(a) With eachapplication for a viatical settlement, the provider or broker shall provide theviator with at least the following disclosures no later than the time theapplication for the contract is signed by all parties. The disclosures shall beprovided in a separate document that is signed by the viator and the provideror broker and shall provide the following information:
(1) There are possiblealternatives to contracts including any accelerated death benefits or policyloans offered under the viator's policy.
(2) Some or all of theproceeds of the viatical settlement may be taxable under federal income tax andstate franchise and income taxes, and assistance should be sought from aprofessional tax advisor.
(3) Proceeds of theviatical settlement could be subject to the claims of creditors.
(4) Receipt of theproceeds of a viatical settlement may adversely affect the viator's eligibilityfor Medicaid or other government benefits or entitlements, and advice should beobtained from the appropriate government agencies.
(5) The viator has theright to rescind a contract for 10 business days after the receipt of theviatical settlement proceeds by the viator, as provided in G.S. 58‑58‑250(h).If the insured dies during the rescission period, the settlement contract shallbe deemed to have been rescinded, subject to repayment of all viaticalsettlement proceeds and any premiums, loans, and loan interest to the provideror purchaser.
(6) Funds will be sentto the viator within three business days after the provider has received theinsurer or group administrator's acknowledgment that ownership of the policy orinterest in the certificate has been transferred and the beneficiary has beendesignated.
(7) Entering into acontract may cause other rights or benefits, including conversion rights andwaiver of premium benefits that may exist under the policy, to be forfeited bythe viator. Assistance should be sought from a financial adviser.
(8) Disclosure to aviator shall include distribution of a brochure describing the process ofviatical settlements. The NAIC's form for the brochure shall be used unless theCommissioner develops one.
(9) The disclosuredocument shall contain the following language: "All medical, financial, orpersonal information solicited or obtained by a provider or broker about aninsured, including the insured's identity or the identity of family members, aspouse or a significant other may be disclosed as necessary to effect theviatical settlement between the viator and the provider. If you are asked toprovide this information, you will be asked to consent to the disclosure. Theinformation may be provided to someone who buys the policy or provides fundsfor the purchase. You may be asked to renew your permission to shareinformation every two years.
(10) The insured may becontacted by either the provider or broker or its authorized representative forthe purpose of determining the insured's health status. This contact is limitedto once every three months if the insured has a life expectancy of more thanone year, and no more than once per month if the insured has a life expectancyof one year or less.
(b) A provider shallprovide the viator with at least the following disclosures no later than thedate the contract is signed by all parties. The disclosures shall beconspicuously displayed in the contract or in a separate document signed by theviator and the provider or broker, and provide the following information:
(1) State theaffiliation, if any, between the provider and the issuer of the insurancepolicy to be viaticated.
(2) The document shallinclude the name, address, and telephone number of the provider.
(3) A broker shalldisclose to a prospective viator the amount and method of calculating thebroker's compensation. The term "compensation" includes anything ofvalue paid or given to a broker for the placement of a policy.
(4) If an insurancepolicy to be viaticated has been issued as a joint policy or involves familyriders or any coverage of a life other than the insured under the policy to beviaticated, the viator shall be informed of the possible loss of coverage onthe other lives under the policy and shall be advised to consult with his orher insurance producer or the insurer issuing the policy for advice on theproposed viatical settlement.
(5) State the dollaramount of the current death benefit payable to the provider under the policy.If known, the provider shall also disclose the availability of any additionalguaranteed insurance benefits, the dollar amount of any accidental death anddismemberment benefits under the policy, and the provider's interest in thosebenefits.
(6) State the name,business address, and telephone number of the independent third‑partyescrow agent and the fact that the viator or owner may inspect or receivecopies of the relevant escrow or trust agreements or documents.
(c) If the providertransfers ownership or changes the beneficiary of the insurance policy, theprovider shall communicate the change in ownership or beneficiary to theinsured within 20 days after the change. (2001‑436, s. 3.)
