Code of Massachusetts Regulations › 940 CMR - OFFICE OF THE ATTORNEY GENERAL › Title 940 CMR 18.00 - Viatical Settlements And Viatical Loans › Section 18.06 - Viatical Loan Disclosures

Current through Register 1525, July 5, 2024
(1) It is an
			 unfair or deceptive act or practice for a Viatical Loan Provider, Broker, or
			 Representative to fail to mail to the last known address(es) of, or to provide
			 in person to, the Viatical Loan Applicant/Borrower and the Insured the
			 following Attorney General's Viatical Loan Disclosure Form (the "Form"). This
			 Form shall be completed and mailed to the last known address(es) of, or
			 provided in person to, the Viatical Loan Applicant/Borrower and the Insured
			 pursuant to 940 CMR 18.06(6), on a separate document in at least ten point type
			 or ten pitch courier.
VIATICAL LOAN DISCLOSURES REQUIRED BY THE ATTORNEY GENERAL'S
				CONSUMER PROTECTION REGULATIONS
Business Name:
Business or Mailing Address:
Viatical Loan Provider/Broker/Representative Massachusetts
				License Number: (if applicable)
Date License Issued:
License Expiration Date:
I am/We are a Viatical Loan Provider/Broker/Representative.
				With this application, you are applying for a Viatical Loan. I/We shall not
				divulge Patient Identifying Information of the Insured without the express,
				written consent of the Insured. I/We shall take every reasonable precaution to
				ensure that those individuals or entities who rightfully obtain Patient
				Identifying Information do not further divulge such information without the
				express, written consent of the Insured.
We shall provide the Insured with a copy of this completed
				disclosure form. We shall attempt to obtain the consent of the Insured to the
				dissemination of his/her Patient Identifying Information, if necessary to
				effectuate this Viatical Loan.
As part of the Viatical Loan process, the health of the Insured
				may be monitored. If monitoring is required, we must obtain the consent of the
				Insured to the method of monitoring prior to the execution of the Viatical Loan
				Agreement. (If monitoring is required, state method in specific, detailed
				terms).
You will/will not pay an application fee of $ . This fee is/is
				not refundable. You will/will not pay a brokerage fee of $ . This fee is/is not
				refundable.
The loan proceeds will be sent to you within two business days
				after the Viatical Loan Provider, (insert name here, if known) has received
				confirmation from your insurer or group administrator that you own the policy
				or are the certificateholder and the beneficiary has been designated pursuant
				to the Viatical Loan Contract.
We will provide you with the name, address and telephone number
				of the source of the loan proceeds within two business days of our identifying
				that source.
The Annual Percentage Rate ("APR") of interest charged against
				this loan is: . You shall be responsible for the following payment schedule: .
				You will have/not have to pay an additional fee ("prepayment penalty") if you
				pay off this loan early or re-negotiate the loan.
Additional estimated fees that you will pay in connection with
				the above described loan which are not included in the APR are listed below:
				(Specify in detail any additional fees.)
The maturity date of the loan is: . Upon reaching the loan
				maturity date, if you wish to renegotiate the loan, the following terms and
				conditions apply:
If you have any question about your legal rights, you should
				consult your own lawyer, especially before you sign any documents or pay any
				money or anything of value.
DO NOT sign any application forms with blank spaces or with
				incorrect information.
PLEASE NOTE:
You do/do not have the RIGHT TO CANCEL this contract within
				____ days following any of the following events: [Provide detailed method for
				cancellation and for effective notification. Include notice of the effects of
				cancellation and the Applicant's responsibilities thereunder.]
We shall not pay a finder's fee to any Person who is providing,
				or has previously provided, care or services to the Insured, including, but not
				limited to, any medical or mental health provider, social services provider,
				attorney, accountant, financial advisor or planner, investment advisor or
				planner, or any other Person who has a demonstrable conflict of interest in
				collecting a finder's fee.
The Viatical Loan proceeds may be subject to the claims of your
				creditors.
If you have any problems, please call us at:
Printed Name and Address of Viatical Loan
				Applicant/Borrower
Please sign and date below after you receive these
				disclosures.
Signature of Viatical Loan Applicant/Borrower Date:
(2) It is an unfair or deceptive
			 act or practice for a Viatical Loan Provider, Broker or Representative to fail
			 to disclose, during the initial meeting with the Viatical Loan Applicant, its
			 licensing status in Massachusetts.
(3) It is an unfair or deceptive act or
			 practice for a Viatical Loan Provider, Broker or Representative to fail to take
			 reasonable steps to communicate the material facts of the Viatical Loan
			 Agreement in a language that is understood by the Applicant/Borrower and the
			 Insured, respectively. Reasonable steps which shall comply with
			 940 CMR 18.00 may include,
			 but shall not be limited to:
(a) using adult
			 interpreters; and
(b) providing the
			 Applicant/Borrower and the Insured, respectively, with a translated copy of the
			 Attorney General's Disclosure Forms described in 940 CMR 18.06(1) in a language
			 understood by the Applicant/Borrower and the Insured, respectively.