Senate Bill 1956er
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1
2 An act relating to viatical settlements;
3 amending s. 626.9911, F.S.; redefining the
4 terms "viatical settlement contract," "viatical
5 settlement provider," "viator," "related
6 provider trust," and "viatical settlement
7 purchaser"; defining the terms "viaticated
8 policy," "related form," "special purpose
9 entity," and "financing entity"; amending s.
10 626.9912, F.S.; requiring additional
11 information for license applications; amending
12 s. 626.9921, F.S.; providing for additional
13 forms; amending s. 626.9922, F.S.; revising
14 recordkeeping time requirements; defining the
15 term "home office"; providing that records be
16 made available; creating s. 626.99236, F.S.;
17 providing for disclosure to viatical settlement
18 purchasers; providing for rescission of
19 agreements; amending s. 626.9924, F.S.;
20 providing for notice of viaticated policies;
21 requiring notice of transfer of ownership or
22 change in beneficiary within a specified period
23 of time; creating s. 626.99245, F.S.; providing
24 for the regulation of interstate conflicts;
25 amending s. 626.9925, F.S.; providing
26 additional rulemaking authority; amending s.
27 626.99275, F.S.; providing criminal penalties;
28 creating s. 626.99278, F.S.; requiring the
29 adoption of an anti-fraud plan; creating s.
30 626.99285, F.S.; providing for the
31 applicability of the Insurance Code; creating
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1 s. 626.99287, F.S.; providing for the
2 contestability of viaticated policies; creating
3 626.99295, F.S.; providing for a grace period
4 for unlicensed viatical settlement providers
5 and viatical settlement brokers; amending s.
6 626.9915, F.S.; allowing a provider whose
7 license is suspended or revoked to continue to
8 maintain and service viaticated policies if the
9 department approves; providing an
10 appropriation; providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsections (5), (6), (7), (8), and (10) of
15 section 626.9911, Florida Statutes, are amended and
16 subsections (12), (13), (14), and (15) are added to that
17 section to read:
18 626.9911 Definitions.--As used in this act, the term:
19 (5) "Viatical settlement contract" means a written
20 agreement entered into between a viatical settlement provider,
21 or its related provider trust, and a viator. The viatical
22 settlement contract includes an agreement to transfer
23 ownership or change the beneficiary designation of a life
24 insurance policy at a later date, regardless of the date that
25 compensation is paid to the viator. The agreement must
26 establish the terms under which the viatical settlement
27 provider will pay compensation or anything of value, which
28 compensation or value is less than the expected death benefit
29 of the insurance policy or certificate, in return for the
30 viator's assignment, transfer, sale, devise, or bequest of the
31 death benefit or ownership of all or a portion of the
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1 insurance policy or certificate of insurance to the viatical
2 settlement provider. A viatical settlement contract also
3 includes a contract for a loan or other financial transaction
4 secured primarily by an individual or group life insurance
5 policy, other than a loan by a life insurance company pursuant
6 to the terms of the life insurance contract, or a loan secured
7 by the cash value of a policy.
8 (6) "Viatical settlement provider" means a person who,
9 in this state, from this state, or with a resident of this
10 state, effectuates a viatical settlement contract. The term
11 does not include:
12 (a) Any bank, savings bank, savings and loan
13 association, credit union, or other licensed lending
14 institution that takes an assignment of a life insurance
15 policy as collateral for a loan;
16 (b) A life and health insurer that has lawfully issued
17 a life insurance policy that provides accelerated benefits to
18 terminally ill policyholders or certificateholders; or
19 (c) Any natural person who enters into no more than
20 one viatical settlement contract with a viator in 1 calendar
21 year, unless such natural person has previously been licensed
22 under this act or is currently licensed under this act.
23 (d) A trust that meets the definition of a "related
24 provider trust."
25 (e) A viatical settlement provider, who from this
26 state, enters into a viatical settlement purchase agreement
27 with a purchaser who is resident of a state, other than
28 Florida, which has enacted statutes or promulgated regulations
29 governing viatical settlement purchase agreements. Such
30 viatical settlement purchase agreements shall be governed in
31 the effectuation of that viatical settlement purchase
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1 agreement, under the statutes and regulations governing
2 viatical settlement purchase agreements in the purchaser's
3 state of residence.
4 (f) A viatical settlement provider who, from this
5 state, enters into a viatical settlement contract with a
6 viator who is resident of a state, other than Florida, which
7 has enacted statutes or promulgated regulations governing
8 viatical settlement contracts. Such viatical settlement
9 contracts shall be governed in the effectuation of that
10 viatical settlement contract, under the statutes and
11 regulations governing viatical settlement contracts in the
12 viator's state of residence.
