Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 1 - Banking, Securities, Small Loans and Corporations › Chapter 08 - Securities › Article 6 - Viatical Settlement Interests › 3 AAC 08.710 - Registration requirements for viatical settlement interests

Current through May 31, 2024
(a) Under
				  3 AAC 08.700 -
				  3 AAC 08.740, an offer or sale of a viatical settlement
				  interest, or of a security that represents or is secured by a viatical
				  settlement interest, may be registered if
(1)
				  a person listed in (b) of this section is not subject to a disqualification set
				  out in (1)-(4) of that subsection;
(2) a registration statement on State of
				  Alaska Form 08-102, the fee established in
				  3 AAC 08.920(a) (10), and the consent
				  to service of process required by
				  AS
				  45.55.980(g) are filed with
				  the administrator; the registration statement must include
(A) the name, address, and telephone number
				  of the issuer and a brief description of the general character and location of
				  the issuer's business;
(B) a
				  statement demonstrating eligibility for registration under (7) of this
				  subsection and (b) of this section;
(C) a description of the security being
				  offered or sold,
(i) including a general
				  description of the program offered by the issuer; and
(ii) not including details of specific
				  viaticated policies or viatical settlement contracts; and
(D) a description of the kind and amount of
				  commissions, finders' fees, or other remuneration paid directly or indirectly
				  in connection with soliciting a sale of a viatical settlement interest in this
				  state;
(3) the following
				  items are filed along with the registration statement:
(A) any prospectus, pamphlet, circular, form
				  letter, advertisement, or other sales literature used or intended to be used in
				  connection with the offer or sale of the security;
(B) the issuer's most recent audited income
				  and expense statement and balance sheet; as part of the information required
				  under (5) of this subsection, the issuer must inform a prospective viatical
				  settlement purchaser of the availability of those documents; a prospective
				  viatical settlement purchaser may obtain copies upon written request to the
				  administrator;
(C) information to
				  be furnished under (5) of this subsection to a prospective individual viatical
				  settlement purchaser;
(D) other
				  information or documents as the administrator by order requires;
(4) the offer or sale is made by,
				  and commissions or other remuneration in connection with making the sale are
				  made only to, persons registered or required to be registered under
				  AS
				  45.55.030(a) or (c) and
				  AS
				  45.55.040;
(5) before a sale, each prospective
				  individual viatical settlement purchaser is furnished written information that
				  is sufficient to make an informed investment decision; for purposes of this
				  paragraph,
(A) information that is sufficient
				  to make an informed investment decision includes the
(i) viatical settlement disclosure document
				  developed by the administrator and available on State of Alaska Form 08-114,
				  Part A; the issuer must provide in that document an address to which a notice
				  of rescission may be sent under
				  3 AAC 08.720; and
(ii) disclosure of any significant factors
				  that may affect the outcome of the investment; and
(B) a sale occurs when the viatical
				  settlement purchaser executes and the seller, or its representative, accepts
				  the viatical settlement purchase agreement;
(6) on or before the date when the viatical
				  settlement provider identifies and presents to the viatical settlement
				  purchaser an acceptable, specific viatical contract under the executed viatical
				  settlement purchase agreement, an individual viatical settlement purchaser
				  receives a viatical settlement disclosure document that the issuer has
				  completed using State of Alaska Form 08-114, Part B; and
(7) the issuer and the issuer's predecessors
				  have been in continuous operation for at least three years without a default
				  during the current fiscal year or within the two preceding fiscal years in the
				  payment of principal, interest, dividends, or other obligations on a security
				  of the issuer or a predecessor of the issuer with a fixed maturity or a fixed
				  interest, dividend, or other provision.