Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 2 - Division of Insurance › Chapter 31 - Miscellaneous › Article 3 - Viatical Settlements › 3 AAC 31.370 - Approval of viatical settlement contracts and disclosure statements

Current through May 31, 2024
(a) A
				  person may not use a viatical settlement contract or provide to a viator a
				  disclosure form in this state unless the contract or form is filed with and
				  approved by the director for compliance with this section.
(b) A viatical settlement contract or a
				  disclosure form must be filed with the director not less than 30 days before
				  the anticipated date of delivery of the viatical settlement contract or
				  disclosure form.
(c) The director
				  will not approve a viatical settlement contract or disclosure form if the
				  director determines that the viatical settlement contract or disclosure form
				  contains a statement or provision that is unreasonable, contrary to the
				  interests of the public, misleading, unfair to the viator or insured, or in
				  violation of
				  3 AAC 31.300 -
				  3 AAC 31.449.
(d) If a viatical settlement provider enters
				  into a viatical settlement contract that allows the viator to retain an
				  interest in the life insurance policy, the viatical settlement contract must
				  contain the following:
(1) a statement that
				  the viatical settlement provider will pay viatical settlement contract proceeds
				  to the viator only to the extent or portion of the death benefit subject to the
				  viatical settlement contract;
(2) a
				  statement that the viator's remaining interest in the life insurance policy
				  will be paid directly to the viator's beneficiary by the insurance
				  company;
(3) a statement that the
				  viatical settlement provider will, upon notification by the insurance company
				  that an ownership interest in a life insurance policy has been transferred and
				  a beneficiary has been designated,
(A) advise
				  the insured, in writing, that the insurance company has confirmed the viator's
				  interest in the policy and that ownership or an interest in the life insurance
				  policy has been transferred; or
(B)
				  send to the insured a copy of the communication that was sent from the
				  insurance company to the viatical settlement provider acknowledging the
				  viator's interest in the policy and that ownership or interest in the life
				  insurance policy has been transferred;
(4) a provision that apportions the premiums
				  to be paid by the viatical settlement provider and the viator; the viatical
				  settlement contract may specify that all premiums must be paid by the viatical
				  settlement provider and may require that the viator reimburse the viatical
				  settlement provider for the premiums attributable to the amount of interest the
				  viator retains in the life insurance policy;
(5) a statement in at least 10-point bold
				  typeface substantially similar to the following statement: "Any person who
				  knowingly presents false information in an application for insurance or for a
				  viatical settlement contract is guilty of a crime and may be subject to
				  penalty."