(a) With eachapplication for a viatical settlement, the provider or broker shall provide theviator with at least the following disclosures no later than the time theapplication for the contract is signed by all parties. The disclosures shall beprovided in a separate document that is signed by the viator and the provideror broker and shall provide the following information:
(1) There are possiblealternatives to contracts including any accelerated death benefits or policyloans offered under the viator's policy.
(2) Some or all of theproceeds of the viatical settlement may be taxable under federal income tax andstate franchise and income taxes, and assistance should be sought from aprofessional tax advisor.
(3) Proceeds of theviatical settlement could be subject to the claims of creditors.
(4) Receipt of theproceeds of a viatical settlement may adversely affect the viator's eligibilityfor Medicaid or other government benefits or entitlements, and advice should beobtained from the appropriate government agencies.
(5) The viator has theright to rescind a contract for 10 business days after the receipt of theviatical settlement proceeds by the viator, as provided in G.S. 58‑58‑250(h).If the insured dies during the rescission period, the settlement contract shallbe deemed to have been rescinded, subject to repayment of all viaticalsettlement proceeds and any premiums, loans, and loan interest to the provideror purchaser.
(6) Funds will be sentto the viator within three business days after the provider has received theinsurer or group administrator's acknowledgment that ownership of the policy orinterest in the certificate has been transferred and the beneficiary has beendesignated.
(7) Entering into acontract may cause other rights or benefits, including conversion rights andwaiver of premium benefits that may exist under the policy, to be forfeited bythe viator. Assistance should be sought from a financial adviser.
(8) Disclosure to aviator shall include distribution of a brochure describing the process ofviatical settlements. The NAIC's form for the brochure shall be used unless theCommissioner develops one.
(9) The disclosuredocument shall contain the following language: "All medical, financial, orpersonal information solicited or obtained by a provider or broker about aninsured, including the insured's identity or the identity of family members, aspouse or a significant other may be disclosed as necessary to effect theviatical settlement between the viator and the provider. If you are asked toprovide this information, you will be asked to consent to the disclosure. Theinformation may be provided to someone who buys the policy or provides fundsfor the purchase. You may be asked to renew your permission to shareinformation every two years.
(10) The insured may becontacted by either the provider or broker or its authorized representative forthe purpose of determining the insured's health status. This contact is limitedto once every three months if the insured has a life expectancy of more thanone year, and no more than once per month if the insured has a life expectancyof one year or less.
(b) A provider shallprovide the viator with at least the following disclosures no later than thedate the contract is signed by all parties. The disclosures shall beconspicuously displayed in the contract or in a separate document signed by theviator and the provider or broker, and provide the following information:
(1) State theaffiliation, if any, between the provider and the issuer of the insurancepolicy to be viaticated.
(2) The document shallinclude the name, address, and telephone number of the provider.
(3) A broker shalldisclose to a prospective viator the amount and method of calculating thebroker's compensation. The term "compensation" includes anything ofvalue paid or given to a broker for the placement of a policy.
(4) If an insurancepolicy to be viaticated has been issued as a joint policy or involves familyriders or any coverage of a life other than the insured under the policy to beviaticated, the viator shall be informed of the possible loss of coverage onthe other lives under the policy and shall be advised to consult with his orher insurance producer or the insurer issuing the policy for advice on theproposed viatical settlement.
(5) State the dollaramount of the current death benefit payable to the provider under the policy.If known, the provider shall also disclose the availability of any additionalguaranteed insurance benefits, the dollar amount of any accidental death anddismemberment benefits under the policy, and the provider's interest in thosebenefits.
(6) State the name,business address, and telephone number of the independent third‑partyescrow agent and the fact that the viator or owner may inspect or receivecopies of the relevant escrow or trust agreements or documents.
(c) If the providertransfers ownership or changes the beneficiary of the insurance policy, theprovider shall communicate the change in ownership or beneficiary to theinsured within 20 days after the change. (2001‑436, s. 3.)
