Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 2 - Division of Insurance › Chapter 31 - Miscellaneous › Article 3 - Viatical Settlements › 3 AAC 31.380 - Disclosure requirements

Current through May 31, 2024
(a) Before an
				  application for a viatical settlement contract is signed, a viatical settlement
				  provider, viatical settlement broker, or viatical settlement representative
				  shall provide disclosure statements in a conspicuous manner to a viator in a
				  separate document. The document containing the disclosure statements must be
				  signed by the viatical settlement provider, viatical settlement broker, or
				  viatical settlement representative, and by the viator. In the document, the
				  following information must be disclosed:
(1)
				  possible alternatives to a viatical settlement contract, including policy loans
				  or accelerated death benefits that may be offered under the viator's life
				  insurance policy;
(2) that some or
				  all of the proceeds of the viatical settlement contract may be taxable under
				  federal income tax or state franchise or income tax laws, along with a
				  recommendation that the viator seek assistance from a professional tax
				  advisor;
(3) that proceeds from a
				  viatical settlement contract could be subject to the claims of
				  creditors;
(4) that receipt of the
				  proceeds from a viatical settlement contract may adversely affect the viator's
				  eligibility for Medicaid or other government benefits or entitlements, along
				  with a recommendation that the viator obtain advice from the appropriate
				  government agency;
(5) the viator's
				  right to rescind a viatical settlement contract within 15 days after the date
				  of receipt of the proceeds from a viatical settlement contract by the viator
				  pending return of the proceeds;
(6)
				  that the proceeds from a viatical settlement contract will be sent to the
				  viator within three working days after the viatical settlement provider
				  receives the insurer's or group administrator's acknowledgment that
(A) ownership of the life insurance policy or
				  interest in the group certificate has been transferred to the viatical
				  settlement provider; and
(B) the
				  beneficiary under the viatical settlement contract has been
				  designated;
(7) that
				  entering into a viatical settlement contract may cause other rights or benefits
				  available to the viator, including conversion rights and waiver of premium
				  benefits existing under the life insurance policy or interest in the group
				  certificate, to be forfeited, along with a recommendation that the viator seek
				  assistance from a financial adviser;
(8) the name, business address, and telephone
				  number of the independent trustee or escrow agent that is to be used in the
				  transaction, along with a statement that the viator may inspect or receive
				  copies of relevant agreements or documents provided by the trustee or escrow
				  agent;
(9) that providing false or
				  misleading information in order to obtain an insurance policy is insurance
				  fraud under
				  AS
				  21.36.360;
(10) the name, address, and telephone number
				  of the viatical settlement provider;
(11) that all medical, financial, and
				  personal information solicited or obtained by a viatical settlement provider,
				  viatical settlement broker, or viatical settlement representative about a
				  viator and insured, including the viator's or insured's identity and the
				  identity of family members, a spouse, or a spousal equivalent of the viator or
				  insured, is confidential unless disclosure is
(A) necessary to effectuate a viatical
				  settlement contract between the viator and a viatical settlement provider and
				  the viator and insured have provided prior written consent to release the
				  information; or
(B) provided in
				  response to an investigation or examination by the director;
(12) that by entering into a
				  viatical settlement contract, information regarding the viator's or insured's
				  identity and medical condition will be available to each subsequent owner of
				  the life insurance policy;
(13)
				  that subject to (12) of this subsection, medical, financial, and personal
				  information solicited or obtained by a viatical settlement provider, viatical
				  settlement broker, or viatical settlement representative about a viator or
				  insured, including the viator's or insured's identity or the identity of a
				  viator's or insured's family members, spouse, or a spousal equivalent may be
				  provided to viatical settlement financing entities;
(14) that the insured may be contacted no
				  more than once every three months if the insured has a life expectancy of more
				  than one year and no more than once per month if the insured has a life
				  expectancy of one year or less by the viatical settlement provider, the
				  viatical settlement broker, or the viatical settlement representative to
				  determine the insured's health status;
(15) the information in Appendix A of this
				  section printed in at least 12-point typeface.