W. Va. Code R. § 114-80-7

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 114-80-7 - General Rules

7.1. Payment of the proceeds of a viatical settlement contract pursuant to W. Va. Code § 33-13C-10 shall be by means of wire transfer to an account designated by the viator or by certified check or cashier's check.

7.2. Payment of the proceeds payable to the viator pursuant to a viatical settlement contract 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, 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.

7.3. A viatical settlement provider or a viatical settlement broker shall not discriminate in the making or soliciting of viatical settlement contracts or discriminate between viators with dependents and without.

7.4. A viatical settlement provider shall not knowingly solicit purchasers who have treated or have been asked to treat the illness of the viator whose coverage would be the subject of the investment.

7.5. If a viatical settlement provider enters into a viatical settlement contract that allows the viator to retain an interest in the policy, the viatical settlement contract shall contain the following:

7.5.a. 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. The contract shall provide that benefits in excess of the amount viaticated shall be paid directly to the viator's beneficiary by the insurance company.

7.5.b. A provision that the viatical settlement provider will, upon acknowledgment of the completion of the transfer by the insurance company, either;

7.5.b.1. Advise the viator, in writing, that the insurance company has confirmed the viator's interest in the policy; or

7.5.b.2. 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.

7.5.c. 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.

7.6. In all cases where the viator is a minor child, disclosures to and permission of a parent or legal guardian shall satisfy the requirements of W. Va. Code § 33-13C-8 and this rule.

W. Va. Code R. § 114-80-7