HB 1379-4_ Filed 01/28/2008, 07:32 Ripley
Text Box
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
[
HOUSE MOTION ____
]
MR. SPEAKER:
I move that House Bill 1379 be amended to read as follows:
SOURCE: Page 7, line 38; (08)MO137905.7. -->
Page 7, line 38, delete "IC 27-18" and insert " IC 27-8-19.8".
Page 8, delete lines 7 through 42, begin a new paragraph and insert:
SOURCE: IC 27-8-19.8-1.5; (08)MO137905.2. -->
"SECTION 2. IC 27-8-19.8-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 1.5. As used in this chapter,
"business of viatical settlements" means any of the following
activities related to a viatical settlement contract:
(1) Offering to enter into a viatical settlement contract.
(2) Solicitation.
(3) Negotiation.
(4) Procurance.
(5) Effectuation.
(6) Monitoring.
(7) Tracking.
SOURCE: IC 27-8-19.8-2.2; (08)MO137905.3. -->
SECTION 3. IC 27-8-19.8-2.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 2.2. As used in this chapter,
"financing entity" means an underwriter, placement agent, lender,
purchaser of securities, viatical settlement purchaser, credit
enhancer, or another entity that has a:
(1) direct ownership interest in a viaticated policy;
(2) principal function related to a viatical settlement contract
of providing funds to:
(A) effect the viatical settlement contract; or
(B) purchase a viaticated policy; and
(3) written agreement with at least one (1) viatical settlement
provider to finance the acquisition of viatical settlement
contracts.
The term does not include a nonaccredited investor or viatical
settlement purchaser.
SOURCE: IC 27-8-19.8-2.3; (08)MO137905.4. -->
SECTION 4. IC 27-8-19.8-2.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 2.3. As used in this chapter,
"financing transaction" means a transaction in which a viatical
settlement provider obtains financing from a financing entity,
including secured or unsecured financing, a securitization
transaction, or a securities offering that is registered or exempt
from registration under state and federal securities law.
SOURCE: IC 27-8-19.8-2.5; (08)MO137905.5. -->
SECTION 5. IC 27-8-19.8-2.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]:
Sec. 2.5. As used in this chapter,
"fraudulent viatical settlement act" includes the following:
(1) Knowingly or with intent to defraud and for the purpose
of depriving another of property or for pecuniary gain,
engaging in or permitting one's employees or agents to engage
in the following:
(A) Presenting, causing to be presented, or preparing with
knowledge or belief that it will be presented to or by a
viatical settlement provider, viatical settlement broker,
viatical settlement purchaser, financing entity, insurer,
insurance producer, or another person, any false material
information, or concealing material information, as part
of, in support of, or concerning a fact material to at least
one (1) of the following:
(i) An application for the issuance of a viatical settlement
contract or life insurance policy.
(ii) The underwriting of a viatical settlement contract or
life insurance policy.
(iii) A claim for payment or benefit under a viatical
settlement contract or life insurance policy.
(iv) Premiums paid on a life insurance policy.
(v) Payments and changes in ownership or beneficiary
made in accordance with the terms of a viatical
settlement contract or life insurance policy.
(vi) The reinstatement or conversion of a life insurance
policy.
(vii) The solicitation, offer, effectuation, or sale of a
viatical settlement contract or life insurance policy.
(viii) The issuance of written evidence of a viatical
settlement contract or life insurance policy.
(ix) An application for, the existence of, or payments
related to a loan that is secured directly or indirectly by
an interest in a life insurance policy.
(B) Employing a device, scheme, or artifice to defraud in
the business of viatical settlements.
(C) Failing to disclose to an insurer that requests the
disclosure that a prospective insured has undergone a life
expectancy evaluation by a person other than the insurer
or an authorized representative of the insurer in
connection with the issuance of a life insurance policy.
(D) In the solicitation, application, or issuance of a life
insurance policy, employing a device, scheme, or artifice in
violation of insurable interest law.
(2) In the furtherance of a fraud or to prevent the detection of
a fraud, knowingly or intentionally doing or permitting one's
employees or agents to do any of the following:
(A) Removing, concealing, altering, destroying, or
sequestering from the commissioner the assets or records
of a licensee or other person engaged in the business of
viatical settlements.
(B) Misrepresenting or concealing the financial condition
of a licensee, financing entity, insurer, or other person.
