§ 688C.250 — Disclosures required to be furnished by provider or broker of viatical settlements to viator upon or before execution of application for settlement

Nevada § 688C.250

• Jurisdiction: Nevada
• Title 57: INSURANCE
• Ch. 688C: Viatical

Text

1. With each application for a viatical settlement, a provider or broker of viatical settlements shall furnish to the viator at least the following disclosures, in at least 12-point type, no later than the time the application for the settlement is signed by all the parties, in a separate document signed by the viator and the provider or broker:
(a) A broker of viatical settlements represents the viator exclusively, and not the insurer or the provider of viatical settlements, and owes a fiduciary duty to the viator, including a duty to act according to the instructions of the viator and in the best interest of the viator.
(b) The possible alternatives to viatical settlement, including any accelerated death benefits or policy loans offered under the viator’s life insurance policy.
(c) Some or all of the proceeds of the viatical settlement may be taxable under the federal income tax or a state franchise or income tax, and assistance should be sought from a professional tax adviser.
(d) Proceeds of the viatical settlement may be subject to the claims of creditors.
(e) Receipt of proceeds of a viatical settlement may adversely affect the viator’s eligibility for Medicaid or other governmental benefits, and advice should be sought from the appropriate governmental agencies.
(f) The viator has a right to rescind a viatical settlement within the rescission period, as provided in NRS 688C.300 , and if the insured dies during the rescission period, the settlement is deemed rescinded and all proceeds must be repaid to the provider within 60 days after the death of the insured. Rescission, if exercised by the viator, is effective only if the viator:
(1) Gives notice of the rescission to the provider or broker of viatical settlements; and
(2) Repays to the provider of viatical settlements all proceeds and any premiums, loans and loan interest paid on account of the viatical settlement or on behalf of the provider of viatical settlements,
Ê within the rescission period.
(g) Money will be sent to the viator within 3 business days after the provider has received the insurer’s or group administrator’s written acknowledgment that ownership of or interest in the policy has been transferred and the beneficiary has been designated.
(h) Entering into a viatical settlement may cause other rights, including conversion and waiver of premium, that may exist under the policy to be forfeited by the viator, and assistance should be sought from a financial adviser.
(i) A brochure is provided which describes the process of viatical settlement, in the form prescribed by the National Association of Insurance Commissioners unless the Commissioner prescribes a different form.
(j) The name and address of the person responsible for monitoring the condition of the insured, the frequency of monitoring, the means of determining date of death and the means and time by which the date of death will be transmitted to the purchaser.
2. The document in which the disclosures required by paragraphs (a) to (j), inclusive, of subsection 1 are made must also contain the following:
All medical, financial and personal information solicited or obtained by a provider or broker of viatical settlements about an insured, including the insured’s identity and that of members of the insured’s family, a spouse or other relationship, may be disclosed as necessary to effect the viatical settlement between the viator and the provider. If you are asked to provide this information, you will be asked to consent to the disclosure. Failure to consent may affect your ability to viaticate your policy. The information may be furnished to someone who buys the policy or provides money for the purchase.

Legislative History

(Added to NRS by 2001, 2171 ; A 2009, 1796 )