E.__The settlement provider has entered into any settlement contract that has not been approved pursuant to this chapter;

F.__The settlement provider has failed to honor contractual obligations set out in a settlement contract;

G.__The settlement provider no longer meets the requirements for initial licensure;

H.__The settlement provider has assigned, transferred or pledged a policy acquired pursuant to a settlement contract to a person other than a settlement provider licensed in this State, an accredited investor or qualified institutional buyer as defined respectively in Regulation D, Rule 501 and Rule 144A of the Federal Securities Act of 1933, as amended, a financing entity, a special purpose entity or a related provider trust; or

I.__The licensee has violated any of the provisions of this chapter or any rules adopted pursuant to this chapter.

2. Hearing. Before the superintendent may deny a license application or suspend, revoke or refuse to renew the license of a viatical settlement provider, the licensee or applicant has an opportunity for a hearing in accordance with Title 5, chapter 375, subchapter IV 4.

3. Administrative penalty. The superintendent may, in addition to denying a license application or suspending or revoking a license, assess an administrative civil forfeiture of $500 for each willful violation of this chapter. This section may not be construed to diminish the penalties available for any violation of chapter 23, in addition to any penalties authorized under section 12-A.

Sec. 8. 24-A MRSA §6805, as enacted by PL 1997, c. 430, §1 and affected by §2, is amended to read:

§6805. Approval of settlements contracts; disclosure statements

and applications