(C) Transacting the business of viatical settlements in
violation of laws requiring a license, certificate of
authority, or other legal authority for the transaction of
the business of viatical settlements.
(C) Filing with the commissioner or the chief insurance
regulatory official of another jurisdiction a document
containing false information or otherwise concealing
information about a material fact from the commissioner.
(D) Engaging in embezzlement, theft, misappropriation, or
conversion of money, funds, premiums, credits, or other
property of a viatical settlement provider, insurer, insured,
viator, owner, or another person engaged in the business
of viatical settlements or insurance.
(E) Entering into, brokering or otherwise dealing in a
viatical settlement contract, the subject of which is a life
insurance policy that was obtained by knowingly:
(i) presenting false information concerning a fact
material to the life insurance policy; or
(ii) concealing, for the purpose of misleading another
person, information concerning a fact material to the life
insurance policy;
with the intent to defraud the life insurance policy's issuer.
(F) Misrepresenting a life insurance policy's owner's
residency to be another jurisdiction for the purpose of
evading or avoiding regulation under this chapter.
(3) Knowingly or intentionally engaging in any practice or
plan that involves stranger originated life insurance.
(4) Attempting to commit, assisting, aiding, or abetting in the
commission of, or conspiring to commit an act or omission
described in this section.
SOURCE: IC 27-8-19.8-3; (08)MO137905.6. -->
SECTION 6. IC 27-8-19.8-3, AS AMENDED BY P.L.223-2005,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 3. As used in this chapter, "insured" refers to an
individual whose life is the subject of insurance under a life insurance
policy. or contract.
SOURCE: IC 27-8-19.8-3.3; (08)MO137905.7. -->
SECTION 7. IC 27-8-19.8-3.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 3.3. As used in this chapter,
"licensee" refers to a viatical settlement provider or a viatical
settlement broker that is licensed under this chapter.
SOURCE: IC 27-8-19.8-3.4; (08)MO137905.8. -->
SECTION 8. IC 27-8-19.8-3.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 3.4. As used in this chapter, "life
insurance policy" refers to an individual or group policy,
certificate, or contract of life insurance.
SOURCE: IC 27-8-19.8-3.6; (08)MO137905.9. -->
SECTION 9. IC 27-8-19.8-3.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 3.6. As used in this chapter,
"owner" means a person that:
(1) owns an individual life insurance policy; or
(2) is the certificate holder under a group life insurance
policy.
SOURCE: IC 27-8-19.8-5; (08)MO137905.10. -->
SECTION 10. IC 27-8-19.8-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 5. (a) As used in this
chapter, "viatical settlement provider" means a person, other than a
viator, that:
(1) enters into a viatical settlement contract with a viator; or
(2) obtains financing for the purchase, acquisition, transfer, or
other assignment of one (1) or more viatical settlement contracts,
viaticated policies, or interests therein, or otherwise sells, assigns,
transfers, pledges, hypothecates, or disposes of one (1) or more
viatical settlement contracts, viaticated policies, or interests
therein.
(b) The term does not include any of the following:
(1) A bank, savings bank, savings association, credit union, or
other licensed lending institution that takes an assignment of a life
insurance policy as collateral for a loan.
(2) The issuer of a life insurance policy that makes a policy loan,
permits surrender of the policy, or pays other policy benefits,
including accelerated benefits, in accordance with the terms of the
life insurance policy.
SOURCE: IC 27-8-19.8-6; (08)MO137905.11. -->
SECTION 11. IC 27-8-19.8-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6. (a) As used in this
chapter, "viatical settlement contract" means an a written agreement
for that:
(1) is entered into between a viatical settlement provider and
an owner; and
(2) establishes the terms under which the purchase, sale,
assignment, transfer, devise, or bequest of owner:
(A) receives payment of compensation that is:
(i) less than the expected death benefit of the owner's life
insurance policy; and
(ii) more than the cash surrender value or accelerated
death benefit of the owner's life insurance policy at the
time the application for the written agreement is made;
and
(B) sells, assigns, transfers, devises, or bequeaths the death
benefit or a portion of the death benefit or ownership of a the
life insurance policy or contract in exchange for consideration
that is less than the expected death benefit of the life insurance
policy. or contract. the compensation described in clause
(A).
(b) The term includes the following:
(1) A written agreement for a loan or other lending
transaction that is secured primarily by a life insurance
policy.
