Nevada Revised Statutes Section 688C.270 - Insurance

Prerequisites to entry by viator into settlement within 2 years after issuance of policy; submission of independent evidence or certification to insurer.

1. A viator may not enter into a viatical settlement within 2 years after the issuance of the policy to which the settlement relates unless one or more of the following conditions is or has been satisfied:

(a) The policy was issued upon the owner’s exercise of a right of conversion arising out of a group policy.

(b) The owner of the policy is a charitable organization exempt from taxation under 26 U.S.C. § 501(c)(3).

(c) The owner of the policy is a business organization.

(d) The viator or owner submits to the provider of viatical settlements independent evidence that within the 2-year period:

(1) The owner or insured has been diagnosed to have an illness or condition that is life-threatening or requires a course of treatment for at least 2 years, long-term care or health care at home, or any combination of these;

(2) The spouse of the owner or insured has died;

(3) The owner or insured has divorced his spouse;

(4) The owner or insured has retired from full-time employment;

(5) The owner or insured has become physically or mentally disabled and a physician determines that the disability precludes him from maintaining full-time employment;

(6) The owner of the policy was the employer of the insured and that relationship has terminated;

(7) A final judgment or order has been entered or issued by a court of competent jurisdiction, on the application of a creditor or owner of the insured, adjudging the owner or insured bankrupt or insolvent, or approving a petition for reorganization of the owner or insured or appointing a receiver, trustee or liquidator for all or a substantial part of the assets of the owner or insured;

(8) The owner of the policy experiences a significant decrease in income which is unexpected by him and impairs his reasonable ability to pay the premium on the policy; or

(9) The owner or insured disposes of his ownership in a closely held corporation.

2. The independent evidence must be submitted to the insurer when the provider of viatical settlements submits a request to the insurer to effect transfer of the policy to him. The insurer shall respond timely to the request. This section does not prohibit an insurer from exercising its right to contest a policy on the ground of fraud.

3. If a provider of viatical settlements submits to an insurer a copy of the owner’s or insured’s certification that one of the events described in paragraph (d) of subsection 1 has occurred, the certification conclusively establishes that the viatical settlement is valid, and the insurer shall timely respond to the provider’s request to effect a transfer of the policy.

Last modified: February 27, 2006