(1) Immediately upon receipt of documents from the policyholder or certificate holder effecting the transfer of the insurance policy or certificate, the life settlement provider shall pay the proceeds of the settlement to an escrow or trust account managed by a trustee or escrow agent in a bank approved by the Director of the Department of Consumer and Business Services, pending acknowledgment of the transfer by the issuer of the life insurance policy. The trustee or escrow agent shall be required to transfer the proceeds due to the policyholder or certificate holder immediately upon receipt of acknowledgment of the transfer from the insurer.
(2) A life settlement provider shall make payment of the proceeds of a life settlement contract in a lump sum, except as provided in this subsection. A life settlement provider shall not retain any portion of the proceeds. A life settlement provider may make installment payments only if the life settlement provider has purchased an annuity issued by an authorized insurer or a similar financial instrument issued by a financial institution authorized to engage in the business of a financial institution in this state.
(3) Failure by the life settlement provider to tender the life settlement by the date disclosed to the policyholder or certificate holder renders the contract void. [1995 c.342 §17]Section: Previous 744.345 744.346 744.348 744.350 744.351 744.353 744.355 744.356 744.358 744.360 744.365 744.370 744.375 744.380 744.385 Next
Last modified: August 7, 2008