Iowa Administrative Code › Agency 191 - Insurance Division › Viatical and Life Settlements › Chapter 48 - Viatical and Life Settlements › Rule 191-48.9 - Requirements and Prohibitions

Current through Register Vol. 47, No. 3, July 24, 2024
(1) With
				respect to policies containing a provision for double or additional indemnity
				for accidental death, the additional payment shall remain payable to the
				beneficiary last named by the viator prior to entering into the viatical
				settlement contract, or to such other beneficiary, other than the viatical
				settlement provider, as the viator may thereafter designate, or in the absence
				of a beneficiary, to the estate of the viator.
(2) Payment of the proceeds to the viator
				pursuant to a viatical settlement contract shall be made in a lump sum except
				where the viatical settlement provider has purchased a single-premium paid-up
				annuity issued by a licensed insurance company to the viator Retention of a
				portion of the proceeds by the viatical settlement provider or escrow agent is
				not permissible. For purposes of this subrule, "escrow agent" means an
				individual or institution that has established an escrow or trust account with
				a state-chartered or federally chartered financial institution whose deposits
				and accounts are insured by the Federal Deposit Insurance Corporation (FDIC)
				and with which an escrow account has been established for use by a viatical
				settlement provider or viatical settlement purchaser
(3) If a viatical settlement provider or
				viatical settlement broker is served with a subpoena and thereby compelled to
				produce records containing patient-identifying information, the viatical
				settlement provider or viatical settlement broker shall notify the viator and
				the insured in writing at the viator's and the insured's last-known addresses
				within five business days after receiving notice of the subpoena.
(4) A viatical settlement provider shall not
				act also as a viatical settlement broker, whether entitled to collect a fee
				directly or indirectly, related to the same viatical settlement
				contract.
(5) A viatical settlement
				broker shall not, without the written agreement of the viator obtained prior to
				performing any services in connection with a viatical settlement, seek or
				obtain any compensation from the viator
(6) A viatical settlement provider shall not
				use a longer life expectancy than is reasonable based on all medical and
				actuarial information available at the time of a viatical settlement
				transaction in order to reduce the payout to which the viator is
				entitled.
(7) A viatical settlement
				provider or viatical settlement broker shall not discriminate in the making or
				solicitation of viatical settlement contracts on the basis of race, age, sex,
				national origin, creed, religion, occupation, marital or family status or
				sexual orientation, or discriminate between viators with or without
				dependents.
(8) A viatical
				settlement provider or viatical settlement broker shall not pay or offer to pay
				any finder's fee, commission or other compensation to any insured's physician,
				or to an attorney, accountant or other person providing medical, legal or
				financial planning services to an insured or viator, or to any other person
				acting as an agent of an insured or viator with respect to a viatical
				settlement contract.
(9) A viatical
				settlement provider shall not knowingly solicit individuals who have treated or
				have been asked to treat the illness of an insured whose coverage would be the
				subject of a viatical settlement contract.
(10) A life insurance company may not charge
				a fee for responding to a request for information from a viatical settlement
				provider or viatical settlement broker in compliance with this rule in excess
				of any usual and customary charges to contract holders, certificate holders or
				insureds for similar services.
(11)
				In recommending a viatical settlement contract, viatical settlement brokers and
				viatical settlement providers shall make suitable recommendations.