13 (e)(g) A viator in this state.
14 (f)(h) A viatical settlement purchaser.
15 (g) A financing entity.
16 (7) "Viator" means the owner of a life insurance
17 policy or a certificateholder under a group policy insuring
18 the life of an individual with a catastrophic or
19 life-threatening illness or condition who enters or seeks to
20 enter into a viatical settlement contract. This term does not
21 include a viatical settlement purchaser or a viatical
22 settlement provider or any person acquiring a policy or
23 interest in a policy from a viatical settlement provider, nor
24 does it include an independent third-party trustee or escrow
25 agent.
26 (8) "Related provider trust" means a trust established
27 by a viatical settlement provider for the sole purpose of
28 entering into or owning viatical settlement contracts. This
29 term does not include an independent third-party trustee or
30 escrow agent or a trust that does not enter into agreements
31 with a viator viatical settlement purchaser. A related
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1 provider trust shall be subject to all provisions of this act
2 that apply to the viatical settlement provider who established
3 the related provider trust, except s. 626.9912, which shall
4 not be applicable. A viatical settlement provider may
5 establish no more than one related provider trust, and the
6 sole trustee of such related provider trust shall be the
7 viatical settlement provider licensed under s. 626.9912. The
8 name of the licensed viatical settlement provider shall be
9 included within the name of the related provider trust.
10 (10) "Viatical settlement purchaser" means a person,
11 other than a licensee under this part, an accredited investor
12 as defined in Rule 501, Regulation D of the Securities Act
13 Rules, or a qualified institutional buyer as defined by Rule
14 144(a) of the Federal Securities Act, or a special purpose
15 entity which is created solely to act as a financing source
16 for the viatical settlement provider, who gives a sum of money
17 as consideration for a life insurance policy or an equitable
18 or legal interest in the death benefits of a life insurance
19 policy which has been or will be the subject of a viatical
20 settlement contract, for the purpose of deriving an economic
21 benefit. The above references to Rule 501, Regulation D and
22 Rule 144(a) of the Federal Securities Act are used strictly
23 for defining purposes and shall not be interpreted in any
24 other manner. Any person who claims to be an accredited
25 investor shall sign an affidavit stating that he or she is an
26 accredited investor, the basis of that claim, and that he or
27 she understands that as an accredited investor he or she will
28 not be entitled to certain protections of the Viatical Act.
29 This affidavit must be kept with other documents required to
30 be maintained by this act.
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1 (11) "Viatical settlement sales agent" means a person
2 other than a licensed viatical settlement provider who
3 arranges the purchase through a viatical settlement purchase
4 agreement of a life insurance policy or an interest in a life
5 insurance policy.
6 (12) "Viaticated policy" means a life insurance
7 policy, or a certificate under a group policy, which is the
8 subject of a viatical settlement contract.
9 (13) "Related form" means any form, created by or on
10 behalf of a licensee, which a viator or viatical settlement
11 purchaser is required to sign or initial. The forms include,
12 but are not limited to, a power of attorney, a release of
13 medical information form, a suitability questionnaire, a
14 disclosure document, or any addendum, schedule, or amendment
15 to a viatical settlement contract or viatical settlement
16 purchase agreement considered necessary by a provider to
17 effectuate a viatical settlement transaction.
18 (14) "Special purpose entity" means an entity
19 established by a licensed viatical settlement provider, which
20 may be a corporation, partnership, trust, or other similar
21 entity formed solely to act as a vehicle to permit a lender to
22 the provider to access institutional capital markets for the
23 provider. A special purpose entity shall not enter into a
24 viatical settlement contract or a viatical settlement purchase
25 agreement.
26 (15) "Financing entity" means an underwriter,
27 placement agent, lender, purchaser of securities, or purchaser
28 of a policy or certificate from a viatical settlement
29 provider, credit enhancer, or any person that may be a party
30 to a viatical settlement contract and that has direct
31 ownership in a policy or certificate that is the subject of a
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1 viatical settlement contract, but whose sole activity related
2 to the transaction is providing funds or credit enhancement to
3 effect the viatical settlement and who has an agreement in
4 writing with a licensed viatical settlement provider to act as
5 a participant in a financing transaction. The term does not
6 include a nonaccredited investor or other natural person.
7 Section 2. Subsection (1), paragraph (f) of subsection
8 (3), subsection (4), and paragraph (b) of subsection (5) of
9 section 626.9912, Florida Statutes, are amended to read:
10 626.9912 Viatical settlement provider license
11 required; application for license.--
12 (1) After July 1, 1996, A person may not perform the
13 functions of a viatical settlement provider as defined in this
14 act or enter into or solicit a viatical settlement contract
15 without first having obtained a license from the department.
