The Florida Senate

626.99235  Disclosures to viatical settlement purchasers; misrepresentations.--

(1)  No person shall misrepresent the nature of the return or the duration of time to obtain the return of any investment related to one or more viatical settlements sold by a viatical settlement provider or related provider trust.

(2)  The viatical settlement provider and the viatical settlement sales agent, themselves or through another person, shall provide in writing the following disclosures to any viatical settlement purchaser or purchaser prospect:

(a)  That the return represented as being available under the viatical settlement purchase agreement is directly tied to the projected life span of one or more insureds.

(b)  If a return is represented, the disclosure shall indicate the projected life span of the insured or insureds whose life or lives are tied to the return.

(c)  If required by the terms of the viatical settlement purchase agreement, that the viatical settlement purchaser shall be responsible for the payment of insurance premiums on the life of the insured, late or surrender fees, or other costs related to the life insurance policy on the life of the insured or insureds which may reduce the return.

(d)  The amount of any trust fees, commissions, deductions, or other expenses, if any, to be charged to the viatical settlement purchaser.

(e)  The name and address of the person responsible for tracking the insured.

(f)  That group policies may contain limitations or caps in the conversion rights, that additional premiums may have to be paid if the policy is converted, and that the party responsible for the payment of such additional premiums shall be identified.

(g)  That the life expectancy and rate of return are only estimates and cannot be guaranteed.

(h)  That the purchase of a viatical settlement contract should not be considered a liquid purchase, since it is impossible to predict the exact timing of its maturity and the funds may not be available until the death of the insured.

(i)  The name and address of the person with the responsibility for paying the premium until the death of the insured.

The written disclosure required under this subsection shall be conspicuously displayed in any viatical settlement purchase agreement, and in any solicitation material furnished to the viatical settlement purchaser by such viatical settlement provider, related provider trust, or person, and shall be in contrasting color and in not less than 10-point type or no smaller than the largest type on the page if larger than 10-point type. The department is authorized to adopt by rule the disclosure form to be used. The disclosures need not be furnished in an invitation to inquire, the objective of which is to create a desire to inquire further about entering into a viatical settlement purchase agreement. The invitation to inquire may not quote rates of return, may not include material attendant to the execution of any specific viatical settlement purchase agreement, and may not relate to any specific viator.

(3)  The requirements of this section also apply to purchases made from any person other than the provider who effectuated the viatical settlement contract which are the subject of a viatical settlement purchase agreement.

History.--s. 5, ch. 98-164; s. 6, ch. 99-212; s. 3, ch. 2001-207; s. 3, ch. 2001-247.