Acquisition of certain documents by provider before entry into settlement; notice to issuer of policy.
1. A provider of viatical settlements who enters into a settlement shall first obtain:
(a) If the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constraint or undue influence to enter into a settlement;
(b) A witnessed document in which the viator represents that he has a full and complete understanding of the settlement and of the benefits of the policy, acknowledges that he has entered into the settlement freely and voluntarily and, if applicable to determine a payment to a person terminally or chronically ill, acknowledges that he is terminally or chronically ill and that the illness was diagnosed after the policy was issued; and
(c) A document in which the insured consents to the release of his medical records to a provider or broker of viatical settlements and the insurer that issued the policy covering him.
2. Within 20 days after a viator executes documents necessary to transfer rights under a policy, or enters into an agreement in any form, express or implied, to viaticate the policy, the provider of viatical settlements shall give written notice to the issuer of the policy that the policy has or will become viaticated. The notice must be accompanied by a copy of the release of medical records and the application for the viatical settlement.
Last modified: February 27, 2006