(a) With eachapplication for a viatical settlement, the provider or broker shall provide theviator with at least the following disclosures no later than the time theapplication for the contract is signed by all parties. The disclosures shall beprovided in a separate document that is signed by the viator and the provideror broker and shall provide the following information:
(1) There are possiblealternatives to contracts including any accelerated death benefits or policyloans offered under the viator's policy.
(2) Some or all of theproceeds of the viatical settlement may be taxable under federal income tax andstate franchise and income taxes, and assistance should be sought from aprofessional tax advisor.
(3) Proceeds of theviatical settlement could be subject to the claims of creditors.
(4) Receipt of theproceeds of a viatical settlement may adversely affect the viator's eligibilityfor Medicaid or other government benefits or entitlements, and advice should beobtained from the appropriate government agencies.
(5) The viator has theright to rescind a contract for 10 business days after the receipt of theviatical settlement proceeds by the viator, as provided in G.S. 58‑58‑250(h).If the insured dies during the rescission period, the settlement contract shallbe deemed to have been rescinded, subject to repayment of all viaticalsettlement proceeds and any premiums, loans, and loan interest to the provideror purchaser.
(6) Funds will be sentto the viator within three business days after the provider has received theinsurer or group administrator's acknowledgment that ownership of the policy orinterest in the certificate has been transferred and the beneficiary has beendesignated.
(7) Entering into acontract may cause other rights or benefits, including conversion rights andwaiver of premium benefits that may exist under the policy, to be forfeited bythe viator. Assistance should be sought from a financial adviser.
(8) Disclosure to aviator shall include distribution of a brochure describing the process ofviatical settlements. The NAIC's form for the brochure shall be used unless theCommissioner develops one.
(9) The disclosuredocument shall contain the following language: "All medical, financial, orpersonal information solicited or obtained by a provider or broker about aninsured, including the insured's identity or the identity of family members, aspouse or a significant other may be disclosed as necessary to effect theviatical settlement between the viator and the provider. If you are asked toprovide this information, you will be asked to consent to the disclosure. Theinformation may be provided to someone who buys the policy or provides fundsfor the purchase. You may be asked to renew your permission to shareinformation every two years.
(10) The insured may becontacted by either the provider or broker or its authorized representative forthe purpose of determining the insured's health status. This contact is limitedto once every three months if the insured has a life expectancy of more thanone year, and no more than once per month if the insured has a life expectancyof one year or less.
(b) A provider shallprovide the viator with at least the following disclosures no later than thedate the contract is signed by all parties. The disclosures shall beconspicuously displayed in the contract or in a separate document signed by theviator and the provider or broker, and provide the following information:
(1) State theaffiliation, if any, between the provider and the issuer of the insurancepolicy to be viaticated.
(2) The document shallinclude the name, address, and telephone number of the provider.
(3) A broker shalldisclose to a prospective viator the amount and method of calculating thebroker's compensation. The term "compensation" includes anything ofvalue paid or given to a broker for the placement of a policy.
(4) If an insurancepolicy to be viaticated has been issued as a joint policy or involves familyriders or any coverage of a life other than the insured under the policy to beviaticated, the viator shall be informed of the possible loss of coverage onthe other lives under the policy and shall be advised to consult with his orher insurance producer or the insurer issuing the policy for advice on theproposed viatical settlement.
(5) State the dollaramount of the current death benefit payable to the provider under the policy.If known, the provider shall also disclose the availability of any additionalguaranteed insurance benefits, the dollar amount of any accidental death anddismemberment benefits under the policy, and the provider's interest in thosebenefits.
(6) State the name,business address, and telephone number of the independent third‑partyescrow agent and the fact that the viator or owner may inspect or receivecopies of the relevant escrow or trust agreements or documents.
(c) If the providertransfers ownership or changes the beneficiary of the insurance policy, theprovider shall communicate the change in ownership or beneficiary to theinsured within 20 days after the change. (2001‑436, s. 3.)