(2) A premium finance loan made for a life insurance policy
on or before the date of issuance of the life insurance policy in
a situation in which:
(A) the premium finance loan proceeds are not used solely
to pay:
(i) premiums for the life insurance policy; or
(ii) costs or expenses incurred by the lender or borrower
in connection with the premium finance loan;
(B) the owner receives on the date of the premium finance
loan a guarantee of the future viatical settlement value of
the life insurance policy; or
(C) the owner agrees on the date of the premium finance
loan to sell the life insurance policy or any part of the life
insurance policy's death benefit on any date after the date
of issuance of the life insurance policy.
(3) A transfer, for compensation or value, of ownership or
beneficial interest in a trust or other entity that:
(A) owns a life insurance policy; and
(B) was formed or availed of for the principal purpose of
acquiring at least one (1) life insurance policy.
(c) The term does not include the following:
(1) A policy loan by an insurer under the terms of:
(A) a life insurance policy including a loan secured by the cash
value of a or rider; or
(B) accelerated death benefit provisions contained in a life
insurance policy or rider.
(2) An agreement with A premium finance loan or another loan
made by a bank savings bank, savings and loan association,
credit union, or other licensed lending financial institution that
takes an assignment of a life insurance policy as collateral for a
loan. if:
(A) a default on the loan; or
(B) a transfer of the life insurance policy in connection
with a default on the loan;
does not occur in connection with an agreement or
understanding with another person for the purpose of evading
regulation under this chapter.
(3) The provision of accelerated death benefits by an insurer to an
insured under the provisions of a life insurance contract.
(4) Agreements between an insurer and a reinsurer.
(5) An agreement by a person who enters into not more than one
(1) such agreement in any five (5) year period to purchase a life
insurance policy or contract for the transfer of a life insurance
policy for a value that is less than the expected death benefit.
(3) A collateral assignment of a life insurance policy by the
owner.
(4) A loan that:
(A) is made by a lender;
(B) does not violate Indiana law related to insurance
premium finance loans; and
(C) is not described in subsection (a) or (b).
(5) An agreement in which all parties to the agreement:
(A) are closely related to the insured by blood or law;
(B) have a lawful substantial economic interest in the
continued life, health, and bodily safety of the insured; or
(C) are trusts established primarily for the benefit of the
trusts.
(6) A designation, consent, or agreement by an insured who is
an employee of an employer in connection with the purchase
by:
(A) the employer; or
(B) a trust established by the employer;
of life insurance under which the employee is an insured.
(7) A bona fide business succession planning arrangement:
(A) between:
(i) at least two (2) shareholders in a corporation; or
(ii) a corporation and at least one (1) of the corporation's
shareholders or at least one (1) trust established by the
corporation's shareholders;
(B) between:
(i) at least two (2) partners in a partnership; or
(ii) a partnership and at least one (1) of the partnership's
partners or at least one (1) trust established by the
partnership's partners; or
(C) between:
(i) at least two (2) members in a limited liability
company; or
(ii) a limited liability company and at least one (1) of the
limited liability company's members or at least one (1)
trust established by the limited liability company's
members.
(8) An agreement entered into by:
(A) a service recipient, or a trust established by a service
recipient; and
(B) a service provider, or a trust established by a service
provider, who performs significant services for the service
recipient's trade or business.
(9) Another contract, transaction, or arrangement exempted
from the definition of "viatical settlement contract" by the
commissioner based on a determination that the contract,
transaction, or arrangement is not intended to be regulated
under this chapter.
SOURCE: IC 27-8-19.8-6.3; (08)MO137905.12. -->
SECTION 12. IC 27-8-19.8-6.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 6.3. As used in this chapter,
"viatical settlement purchaser" means a person that provides
consideration for:
(1) a beneficial interest in a trust that is vested with; or
(2) the assignment, transfer, or sale of;
an ownership or other interest in a viaticated policy.
SOURCE: IC 27-8-19.8-6.5; (08)MO137905.13. -->
SECTION 13. IC 27-8-19.8-6.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6.5. As used in this
chapter, "viaticated policy" means a life insurance policy or certificate
that has been acquired by a viatical settlement provider under a viatical
settlement contract.
SOURCE: IC 27-8-19.8-7.4; (08)MO137905.14. -->
SECTION 14. IC 27-8-19.8-7.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 7.4. As used in this chapter,
"premium finance loan" means a loan that is:
(1) made primarily for the purpose of making premium
payments on a life insurance policy; and
(2) secured by an interest in the life insurance policy.
