§ 36-4055.11 — Fraudulent viatical settlement acts - Filing of

Oklahoma § 36-4055.11

• Jurisdiction: Oklahoma
• Title 36: Insurance

Text

advertising - "Free" insurance - Additional consideration - Emphasis on settling policy prohibited. A. With respect to any viatical settlement contract or insurance policy, no viatical settlement broker knowingly shall solicit an offer from, effectuate a viatical settlement with or make a sale to any viatical settlement provider, viatical settlement purchaser, financing entity or related provider trust that is controlling, controlled by, or under common control with such viatical settlement broker unless the relationship is disclosed to the viator. B. With respect to any viatical settlement contract or insurance policy, no viatical settlement provider knowingly may enter into a viatical settlement contract with a viator, if, in connection with such viatical settlement contract, anything of value will be paid to a viatical settlement broker that is controlling, controlled by, or under common control with such viatical settlement provider or the viatical settlement purchaser, financing entity or related provider trust that is involved in such viatical settlement contract unless the relationship is disclosed to the viator. C. A violation of subsection A or B of this section shall be deemed a fraudulent viatical settlement act. D. No viatical settlement provider shall enter into a viatical settlement contract unless the viatical settlement promotional, advertising and marketing materials, as may be prescribed by regulation, have been filed with the Insurance Commissioner. In no event shall any marketing materials expressly reference that the insurance is “free” for any period of time. The inclusion of any reference in the marketing materials that would cause a viator to reasonably believe that the insurance is free for any period of time shall be considered a violation of the Viatical Settlements Act of 2008. E. No life insurance producer, insurance company, viatical settlement broker, viatical settlement provider or viatical settlement investment agent shall make any statement or representation to the applicant or policyholder in connection with the sale or financing of a life insurance policy to the effect that the insurance is free or without cost to the policyholder for any period of time unless provided in the policy. F. No person providing premium financing shall receive any proceeds, fees or other consideration from the policy or owner of the policy that is in addition to the amounts required to pay principal, interest, and any other reasonable costs or expenses in type and amount incurred by the lender or borrower in connection with the premium finance agreement, except for the event of a default, unless either the default on the loan or transfer of the policy in connection with the default occurs pursuant to an agreement or understanding with any other person for the purpose of evading regulation under this act. Any payments, charges, fees or other amounts received by a person providing premium financing in violation of this subsection shall be remitted to the original owner of the policy or to the estate of the owner if the owner is deceased at the time of the determination of the overpayment. G. No person shall issue, solicit, market or otherwise promote the purchase of an insurance policy for the purpose of, or with an emphasis on, settling the policy.

Legislative History

Added by Laws 2008, c. 183, § 11, eff. Nov. 1, 2008. Amended by Laws 2008, c. 344, § 7, eff. Nov. 1, 2008.