Nebraska Administrative Code › Topic - INSURANCE, DEPARTMENT OF › Title 210 - NEBRASKA DEPARTMENT OF INSURANCE › Chapter 76 - VIATICAL SETTLEMENTS › Section 210-76-007 - General Rules

Current through June 17, 2024
007.01 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.
007.02 Payment of the proceeds of a viatical
				settlement pursuant to
Neb . Rev. Stat .
§
									44-1109(4)
				 shall be by means of wire transfer to the
				account of the viator or by certified check or cashier's check.
007.03 Payment of the proceeds of 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.
007.04 A viatical settlement provider or
				viatical settlement broker shall not discriminate in the making or solicitation
				of viatical settlements or discriminate between viators with dependents and
				without dependents.
007.05 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.
007.06 If a viatical settlement provider
				enters into a viatical settlement that allows the viator to retain an interest
				in the policy, the viatical settlement contract shall contain the following
				provisions;
( 007.06A) A provision that the
				viatical settlement provider will effect the transfer of the amount of the
				death benefit only to the extent or portion of the amount viaticated. Benefits
				in excess of the amount viaticated shall be paid directly to the viator's
				beneficiary by the insurance company.
(
				007.06B) A provision that the viatical settlement provider will,
				upon acknowledgment of the perfection of the transfer, either;
007.06B(1)) Advise the insured, in writing,
				that the insurance company has confirmed the viator's interest in the policy;
				or
007.06B(2)) Send a copy of the
				instrument sent from the insurance company to the viatical settlement provider
				that acknowledges the viator's interest in the policy; and
( 007.06C) A provision that apportions the
				premiums to be paid by the viatical settlement provider and the viator. It is
				permissible for the viatical settlement contract to specify that all premiums
				shall be paid by the viatical settlement provider. The contract may also
				require that the viator reimburse the viatical settlement provider for the
				premiums attributable to the retained interest.