SOURCE: IC 27-8-19.8-7.6; (08)MO137905.15. -->
SECTION 15. IC 27-8-19.8-7.6 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]:
Sec. 7.6. As used in this chapter,
"related provider trust" means a trust that:
(1) is established by a viatical settlement provider or a
financing entity for the sole purpose of holding the ownership
or beneficial interest in viaticated policies in connection with
a financing transaction; and
(2) is evidenced by a written agreement between the trust and
the viatical settlement provider described in subdivision (1)
under which:
(A) the viatical settlement provider is responsible for
ensuring compliance with all statutory and regulatory
requirements; and
(B) the trust agrees to make all records and files related to
viatical settlement transactions available to the
commissioner as if the records and files were maintained
directly by the viatical settlement provider.
SOURCE: IC 27-8-19.8-7.7; (08)MO137905.16. -->
SECTION 16. IC 27-8-19.8-7.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 7.7. As used in this chapter,
"special purpose entity" means a corporation, partnership, trust,
limited liability company, or another legal entity formed solely to
provide direct or indirect access to institutional capital markets:
(1) for a financing entity or viatical settlement provider; or
(2) in connection with a transaction in which the securities in
the corporation, partnership, trust, limited liability company,
or other entity:
(A) are acquired by a viator or by qualified institutional
buyers (as defined under the federal Securities Act of 1933,
as amended (17 CFR 144)); or
(B) pay a fixed rate of return commensurate with
established asset-backed institutional capital markets.
SOURCE: IC 27-8-19.8-7.8; (08)MO137905.17. -->
SECTION 17. IC 27-8-19.8-7.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1 2008]: Sec. 7.8. (a) As used in this chapter,
"stranger originated life insurance" means a practice or plan to
initiate a life insurance policy for the benefit of a third party
investor who, at the time the life insurance policy is originated, has
no insurable interest in the insured.
(b) The term includes the following:
(1) An arrangement under which, at the time of life insurance
policy inception:
(A) a life insurance policy is purchased with resources or
guarantees from or through a person that is not legally
permitted to initiate the life insurance policy; and
(B) a written or verbal arrangement or agreement is made
to transfer the ownership of the life insurance policy or
policy benefits to a third party.
(2) A trust that is:
(A) created to give an appearance of the existence of an
insurable interest; and
(B) used to initiate a life insurance policy for an investor.
(c) The term does not include an arrangement described in
section 6(c) of this chapter.
SOURCE: IC 27-8-19.8-8; (08)MO137905.18. -->
SECTION 18. IC 27-8-19.8-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 8. As used in this
chapter, "viator" refers to the owner of a life insurance policy or a
certificate holder under a group policy that insures the life of an insured
who enters or seeks to enter into a viatical settlement contract.
SOURCE: IC 27-8-19.8-9.2; (08)MO137905.19. -->
SECTION 19. IC 27-8-19.8-9.2, AS ADDED BY P.L.223-2005,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 9.2. An insurance producer that:
(1) is licensed under IC 27-1-15.6; and
(2) sells a life insurance policy or contract that, less than two (2)
years after the insurance producer sells the life insurance policy,
or contract, is the subject of a viatical settlement contract;
shall not accept a commission or other remuneration in connection with
the viatical settlement contract.
SOURCE: IC 27-8-19.8-17; (08)MO137905.20. -->
SECTION 20. IC 27-8-19.8-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 17. (a) A viatical
settlement provider shall,
not later than March 1 of each year, file
with the department an annual report containing information
concerning the immediately preceding calendar year as prescribed
in rules adopted by the department under IC 4-22-2.
(b) The rules adopted by the department under subsection (a) shall set
the date by which annual reports must be submitted.
(b) This subsection applies to viatical settlement contracts
involving a life insurance policy issued less than five (5) years
before the viatical settlement contract is entered into. An annual
report filed under subsection (a) must include at least the
following:
(1) The total number of viatical settlement contracts entered
into by the viatical settlement provider.
(2) The aggregate face amount of policies that were the
subject of viatical settlement contracts.
(3) The aggregate amount of proceeds of viatical settlement
contracts.
(4) Aggregate information described in subdivisions (1)
through (3) for each policy issue year of life insurance policies
that were the subject of viatical settlement contracts.
(5) The names of the:
(A) insurers that issued life insurance policies that were the
subject of viatical settlement contracts; and
(B) viatical settlement brokers that represented the viators
in the viatical settlement contracts.
