A. Before asking a viator or insured to sign any document, a licensee underthis chapter shall provide the respective viator or insured, or both, with acopy of the disclosure document described in this subsection. The viaticalsettlement provider or viatical settlement broker shall provide the viatorwith an additional copy of the disclosures, with the application, no laterthan the time the application for the viatical settlement contract is signedby all parties. The disclosures shall be provided in a separate document thatis signed by the viator and the viatical settlement provider or viaticalsettlement broker, and shall provide the following information:
1. There are possible alternatives to viatical settlement contracts includingany accelerated death benefits or policy loans offered under the viator'slife insurance policy.
2. Some or all of the proceeds of the viatical settlement may be taxableunder federal income tax and state franchise and income taxes, and assistanceshould be sought from a professional tax advisor.
3. Proceeds of the viatical settlement could be subject to the claims ofcreditors.
4. Receipt of the proceeds of a viatical settlement may adversely affect theviator's eligibility for Medicaid or other government benefits orentitlements, and advice should be obtained from the appropriate governmentagencies.
5. The viator has the right to rescind a viatical settlement contract for 15calendar days after the receipt of the viatical settlement proceeds by theviator, as provided in subsection C of § 38.2-6008. If the insured diesduring the rescission period, the settlement contract shall be deemed to havebeen rescinded, subject to repayment of all viatical settlement proceeds andany premiums, loans, and loan interest to the viatical settlement provider orviatical settlement purchaser.
6. Funds will be sent to the viator within three business days after theviatical settlement provider has received the insurer's or groupadministrator's acknowledgment that ownership of the policy or interest inthe certificate has been transferred and the beneficiary has been designated.
7. Entering into a viatical settlement contract may cause other rights orbenefits, including conversion rights and waiver of premium benefits that mayexist under the policy or certificate, to be forfeited by the viator.Assistance should be sought from a financial adviser.
8. Disclosure to a viator shall include distribution of a brochure describingthe process of viatical settlements. The NAIC's form for the brochure shallbe used unless one is developed by the Commission.
9. The disclosure document shall contain the following language: "Allmedical, financial, or personal information solicited or obtained by aviatical settlement provider or viatical settlement broker about an insured,including the insured's identity or the identity of family members, a spouse,or a significant other may be disclosed as necessary to effect the viaticalsettlement between the viator and the viatical settlement provider. If youare asked to provide this information, you will be asked to consent to thedisclosure. The information may be provided to someone who buys the policy orprovides funds for the purchase. You may be asked to renew your permission toshare information every two years."
10. The insured may be contacted by either the viatical settlement provideror broker or its authorized representative for the purpose of determining theinsured's health status. This contact is limited to once every three monthsif the insured has a life expectancy of more than one year, and no more thanonce per month if the insured has a life expectancy of one year or less.
B. A viatical settlement provider shall provide the viator with at least thefollowing disclosures no later than the date the viatical settlement contractis signed by all parties. The disclosures shall be conspicuously displayed inthe viatical settlement contract or in a separate document signed by theviator and the viatical settlement provider or viatical settlement broker,and provide the following information:
1. The affiliation, if any, between the viatical settlement provider and theissuer of the insurance policy to be viaticated;
2. The name, address, and telephone number of the viatical settlementprovider;
3. The dollar amount of the current death benefit payable to the viaticalsettlement provider under the policy or certificate. If known, the viaticalsettlement provider shall also disclose the availability of any additionalguaranteed insurance benefits, the dollar amount of any accidental death anddismemberment benefits under the policy or certificate, and the viaticalsettlement provider's interest in those benefits;
4. State the name, business address, and telephone number of the independentthird party escrow agent, and the fact that the viator or owner may inspector receive copies of the relevant escrow or trust agreements or documents; and
5. If an insurance policy to be viaticated has been issued as a joint policyor involves family riders or any coverage of a life other than the insuredunder the policy to be viaticated, the viator shall be informed of thepossible loss of coverage on the other lives under the policy and shall beadvised to consult with his insurance producer or the insurer issuing thepolicy for advice on the proposed viatical settlement.
C. If the provider transfers ownership or changes the beneficiary of theinsurance policy, the provider shall communicate the change in ownership orbeneficiary to the insured within 20 days after the change.
