N.M. Admin. Code § 13.9.15.14

Current through Register Vol. 35, No. 24, December 23, 2024

Section 13.9.15.14 - VIATOR RETENTION PROVISIONS

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 a provision that:

A. the viatical settlement provider will effect the transfer of only the amount of the death benefit viaticated. Benefits in excess of the amount viaticated shall be paid directly to the viator's beneficiary by the insurance company;

B. the viatical settlement provider will, upon acknowledgment of the perfection of the transfer, either:

(1) advise the insured, in writing, that the insurance company has confirmed the viator's interest in the policy; or

(2) send a copy of the instrument sent from the insurance company to the viatical settlement company that acknowledges the viator's interest in the policy; and

C. apportions the premiums to be paid by the viatical settlement company and the viator. The viatical settlement contract may specify that all premiums shall be paid by the viatical settlement company and may also require that the viator reimburse the viatical settlement provider for the premiums attributable to the retained interest.

N.M. Admin. Code § 13.9.15.14

13.9.15.14 NMAC - N, 7-1-00