Oklahoma Administrative Code › Title 365 - Insurance Department › Chapter 25 - Other Licensees › Subchapter 11 - Viatical Settlements Regulation › Section 365:25-11-6 - General rules

Current through Vol. 41, No. 20, July 1,
				2024
(a) Viatical
				settlement brokers, at the time of their first contact with a prospective
				viator, shall provide an informational brochure. Such brochure shall use the
				language and format set out in Appendix U.
(b) 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 agreement, or to such
				other beneficiary, other than the viatical settlement provider, as the viator
				may thereafter designate, or in the absence of a designation, to the estate of
				the viator.
(c) Payment of the
				proceeds of a viatical settlement pursuant to 4055.9(D) of the Act shall be by
				means of wire transfer to an account designated by the viator or by certified
				check or cashier's check.
(d)
				Payment of the proceeds 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 not disclosed
				or described in the viatical settlement contract by the viatical settlement
				provider or escrow agent is not permissible without written consent of the
				viator.
(e) A viatical settlement
				provider or broker shall not discriminate in the making or soliciting of
				viatical settlements on the basis of race, age, sex, national origin, creed,
				religion, occupation, marital or family status or sexual orientation, or
				discriminate between viators with dependents and without.
(f) A viatical settlement provider or broker
				shall not pay or offer to pay any finder's fee, commission or other
				compensation to any insured's physician, 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.
(g) 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.
(h) 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;
(1) 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;
(2) A provision that the viatical settlement
				provider will, upon acknowledgment of the perfection of the transfer, either;
(A) Advise the insured, in writing, that the
				insurance company has confirmed the viator's interest in the policy;
				or
(B) 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
(3) A provision that apportions the premiums
				to be paid by the viatical settlement provider and the viator, provided that
				the contract provides premium payment terms and nonforfeiture options no less
				favorable, on a proportional basis, than those included in the
				policy.