(1) Only a life insurance producer who has been duly licensed as a resident insurance producer with a lifeline of authority in this state or his or her home state for at least one year and is licensed as a nonresident producer in this state is permitted to operate as a broker.

     (2) Not later than thirty days from the first day of operating as a broker, the life insurance producer shall notify the commissioner that he or she intends acting as a broker on a form prescribed by the commissioner, pay a fee of one hundred dollars, and if a nonresident producer appoint the commissioner as attorney for service of process under subsection (6) of this section. Notification shall include an acknowledgement by the life insurance producer that he or she will operate as a broker in accordance with this chapter.

     (3) A person licensed as an attorney, certified public accountant, or financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the owner, whose compensation is not paid directly or indirectly by the provider or purchaser, may negotiate life settlement contracts on behalf of the owner without having to obtain a license as a broker.

     (4) The authority to act as a broker shall continue in force until suspended, revoked, or not renewed. The authority to act as a broker shall automatically expire if not timely renewed. The authority to act as a broker shall be valid for a time period coincident with the expiration date of the broker's insurance producer license. The authority to act as a broker is renewable at that time, upon payment of a renewal fee in the amount of one hundred dollars and if the payment is received by the commissioner prior to the expiration date, the broker's authority to act as a broker continues in effect.

     (a) If the renewal fee is not received by the commissioner prior to the expiration date, the broker shall pay to the commissioner in addition to the renewal fee, a surcharge as follows:

     (i) For the first thirty days or part thereof of delinquency the surcharge is fifty percent of the renewal fee;

     (ii) For the next thirty days or part thereof delinquency the surcharge is one hundred percent of the renewal fee;

     (b) If the payment of the renewal fee is not received by the commissioner after sixty days the surcharge is two hundred percent of the renewal fee.

     (5) Subsection (4)(a) of this section does not exempt any person from any penalty provided by law for transacting life settlement business without the valid authority to act as a broker.

     (6)(a) A nonresident broker shall appoint the commissioner as its attorney to receive service of, and upon whom shall be served, all legal process issued against it in this state upon causes of action arising within this state. Service upon the commissioner as attorney shall constitute service upon the broker. Service of legal process against the broker can be had only by service upon the commissioner.

     (b) With the appointment the broker shall designate the person to whom the commissioner shall forward legal process so served upon him or her. The broker may change the person by filing a new designation.

     (c) The appointment of the commissioner as attorney shall be irrevocable, shall bind any successor in interest or to the assets or liabilities of the broker, and shall remain in effect as long as there is in this state any contract made by the broker or liabilities or duties arising therefrom.

     (d) Duplicate copies of legal process against a broker for whom the commissioner is attorney shall be served upon him or her either by a person competent to serve summons, or by registered mail. At the time of service the plaintiff shall pay to the commissioner ten dollars, taxable as costs in the action.

     (e) The commissioner shall immediately send one of the copies of the process, by registered mail with return receipt requested, to the person designated for the purpose by the broker in its most recent designation filed with the commissioner.

     (f) The commissioner shall keep a record of the day and hour of service upon him or her of all legal process. Proceedings shall not be had against the broker, and the broker shall not be required to appear, plead, or answer until the expiration of forty days after the date of service upon the commissioner.

     (7) A broker may not use any person to perform the functions of a provider unless such a person holds a current, valid license as a provider, and as provided in this chapter.

[2009 c 104 § 4.]