Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 71 - RULES GOVERNING VIATICAL SETTLEMENT PROVIDERS AND VIATICAL SETTLEMENT BROKERS › Section 14VAC5-71-35 - Viatical settlement contracts and disclosure statements

Current through Register Vol. 40, No. 24, July 15, 2024
A. No viatical settlement contract, including
				attached riders, amendments or endorsements, and including any application used
				in connection with the viatical settlement contract, shall be used in this
				Commonwealth on or after July 1, 2003, unless the contract and the riders,
				amendments, endorsements and any applications have been filed with and approved
				by the commission.
B. Except as
				provided in subdivision C 1 of this section, no disclosure form shall be
				provided by a licensee under this chapter to a viator or proposed viator in
				this Commonwealth on or after July 1, 2003, unless the disclosure form has been
				filed with the commission by the viatical settlement provider and the viatical
				settlement provider has received notification of the approval of such form by
				the commission. The use of any disclosure form by a licensee under this
				chapter, except as provided in this section, shall be prohibited.
C. Before asking a viator or insured to sign
				any document, a licensee under this chapter shall provide the viator or the
				insured, or both, if the viator and the insured are different individuals, with
				a copy of the disclosure required by § 38.2-6007A of the Code of Virginia.
1. A disclosure form containing wording
				identical to that in subdivision 2 of this subsection is deemed approved for
				use in Virginia in satisfaction of the § 38.2-6007A requirements and need
				not be filed. In accordance with § 38.2-6007A 8 of the Code of Virginia,
				disclosure to a viator shall also include distribution of a brochure describing
				the process of viatical settlements. The brochure entitled "Selling Your Life
				Insurance Policy," or its successor, developed and adopted by the NAIC shall be
				used unless one is developed by the commission. Unless and until a brochure is
				developed by the commission to satisfy the requirements of § 38.2-6007A 8
				of the Code of Virginia, the NAIC's form for the brochure is deemed approved
				for use in Virginia and need not be filed. Other disclosures, brochures and
				formats developed by the NAIC or any other source may not be used to satisfy
				the requirements of this section unless approved by the commission as
				containing substantially similar wording.
2. Whether a disclosure form contains
				"substantially similar" wording, as that term is used herein, shall be
				determined by the commission. Under no circumstances shall a disclosure form be
				considered to contain wording "substantially similar" unless the form addresses
				each and every element contained in the form contained herein.
NAME OF COMPANY LICENSED AS VIATICAL SETTLEMENT PROVIDER OR
				  VIATICAL SETTLEMENT BROKER-AGENCY DISCLOSURE FORM
Note: When and if the broker contacts a potential viator
				  prior to determining which viatical settlement provider he or she may contract
				  with, the broker may use a "deemed" form with the following more generic
				  heading and caption: