§ 27-8-19.8-23 — Required disclosures to viator; information to insured

Indiana § 27-8-19.8-23

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 8: LIFE, ACCIDENT, AND HEALTH
• Ch. 19.8: Viatical Settlements

Text

(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 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 policy or certificate; and
(B) that the viator should consult with the viator's insurance
producer or the insurer that issued the 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 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.

Legislative History

As added by P.L.130-1994, SEC.47 and P.L.116-1994, SEC.70. Amended by P.L.32-1998, SEC.24; P.L.223-2005, SEC.7.