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Office of the Revisor of Statutes

60A.961 DEFINITIONS.
    Subdivision 1. Application. For the purposes of sections 60A.961 to 60A.974, the definitions
in this section have the meanings given them.
    Subd. 2. Person. "Person" means a natural or artificial entity, including individuals,
partnerships, associations, trusts, limited liability companies, or corporations.
    Subd. 3. Viatical settlement broker. "Viatical settlement broker" means an individual,
partnership, limited liability company, corporation, or other entity who or which for another
and for a fee, commission, or other valuable consideration, offers or advertises the availability
of viatical settlements, introduces viators to viatical settlement providers, or offers or attempts
to negotiate viatical settlements between a viator and one or more viatical settlement providers.
"Viatical settlement broker" does not include an attorney, accountant, or financial planner retained
to represent the viator whose compensation is not paid by the viatical settlement provider.
    Subd. 4. Viatical settlement contract. "Viatical settlement contract" means a written
agreement entered into between a viatical settlement provider and a person owning a life
insurance policy or who owns or is covered under a group policy insuring the life of a person who
has a catastrophic or life threatening illness or condition. The agreement must establish the terms
under which the viatical settlement provider will pay compensation or anything of value, which
compensation or value is less than the expected death benefit of the insurance policy or certificate,
in return for the policy owner's assignment, transfer, sale, devise, or bequest of the death benefit
or ownership of the insurance policy or certificate to the viatical settlement provider.
    Subd. 5. Viatical settlement provider. "Viatical settlement provider" means an individual,
partnership, limited liability company, corporation, or other entity that enters into an agreement
with a person owning a life insurance policy or who owns or is covered under a group policy
insuring the life of a person who has a catastrophic or life threatening illness or condition, under
the terms of which the viatical settlement provider pays compensation or anything of value,
which compensation or value is less than the expected death benefit of the insurance policy or
certificate, in return for the policy owner's assignment, transfer, sale, devise, or bequest of the
death benefit or ownership of the insurance policy or certificate to the viatical settlement provider.
Viatical settlement provider does not include:
(1) a bank, savings bank, savings association, credit union, or other licensed lending
institution that takes an assignment of a life insurance policy as collateral for a loan;
(2) the issuer of a life insurance policy providing accelerated benefits under section 61A.072;
or
(3) a natural person who enters into 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.
    Subd. 6. Viator. "Viator" means the owner or certificate holder of a life insurance policy
insuring the life of a person with a catastrophic or life threatening illness or condition who enters
into an agreement under which the viatical settlement provider will pay compensation or anything
of value, which compensation or value is less than the expected death benefit of the insurance
policy or certificate, in return for the viator's assignment, transfer, sale, devise, or bequest of the
death benefit or ownership of the insurance policy or certificate to the viatical settlement provider.
History: 1995 c 151 s 2