§ 27-72-6. Reporting requirements and privacy.
(a)(1) For any policy settled within five (5) years of policy issuance, each provider shall
file with the commissioner on or before March 1 of each year an annual statement containing
such information as the commissioner may prescribe by regulation. In addition to any
other requirements, the annual statement shall specify the total number, aggregate
face amount and life settlement proceeds of policies settled during the immediately
preceding calendar year, together with a breakdown of the information by policy issue
year. The annual statement shall also include the names of the insurance companies
whose policies have been settled and the brokers that have settled said policies.
(2) Such information shall be limited to only those transactions where the insured is
a resident of this state and shall not include individual transaction data regarding
the business of life settlements or information that there is a reasonable basis to
believe could be used to identify the owner or the insured.
(3) Every provider that willfully fails to file an annual statement as required in this
section, or willfully fails to reply within thirty (30) days to a written inquiry
by the commissioner in connection therewith, shall, in addition to other penalties
provided by this chapter, be subject, upon due notice and opportunity to be heard,
to a penalty of up to two hundred fifty dollars ($250) per day of delay, not to exceed
twenty-five thousand dollars ($25,000) in the aggregate, for each such failure.
(4) The department may have this annual report reviewed and analyzed by outside consultant(s)
and the total cost of that review shall be borne by, billed directly to, and paid
by the provider filing the annual statement.
(b) Except as otherwise allowed or required by law, a provider, broker, insurance company,
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
an insured or information that there is a reasonable basis to believe could be used
to identify the insured or the insured's financial or medical information to any other
person unless the disclosure:
(1) Is necessary to effect a life settlement contract between the owner and a provider
and the owner and insured have provided prior written consent to the disclosure;
(2) Is necessary to effectuate the sale of life settlement contracts, or interests therein,
as investments, provided the sale is conducted in accordance with applicable state
and federal securities law and provided further that the owner and the insured have
both provided prior written consent to the disclosure;
(3) Is provided in response to an investigation or examination by the commissioner or
any other governmental officer or agency or pursuant to the requirements of this chapter;
(4) Is a term or condition to the transfer of a policy by one provider to another provider,
in which case the receiving provider shall be required to comply with the confidentiality
requirements of this chapter;
(5) Is necessary to allow the provider or its authorized representatives to make contacts
for the purpose of determining health status. For the purposes of this section, the
term "authorized representative� shall not include any person who has or may have
any financial interest in the settlement contract other than a provider, licensed
broker, financing entity, related provider trust, or special purpose entity; further,
a provider or broker shall require its authorized representative to agree in writing
to adhere to the privacy provisions of this chapter; or
(6) Is required to purchase stop loss coverage.
(c) Nonpublic personal information solicited or obtained in connection with a proposed
or actual life settlement contract shall be subject to the provisions applicable to
financial institutions under the federal Gramm-Leach-Bliley Act, Pub. L. No. 106-102 (1999), and all other state and federal laws relating to confidentiality of nonpublic
personal information.