Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.85 - Viatical Settlement Agreements › Rule 6.6.8508 - GENERAL RULES

Current through Register Vol. 13, July 5, 2024
(1) With respect to
				policies containing a provision for double or additional indemnity for
				accidental death, the additional payment must remain payable to the beneficiary
				last named by a viator prior to entering into a viatical settlement contract,
				or to such other beneficiary, other than a viatical settlement provider, as a
				viator may thereafter designate, or in the absence of a beneficiary, to the
				estate of a viator.
(2) Payment of
				the proceeds of a viatical settlement pursuant to
				33-20-1314, MCA, must be by means
				of wire transfer to an account designated by the viator in a notarized writing
				signed by the viator or by certified check or cashier's check.
(3) Payment of the proceeds to the viator
				pursuant to a viatical settlement shall be made in a lump sum except where the
				viatical settlement provider has purchased an annuity or similar financial
				instrument issued by a licensed insurance company or bank, or an affiliate of
				either. Retention of a portion of the proceeds by the viatical settlement
				provider or escrow agent is not permissible.
(4) A viatical settlement provider or
				viatical settlement broker shall not discriminate, as provided in
				33-20-1313, MCA, in the making or
				solicitation of viatical settlements, or discriminate between viators with
				dependents and without.
(5) A
				viatical settlement provider or broker may not condition the consideration of
				an application on exclusive dealing between a viator and a viatical settlement
				provider or broker.
(6) A viatical
				settlement provider may provide personal information about a policyholder or
				certificate holder to a financing entity, but must comply with Title 33, part
				19, MCA.
(7) If a viator rescinds a
				viatical settlement contract, the viator must repay to the viatical settlement
				provider or financing entity all paid settlement proceeds.
(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 the viator, or to any other person acting as an agent of the
				viator, other than a viatical settlement broker with respect to the viatical
				settlement.
(9) A viatical
				settlement provider shall not knowingly solicit purchasers who have treated or
				have been asked to treat the illness of the insured whose coverage would be the
				subject of the investment.
(10) The
				following standards apply to advertising of viatical settlements:
(a) advertising related to a viatical
				settlement must be truthful and not misleading by fact or
				implication;
(b) if the advertiser
				emphasizes the speed with which the viatication will occur, the advertising
				must disclose the average time frame from completed application to the date of
				offer and from acceptance of the offer to receipt of the funds by the viator;
				and
(c) if the advertising
				emphasizes the dollar amounts available to viators, the advertising must
				disclose the average purchase price as a percent of face value obtained by
				viators contracting with the advertiser during the past six months.