W. Va. Code R. § 114-80-8

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

Section 114-80-8 - Contracts and Payment of Proceeds

8.1. Every viatical settlement provider shall file for approval with the Commissioner each contract form, application form, brochure and disclosure state form pursuant to W. Va. Code § 33-13C-5.

8.2. In addition to the requirements in W. Va. Code § 33-13C-10, every contract shall include the following provisions:

8.2.a. If the viator elects the right to rescind the contract, the provider's rights or interest in the policy will terminate immediately upon the viator giving notice of the rescission and tendering of the settlement proceeds together with any escrow interest received by the viator.

8.2.b. The amount of the fee or fees to be paid by the viator to the provider in conjunction with the contract shall be clearly stated, along with any conditions of payment or receipt of the fee or fees.

8.2.c. The contract together with the application constitutes the entire agreement between the parties.

8.2.d. If the contract provides for the payment of an additional settlement amount to the viator upon the exercise of a guaranteed insurability option by the viator, the contract shall disclose the amount of the additional settlement and the terms upon which it shall be payable.

8.2.e. If the policy to be viaticated provides a guaranteed insurability option, the option may only be exercised for the benefit of a person who has an insurable interest in the life to be insured.

8.2.f. The viatical settlement provider shall instruct the viator to send the executed documents required to effect the change in ownership, assignment or change in beneficiary directly to the escrow agent. Upon the escrow agent's receipt of the acknowledgment of the properly completed transfer of ownership, assignment or designation of beneficiary from the insurance company, the escrow agent shall pay the settlement proceeds to the viator, broker and any other persons pursuant to the viatical settlement contract and the escrow agreement. The escrow agent shall make payment within three business days of the date the escrow agent received the acknowledged forms from the insurance company.

8.3. Every application for a contract shall:

8.3.a. Contain the viator's printed name and signature;

8.3.b. Be notarized by a person who does not have a financial interest in the policy or viatical settlement contract; and

8.3.c. Provide for an acknowledgment by the viator of receipt of the information booklet required by W. Va. Code § 33-13C-8.

W. Va. Code R. § 114-80-8