60A.970 GENERAL REQUIREMENTS.
Subdivision 1. Required documents.
A viatical settlement provider entering into a viatical
settlement contract with a person with a catastrophic or life threatening illness or condition
shall first obtain:
(1) a written statement from a licensed attending physician that the person is of sound mind
and under no constraint or undue influence; and
(2) a witnessed document in which the person consents to the viatical settlement contract,
acknowledges the catastrophic or life threatening illness, represents that the person has a full and
complete understanding of the viatical settlement contract, acknowledges that the person has a
full and complete understanding of the benefits of the life insurance policy, releases the person's
medical records, and acknowledges that the person has entered into the viatical settlement
contract freely and voluntarily.
Subd. 2. Confidentiality of medical information.
All medical information solicited or
obtained by a licensee is subject to the applicable provisions of state law relating to confidentiality
of medical information.
Subd. 3. Unconditional refund provision.
All viatical settlement contracts entered into in
this state must contain an unconditional refund provision of at least 30 days from the date that
the viator signs an agreement to transfer an insurance policy or 15 days of the receipt of the
viatical settlement proceeds, whichever is less.
Subd. 4. Payment of proceeds.
Immediately upon receipt from the viator of documents to
effect the transfer of the insurance policy, the viatical settlement provider shall pay the proceeds
of the settlement to an escrow or trust account managed by a trustee or escrow agent in a bank
approved by the commissioner, pending acknowledgment of the transfer by the issuer of the
policy. The trustee or escrow agent must transfer the proceeds due to the viator immediately upon
receipt of acknowledgment of the transfer from the insurer. Payment of the proceeds must be
made by means of wire transfer to the viator or by certified check or cashier's check.
Subd. 5. Lump sum payment.
Payment of the proceeds under a viatical settlement must be
made in a lump sum. Retention of a portion of the proceeds by the viatical settlement provider or
escrow agent is not permissible. Payment must not be made by installments unless the viatical
settlement company has purchased an annuity or similar financial instrument issued by a licensed
insurance company or bank.
Subd. 6. Additional payment.
With respect to policies containing a provision for double or
other additional indemnity for accidental death, the additional payment must remain payable to
the beneficiary last named by the viator before entering into the viatical settlement agreement,
or to a beneficiary designated by the viator, other than the viatical settlement provider, or in the
absence of a designation, to the estate of the viator.
Subd. 7. Prohibited payments.
A viatical settlement provider or broker must not pay or
offer to pay a finder's fee, commission, or other compensation to a viator's physician, attorney,
accountant, or other person providing medical, legal, or financial planning services to the viator,
or to any other person acting as an agent of the viator with respect to the viatical settlement.
Subd. 8. Discrimination prohibited.
A viatical settlement provider or broker must not
discriminate in the making of viatical settlements on the basis of race, age, sex, national origin,
creed, religion, occupation, marital or family status, or sexual orientation, or discriminate between
viators with dependents and without.
Subd. 9. Health status contacts.
Contacts for the purpose of determining the health status of
the viator by the viatical settlement provider or broker after the viatical settlement has occurred
must not exceed one every three months for viators with a life expectancy of more than one
year and must not exceed one per month for viators with a life expectancy of one year or less.
The provider or broker must explain the procedure for these contacts at the time the viatical
settlement contract is entered into.
Subd. 10. Prohibited investor solicitation.
Viatical settlement providers and brokers shall
not solicit investors who may influence the treatment of the illness of the viators whose coverage
is the subject of the investment.
Subd. 11. Contract null and void.
Failure to tender the viatical settlement by the date
disclosed to the viator renders the contract null and void.
History: 1995 c 151 s 11