A. Before asking a viator or insured to sign any document, a licensee underthis chapter shall provide the respective viator or insured, or both, with acopy of the disclosure document described in this subsection. The viaticalsettlement provider or viatical settlement broker shall provide the viatorwith an additional copy of the disclosures, with the application, no laterthan the time the application for the viatical settlement contract is signedby all parties. The disclosures shall be provided in a separate document thatis signed by the viator and the viatical settlement provider or viaticalsettlement broker, and shall provide the following information:
1. There are possible alternatives to viatical settlement contracts includingany accelerated death benefits or policy loans offered under the viator'slife insurance policy.
2. Some or all of the proceeds of the viatical settlement may be taxableunder federal income tax and state franchise and income taxes, and assistanceshould be sought from a professional tax advisor.
3. Proceeds of the viatical settlement could be subject to the claims ofcreditors.
4. Receipt of the proceeds of a viatical settlement may adversely affect theviator's eligibility for Medicaid or other government benefits orentitlements, and advice should be obtained from the appropriate governmentagencies.
5. The viator has the right to rescind a viatical settlement contract for 15calendar days after the receipt of the viatical settlement proceeds by theviator, as provided in subsection C of § 38.2-6008. If the insured diesduring the rescission period, the settlement contract shall be deemed to havebeen rescinded, subject to repayment of all viatical settlement proceeds andany premiums, loans, and loan interest to the viatical settlement provider orviatical settlement purchaser.
6. Funds will be sent to the viator within three business days after theviatical settlement provider has received the insurer's or groupadministrator's acknowledgment that ownership of the policy or interest inthe certificate has been transferred and the beneficiary has been designated.
7. Entering into a viatical settlement contract may cause other rights orbenefits, including conversion rights and waiver of premium benefits that mayexist under the policy or certificate, to be forfeited by the viator.Assistance should be sought from a financial adviser.
8. Disclosure to a viator shall include distribution of a brochure describingthe process of viatical settlements. The NAIC's form for the brochure shallbe used unless one is developed by the Commission.
9. The disclosure document shall contain the following language: "Allmedical, financial, or personal information solicited or obtained by aviatical settlement provider or viatical settlement broker about an insured,including the insured's identity or the identity of family members, a spouse,or a significant other may be disclosed as necessary to effect the viaticalsettlement between the viator and the viatical settlement provider. If youare asked to provide this information, you will be asked to consent to thedisclosure. The information may be provided to someone who buys the policy orprovides funds for the purchase. You may be asked to renew your permission toshare information every two years."
10. The insured may be contacted by either the viatical settlement provideror broker or its authorized representative for the purpose of determining theinsured's health status. This contact is limited to once every three monthsif the insured has a life expectancy of more than one year, and no more thanonce per month if the insured has a life expectancy of one year or less.
B. A viatical settlement provider shall provide the viator with at least thefollowing disclosures no later than the date the viatical settlement contractis signed by all parties. The disclosures shall be conspicuously displayed inthe viatical settlement contract or in a separate document signed by theviator and the viatical settlement provider or viatical settlement broker,and provide the following information:
1. The affiliation, if any, between the viatical settlement provider and theissuer of the insurance policy to be viaticated;
2. The name, address, and telephone number of the viatical settlementprovider;
3. The dollar amount of the current death benefit payable to the viaticalsettlement provider under the policy or certificate. If known, the viaticalsettlement provider shall also disclose the availability of any additionalguaranteed insurance benefits, the dollar amount of any accidental death anddismemberment benefits under the policy or certificate, and the viaticalsettlement provider's interest in those benefits;
4. State the name, business address, and telephone number of the independentthird party escrow agent, and the fact that the viator or owner may inspector receive copies of the relevant escrow or trust agreements or documents; and
5. If an insurance policy to be viaticated has been issued as a joint policyor involves family riders or any coverage of a life other than the insuredunder the policy to be viaticated, the viator shall be informed of thepossible loss of coverage on the other lives under the policy and shall beadvised to consult with his insurance producer or the insurer issuing thepolicy for advice on the proposed viatical settlement.
C. If the provider transfers ownership or changes the beneficiary of theinsurance policy, the provider shall communicate the change in ownership orbeneficiary to the insured within 20 days after the change.