(c) The information required under subsection (b) is limited
only to transactions in which the insured is a resident of Indiana.
(d) Individual transaction data regarding the business of viatical
settlements or data that could compromise the privacy of personal,
financial, and health information of a viator or insured are
confidential.
(e) Except as otherwise allowed or required by law, a viatical
settlement provider, viatical settlement broker, insurer, insurance
producer, information bureau, rating agency or company, or any
other person with actual knowledge of an insured's identity shall
not disclose the identity of the insured or information from which
there is a reasonable basis to believe could be used to identify the
insured or the insured's financial or medical information to
another person unless:
(1) the disclosure is necessary to effect a viatical settlement
between the viator and a viatical settlement provider, and the
viator and insured have provided prior written consent to the
disclosure;
(2) the disclosure is necessary to effectuate the sale of a
viatical settlement contract or an interest in a viatical
settlement contract as an investment, the sale is conducted in
accordance with state and federal securities law, and the
viator and insured have provided prior written consent to the
disclosure;
(3) the information is provided in response to an investigation
or examination by the commissioner or another governmental
officer or agency;
(4) the disclosure is required under a term of or condition to
the transfer of a life insurance policy from one (1) viatical
settlement provider to another viatical settlement provider
and the receiving viatical settlement provider complies with
the confidentiality requirements of this section;
(5) the disclosure is necessary to allow the viatical settlement
provider, viatical settlement broker, or an authorized
representative of a viatical settlement provider or viatical
settlement broker that:
(A) does not have a financial interest in the viatical
settlement contract other than as a viatical settlement
provider, viatical settlement broker, financing entity,
related provider trust, or special purpose entity; and
(B) is required by the viatical settlement provider or
viatical settlement broker to agree in writing to adhere to
the privacy requirements of this chapter;
to make contacts for the purpose of determining health status;
or
(6) the disclosure is required for the purchase of stop loss
coverage or financial guaranty insurance.
(c) (f) A viatical settlement provider shall maintain records of each
viatical settlement at least five (5) years after the death of the insured.
SOURCE: IC 27-8-19.8-20.1; (08)MO137905.21. -->
SECTION 21. IC 27-8-19.8-20.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 20.1. (a) A person shall not issue,
solicit, market, or otherwise promote the purchase of a life
insurance policy for the purpose of or with an emphasis on making
the life insurance policy the subject of a viatical settlement
contract.
(b) A person shall not commit a fraudulent viatical settlement
act.
(c) A violation of this chapter is an unfair and deceptive act or
practice in the business of insurance under IC 27-4-1-4.
SOURCE: IC 27-8-19.8-21; (08)MO137905.22. -->
SECTION 22. IC 27-8-19.8-21, AS AMENDED BY P.L.223-2005,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 21. (a) A viatical settlement contract must
establish the terms under which the viatical settlement provider will
pay value, in return for the viator's assignment, bequest, devise, sale,
or transfer of the death benefit, certificate, or ownership of the life
insurance policy to the viatical settlement provider.
(b) A viatical settlement contract must provide for the unconditional
rescission of the contract by the viator for the longer of the following:
(1) the period ending not more than fifteen (15) days after the
receipt of the viatical settlement proceeds by the viator; or
(2) the period ending not more than thirty (30) days after
execution of the contract.
(c) A viatical settlement contract is rescinded if the insured dies
during the rescission period, subject to repayment to the viatical
settlement provider of all proceeds and any premiums, loans, and loan
interest that have been paid by the viatical settlement provider.
SOURCE: IC 27-8-19.8-23; (08)MO137905.23. -->
SECTION 23. IC 27-8-19.8-23, AS AMENDED BY P.L.223-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 23. (a) A viatical settlement provider or viatical
settlement broker shall, not later than the date of application, provide
to a viator a brochure approved by the commissioner and describing the
viatical settlement process. If a brochure describes only a viatical
settlement contract in which the insured does not have a catastrophic
or life threatening illness or condition, the brochure may use the term
"life settlement" in place of the term "viatical settlement".
(b) A viatical settlement provider or viatical settlement broker shall,
in a separate document that is signed by the viator and the viatical
settlement provider or viatical settlement broker, disclose the following
information to the viator not later than the date of application:
(1) Possible alternatives to viatical settlement contracts, including
accelerated benefits or policy loans offered by the issuer of the
life insurance policy.
