Disclosures to viator upon or before execution of application for settlement.
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 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) The possible alternatives to viatical settlement, including any accelerated death benefits or loans offered under the viator’s policy.
(b) 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.
(c) Proceeds of the viatical settlement may be subject to the claims of creditors.
(d) 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.
(e) The viator has a right to terminate a viatical settlement within 15 days after his receipt of the proceeds, as provided in NRS 688C.300, and if the insured dies during that period, the settlement is terminated and all proceeds must be repaid to the provider.
(f) Money will be sent to the viator within 3 business days after the provider has received the insurer’s or group administrator’s acknowledgment that ownership of or interest in the policy has been transferred and the beneficiary has been designated.
(g) 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.
(h) 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.
2. The document in which the disclosures required by paragraphs (a) to (g), 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 his identity and that of members of his 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.
Last modified: February 27, 2006