A. Before asking a viator or insured to sign any document, a licensee underthis chapter shall provide the respective viator or insured, or both, with acopy of the disclosure document described in this subsection. The viaticalsettlement provider or viatical settlement broker shall provide the viatorwith an additional copy of the disclosures, with the application, no laterthan the time the application for the viatical settlement contract is signedby all parties. The disclosures shall be provided in a separate document thatis signed by the viator and the viatical settlement provider or viaticalsettlement broker, and shall provide the following information:
1. There are possible alternatives to viatical settlement contracts includingany accelerated death benefits or policy loans offered under the viator'slife insurance policy.
2. Some or all of the proceeds of the viatical settlement may be taxableunder federal income tax and state franchise and income taxes, and assistanceshould be sought from a professional tax advisor.
3. Proceeds of the viatical settlement could be subject to the claims ofcreditors.
4. Receipt of the proceeds of a viatical settlement may adversely affect theviator's eligibility for Medicaid or other government benefits orentitlements, and advice should be obtained from the appropriate governmentagencies.
5. The viator has the right to rescind a viatical settlement contract for 15calendar days after the receipt of the viatical settlement proceeds by theviator, as provided in subsection C of § 38.2-6008. If the insured diesduring the rescission period, the settlement contract shall be deemed to havebeen rescinded, subject to repayment of all viatical settlement proceeds andany premiums, loans, and loan interest to the viatical settlement provider orviatical settlement purchaser.
6. Funds will be sent to the viator within three business days after theviatical settlement provider has received the insurer's or groupadministrator's acknowledgment that ownership of the policy or interest inthe certificate has been transferred and the beneficiary has been designated.
7. Entering into a viatical settlement contract may cause other rights orbenefits, including conversion rights and waiver of premium benefits that mayexist under the policy or certificate, to be forfeited by the viator.Assistance should be sought from a financial adviser.
8. Disclosure to a viator shall include distribution of a brochure describingthe process of viatical settlements. The NAIC's form for the brochure shallbe used unless one is developed by the Commission.
9. The disclosure document shall contain the following language: "Allmedical, financial, or personal information solicited or obtained by aviatical settlement provider or viatical settlement broker about an insured,including the insured's identity or the identity of family members, a spouse,or a significant other may be disclosed as necessary to effect the viaticalsettlement between the viator and the viatical settlement provider. If youare asked to provide this information, you will be asked to consent to thedisclosure. The information may be provided to someone who buys the policy orprovides funds for the purchase. You may be asked to renew your permission toshare information every two years."
10. The insured may be contacted by either the viatical settlement provideror broker or its authorized representative for the purpose of determining theinsured's health status. This contact is limited to once every three monthsif the insured has a life expectancy of more than one year, and no more thanonce per month if the insured has a life expectancy of one year or less.
B. A viatical settlement provider shall provide the viator with at least thefollowing disclosures no later than the date the viatical settlement contractis signed by all parties. The disclosures shall be conspicuously displayed inthe viatical settlement contract or in a separate document signed by theviator and the viatical settlement provider or viatical settlement broker,and provide the following information:
1. The affiliation, if any, between the viatical settlement provider and theissuer of the insurance policy to be viaticated;
2. The name, address, and telephone number of the viatical settlementprovider;
3. The dollar amount of the current death benefit payable to the viaticalsettlement provider under the policy or certificate. If known, the viaticalsettlement provider shall also disclose the availability of any additionalguaranteed insurance benefits, the dollar amount of any accidental death anddismemberment benefits under the policy or certificate, and the viaticalsettlement provider's interest in those benefits;
4. State the name, business address, and telephone number of the independentthird party escrow agent, and the fact that the viator or owner may inspector receive copies of the relevant escrow or trust agreements or documents; and
5. If an insurance policy to be viaticated has been issued as a joint policyor involves family riders or any coverage of a life other than the insuredunder the policy to be viaticated, the viator shall be informed of thepossible loss of coverage on the other lives under the policy and shall beadvised to consult with his insurance producer or the insurer issuing thepolicy for advice on the proposed viatical settlement.
C. If the provider transfers ownership or changes the beneficiary of theinsurance policy, the provider shall communicate the change in ownership orbeneficiary to the insured within 20 days after the change.
