitted forms and an explanation of the purpose and use of each form;
  (4) if applicable, a list of the form numbers and approval dates of all previously reviewed forms with which the submitted form will be used and a statement explaining when the submitted form will be used;
  (5) a designation indicating the type of filing, as those types are described in subsection (h) of this section; and
  (6) any applicable information, attachments, and certifications specified in this section.
(e) Specific form filing requirements. Forms filed pursuant to this section are subject to the requirements set forth in paragraphs (1) - (3) of this subsection.
  (1) Any form filed pursuant to this section must:
    (A) prominently display the full name, home office mailing address, and telephone number, and email address, if available, of the life settlement broker or provider;
    (B) include specimen language and specimen fill-in material. A broker or provider is prohibited from including the confidential information of any policy owner in the filed form. Fill-in lines, blanks, and text boxes that are clearly titled with the information to be filled in do not require specimen language;
    (C) be submitted on 8-1/2-by-11-inch paper or formatted for that size if submitted electronically. The department will not accept bound forms;
    (D) be submitted in typewritten, computer-generated, or printer's proof format and be clearly legible;
    (E) include a unique form number designation sufficient to distinguish it from all other forms used by the life settlement broker or provider. The form number must be located in the lower left-hand corner of the cover page or on the first page of the form, if visible with the cover closed; and
    (F) a designation indicating whether the form is filed as file and use or review and approval prior to use as those categories are described in subsection (f) of this section.
  (2) A form filed under this section may contain variable language, provided the variable language is both bracketed and accompanied by a clear explanation of how the material will vary and how it will be used.
  (3) The department will not accept handwritten forms or handwritten corrections.
(f) Categories for form filings.
  (1) Review and approval prior to use; deemer. A life settlement broker or provider must file life settlement contract forms, disclosures, and verification of coverage forms under this paragraph with the department not less than 60 days prior to the life settlement broker's or provider's use or delivery of such form. After the submission of a filing under this subsection, the life settlement broker or provider may not use or deliver the form on or before 60 days from the date the department receives the form unless the department approves the form during the 60-day period. If the department has not approved the form by the 60th day after the date the department receives the form, the life settlement broker or provider may deem the form approved only if:
    (A) the life settlement broker or provider has not requested an extension or waiver of the review period; and
    (B) the department has not disapproved the form.
  (2) File and use. A life settlement broker or provider may immediately use and deliver a form filed under this category in this state until the department makes a request for corrections or disapproves the form. A life settlement broker or provider may file any other form identified in subsection (b)(4) - (10) of this section under this paragraph. A filing under this category must include the information and certifications specified in subsection (i)(1) and (2) of this section. Any form that the department has previously disapproved pursuant to subsection (k) of this section is not eligible for filing under this category.
  (3) Forms approved prior to the effective date of this section. Forms approved prior to the effective date of this section must comply with this subchapter six months from the effective date of this section.
(g) Extension or waiver of review period. A request for extension of time for the approval of a form must comply with paragraphs (1) - (5) of this subsection.
  (1) A life settlement broker or provider may request in writing an extension to the approval period for a form for an additional period not to exceed 45 days.
  (2) The department automatically grants a timely request for extension under this section on the date it receives the request.
  (3) The department will only grant one extension under this section.
  (4) If the department grants an extension under this section and does not affirmatively approve or disapprove the form before the extended period expires, the form is considered approved on the first day after the date the extended period expires.
  (5) A life settlement broker or provider may waive the deeming of the form filings.
(h) Types of form filings. The types of life settlement contract form filings available for designation on the transmittal checklist are as follows:
  (1) New form. A form that the department has not previously reviewed or approved under Insurance Code §1111A.005 and this subchapter, except for a form withdrawn by a life settlement broker or provider pursuant to paragraph (6) of this subsection.
  (2) Informational form. A form submitted for informational purposes only.
  (3) Substantially similar to a previously approved form. A form that is substantially similar to a form that the department reviewed or approved on or after the effective date of this subchapter. This type of form filing requires the information and certification specified in subsection (i)(1), (2), and (4) of this section.
Cont'd...