(2) Federal and state tax consequences that may result from
entering into a viatical settlement contract, and that the viator
should seek assistance from a professional tax advisor.
(3) Possible:
(A) adverse effect on eligibility for; or
(B) interruption of assistance provided by;
medical or public assistance programs as a consequence of
entering into a viatical settlement contract, and that the viator
should seek advice from the appropriate government agencies.
(4) The viator's right to rescind a viatical settlement contract as
provided in section 21 of this chapter.
(5) The amount of any fees paid by a viatical settlement provider
to a viatical settlement broker.
(6) A statement that proceeds of the viatical settlement could be
subject to claims of creditors.
(7) A statement that:
(A) entering into a viatical settlement contract may cause other
rights or benefits under the life insurance policy, including
conversion rights, waiver of premium benefits, family riders,
or coverage of a life other than the insured, to be forfeited by
the viator; and
(B) the viator should seek advice from a financial advisor.
(8) The procedure for contacts with the insured.
(9) That the proceeds of the viatical settlement will be transferred
to the viator as provided in section 24.2 of this chapter.
(10) A statement containing the following language:
"All medical, financial, or personal information solicited or
obtained by a viatical 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 viatical settlement
between the viator and the viatical settlement provider. If you
are asked to provide this information, you will be asked to
consent to the disclosure. The information may be provided to
someone who buys the policy or provides funds for the
purchase. You may be asked to renew your permission to share
information every two years.".
(11) That the insured may be contacted by the viatical settlement
provider or viatical settlement broker to determine the health
status of the insured in accordance with section 24.9 of this
chapter.
(c) The viatical settlement provider shall disclose the following
information to the viator, conspicuously displayed in the viatical
settlement contract or in a separate document signed by the viatical
settlement provider and the viator, before a viatical settlement contract
is signed:
(1) Any affiliation between the viatical settlement provider and
the insurer that issued the life insurance policy or certificate that
is the subject of the viatical settlement contract.
(2) The name, address, and telephone number of the viatical
settlement provider.
(3) If the life insurance policy or certificate that is the subject of
the viatical settlement contract was issued as a joint policy or
includes family riders or any coverage of an individual other than
the insured:
(A) the possible loss of coverage of the other individuals under
the life insurance policy; or certificate; and
(B) that the viator should consult with the viator's insurance
producer or the insurer that issued the life insurance policy or
certificate for advice concerning the proposed viatical
settlement contract.
(4) The:
(A) dollar amount of the current death benefit payable to the
viatical settlement provider; and
(B) if known, the:
(i) availability of any additional guaranteed insurance
benefits;
(ii) dollar amount of any accidental death and
dismemberment benefits; and
(iii) viatical settlement provider's interest in the benefits
described in items (i) and (ii);
under the life insurance policy. or certificate.
(5) The:
(A) name, business address, and telephone number of the
trustee or escrow agent described in section 24.2 of this
chapter; and
(B) right of the viator or insured to inspect or receive copies of
the relevant escrow or trust agreements or documents.
(d) A viatical settlement broker shall disclose to the viator,
conspicuously displayed in the viatical settlement contract or in a
separate document signed by the viatical settlement broker and the
viator before a viatical settlement contract is signed, the amount and
method of calculation of the viatical settlement broker's compensation.
(e) If a viatical settlement provider transfers ownership or changes
the beneficiary of a viaticated policy, the viatical settlement provider
shall, not more than twenty (20) days after the transfer or change
occurs, inform the insured of the transfer or change.
SOURCE: IC 27-8-19.8-24.2; (08)MO137905.24. -->
SECTION 24. IC 27-8-19.8-24.2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 24.2. (a) Immediately
upon a viatical settlement provider's receipt of a signed viatical
settlement contract, the viatical settlement provider shall pay the
proceeds of the viatical settlement to a trust or escrow account in a
state or federally chartered financial institution whose deposits are
insured by the Federal Deposit Insurance Corporation. The account
shall be managed by a trustee or escrow agent independent of the
parties to the contract.
(b) Within two (2) business days after the viatical settlement
provider's receipt of the insurer's or group administrator's
acknowledgment that ownership of the life insurance policy or interest
in the certificate has been transferred and the beneficiary has been
designated according to the viatical settlement contract, the trustee or
escrow agent shall transfer the proceeds to the viator.".
Delete pages 9 through 58.
(Reference is to HB 1379 as printed January 25, 2008.)
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MO137905/DI 97 2008