§ 626.7. Disclosure
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. InsuranceEffective: December 31, 2002
Effective: December 31, 2002
40 P.S. § 626.7
§ 626.7. Disclosure
(a) General rule.--With each application for a viatical settlement, a viatical settlement provider or viatical settlement broker shall provide the viator with at least the following disclosures no later than the time the application for the viatical settlement contract is signed by all parties. The disclosures shall be provided in a separate document that is signed by the viator and the viatical settlement provider or viatical settlement broker and shall provide the following information:
(5) the viator has the right to rescind a viatical settlement contract for 15 calendar days from the receipt of the viatical settlement proceeds by the viator as provided in section 8(g).1 If the insured dies during the rescission period, the settlement contract shall be deemed to have been rescinded, subject to repayment of all viatical settlement proceeds and other payments made by the viatical settlement provider on behalf of the viator or insured to the viatical settlement provider;
(8) all medical, financial or personal information solicited or obtained by a viatical settlement provider or viatical settlement broker about an insured, including the insured's identity or the identity of family members, a spouse or a significant other may be disclosed as necessary to effect the viatical settlement between the viator and the viatical settlement provider and/or financing entities. If a viator is asked to provide this information, the viator must consent to the disclosure, and failure to consent may affect the viator's ability to viaticate a life insurance policy. The information may be provided to viatical settlement purchasers, financing entities, special purpose entities or related provider trusts; and
(b) Viatical settlements brochure.--Prior to the time the application for a viatical settlement contract is signed by all parties, a viatical settlement provider or viatical settlement broker shall provide the viator with a brochure describing the process of viatical settlements. The department shall develop this brochure to educate consumers in the selling of their life insurance policies.
(c) Disclosures by viatical settlement provider.--A viatical settlement provider shall provide the viator with at least the following disclosures no later than the time the viatical settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in the viatical settlement contract or in a separate document signed by the viator and the viatical settlement provider or viatical settlement broker and provide the following information:
(3) If an insurance policy to be viaticated has been issued as a joint policy or involves family riders or any coverage of a life other than the insured under the policy to be viaticated, the possible loss of coverage on the other lives under the policy and shall be advised to consult with his or her insurance producer or the insurer issuing the policy for advice on the proposed viatical settlement.
(4) The dollar amount of the current death benefit payable to the viatical settlement provider under the policy or certificate and, if known, the availability of any additional guaranteed insurance benefits, the dollar amount of any accidental death and dismemberment benefits under the policy or certificate and the viatical settlement provider's interest in those benefits.
(d) Disclosure by a viatical settlement broker.--In addition to any other disclosures, a viatical settlement broker shall provide a prospective viator with at least the following disclosures prior to the date the viatical settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in a document signed by the viator and the viatical settlement broker and shall provide the amount and method of calculating the viatical settlement broker's potential compensation. The term “compensation” includes anything of value paid or given to a viatical settlement broker for the placement of a policy.
Credits
2002, July 4, P.L. 699, No. 107, § 7, effective in 180 days.
Footnotes
40 P.S. § 626.8.
40 P.S. § 626.7, PA ST 40 P.S. § 626.7
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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