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 14VAC5-71-31 - License requirements for viatical settlement providers

Current through Register Vol. 40, No. 24, July 15, 2024
A. No person shall act as a viatical
				settlement provider with a resident of this Commonwealth without first
				obtaining a license from the commission.
B. The license issued to a viatical
				settlement provider shall allow the licensee to enter or effectuate a viatical
				settlement contract only by operating within the scope of its license as a
				viatical settlement provider.
1. No provision
				of this chapter shall be deemed to authorize any viatical settlement provider
				to transact any business other than that of a viatical settlement provider. A
				viatical settlement provider license shall not authorize the licensee to
				transact any business in this Commonwealth for which registration,
				certification or a license is required under any section of the Code of
				Virginia other than §
										38.2-6002.
2. "Viatical settlement provider"
				does not include, and licensing as a viatical settlement provider shall not be
				required of, the following persons:
(i) a
				bank, savings bank, savings and loan association, credit union, or other
				licensed lending institution that takes an assignment of a life insurance
				policy as collateral for a loan;
(ii) the issuer of a life insurance policy
				providing accelerated death benefits governed by 14VAC5-70 and pursuant to the
				contract;
(iii) an authorized or
				eligible insurer that provides stop loss coverage to a viatical settlement
				provider, viatical settlement purchaser, financing entity, special purpose
				entity or related provider trust;
(iv) a financing entity;
(v) a natural person who enters into or
				effectuates no more than one agreement in a calendar year for the transfer of
				life insurance policies for any value less than the expected death
				benefit;
(vi) a special purpose
				entity;
(vii) a related provider
				trust;
(viii) a viatical
				settlement purchaser; or
(ix) the
				accredited investor, qualified institutional buyer or qualified institutional
				purchaser under the Securities Act of 1933, as amended, provided the person is
				acting in the capacity of a person listed above and is neither entering into
				nor attempting to enter into, nor effectuating nor attempting to effectuate a
				viatical settlement contract in this Commonwealth or with any resident of this
				Commonwealth.
3. Except
				as provided in subdivision 2 (v) of this subsection, no person listed in
				subdivision 2 of this subsection shall attempt to enter into or effectuate a
				viatical settlement contract in this Commonwealth or with any resident of this
				Commonwealth without first becoming licensed as a viatical settlement provider
				in accordance with the provisions of this chapter. Notwithstanding the
				foregoing and in accordance with §
										38.2-6002F
				of the Code of Virginia, no licensed insurer shall be licensed as, or
				authorized to transact the business of, a viatical settlement provider in this
				Commonwealth.