Texas Insurance Code

§ 1111A.022 — LIFE SETTLEMENT ANTIFRAUD INITIATIVES

IN § 1111A.022Title 7. LIFE INSURANCE AND ANNUITIES · Part A. LIFE INSURANCE IN GENERAL · Ch. 1111A. LIFE SETTLEMENT CONTRACTS

Statute text

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(a)A provider or broker shall implement antifraud initiatives reasonably calculated to detect, prosecute, and prevent fraudulent life settlement acts. At the discretion of the commissioner, the commissioner may order, or a license holder may request and the commissioner may grant, a modification of the following required initiatives as necessary to ensure an effective antifraud program. A modification granted under this section may be more or less restrictive than the required initiatives so long as the modification may reasonably be expected to accomplish the purpose of this section. Antifraud initiatives must include:

(1)fraud investigators, who may be provider or broker employees or independent contractors; and

(2)an antifraud plan, which must be submitted to the commissioner and must include:

(A)a description of the procedures for detecting and investigating possible fraudulent life settlement acts and procedures for resolving material inconsistencies between medical records and insurance applications;

(B)a description of the procedures for reporting possible fraudulent life settlement acts to the commissioner;

(C)a description of the plan for antifraud education and training of underwriters and other personnel; and

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Legislative history

Added by Acts 2011, 82nd Leg., R.S., Ch. 1156 (H.B. 2277), Sec. 3, eff. September 1, 2011.