16 (3) In the application, the applicant must provide all
17 of the following:
18 (f) All applications, viatical settlement contract
19 forms, viatical settlement purchase agreement forms, escrow
20 forms rating manuals, and other related forms proposed to be
21 used by the applicant.
22 (4) The department may not issue a license to an
23 entity other than a natural person if it is not satisfied that
24 all officers, directors, employees, stockholders, and
25 partners, and any other persons who exercise or have the
26 ability to exercise effective control of the entity or who
27 have the ability to influence the transaction of business by
28 the entity meet the standards of this act and have not
29 violated any provision of this act or rules of the department
30 related to the business of viatical settlement contracts or
31 viatical settlement purchase agreements.
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1 (5) Upon the filing of a sworn application and the
2 payment of the license fee, the department shall investigate
3 each applicant and may issue the applicant a license if the
4 department finds that the applicant:
5 (b) Is competent and trustworthy and intends to act in
6 good faith in the business authorized by the license applied
7 for; however, for purposes of this act, including this
8 paragraph, a person shall not be deemed to be incompetent and
9 untrustworthy solely for any felony committed more than 5
10 years before licensure if the person has had his or her civil
11 rights restored by the Governor and Cabinet with respect to
12 such felony.
13 Section 3. Section 626.9921, Florida Statutes, is
14 amended to read:
15 626.9921 Filing of forms; required procedures;
16 approval.--
17 (1) A viatical settlement contract form, viatical
18 settlement purchase agreement form, escrow form, or related
19 form may be used in this state only after the viatical
20 settlement provider or any related provider trust has filed
21 the form with the department and only after the form has been
22 approved by the department.
23 (2) The viatical settlement contract form, viatical
24 settlement purchase agreement form, escrow form, or related
25 form must be filed with the department at least 60 days before
26 its use. The A contract form or related form is considered
27 approved on the 60th day after its date of filing unless it
28 has been previously disapproved by the department. The
29 department must disapprove a viatical settlement contract
30 form, viatical settlement purchase agreement form, escrow
31 form, or related form that is unreasonable, contrary to the
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1 public interest, discriminatory, or misleading or unfair to
2 the viator or the purchaser.
3 (3) If a viatical settlement provider elects to use a
4 related provider trust in accordance with this act, the
5 viatical settlement provider shall file notice of its
6 intention to use a related provider trust with the department,
7 including a copy of the trust agreement of the related
8 provider trust. The organizational documents of the trust must
9 be submitted to and approved by the department before the
10 transacting of business by the trust.
11 (4) The department may adopt, by rule, standardized
12 forms to be used by licensees, at the licensee's option in
13 place of separately approved forms.
14 Section 4. Subsection (2) of section 626.9922, Florida
15 Statutes, is amended and subsections (3), (4), and (5) are
16 added to that section to read:
17 626.9922 Examination.--
18 (1) The department may examine the business and
19 affairs of any licensee or applicant for a license. The
20 department may order any licensee or applicant to produce any
21 records, books, files, advertising and solicitation materials,
22 or other information and may take statements under oath to
23 determine whether the licensee or applicant is in violation of
24 the law or is acting contrary to the public interest. The
25 expenses incurred in conducting any examination or
26 investigation must be paid by the licensee or applicant.
27 Examinations and investigations must be conducted as provided
28 in chapter 624, and licensees are subject to all applicable
29 provisions of the insurance code.
30 (2) All accounts, books and records, documents, files,
31 contracts, and other information relating to all transactions
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1 of viatical settlement contracts or viatical settlement
2 purchase agreements must be maintained by the licensee for a
3 period of at least 3 years after the death of the insured and
4 must be available to the department for inspection during
5 reasonable business hours.
6 (3) All such records or accurate copies of such
7 records must be maintained at the licensee's home office. As
8 used in this section, the term "home office" means the
9 principal place of business and any other single storage
10 facility, the street address of which shall be disclosed to
11 the department within 20 days after its initial use, or within
12 20 days of the effective date of this subsection.
13 (4) The originals of records required to be maintained
14 under this section must be made available to the department
15 for examination at the department's request.
16 Section 5. Section 626.99236, Florida Statutes, is
17 created to read:
18 626.99236 Further disclosures to viatical settlement
19 purchasers.--
20 (1) No later than 5 days prior to the assignment,
21 transfer, sale, devise, or bequest of the death benefit or
22 ownership of all or a portion of the insurance policy or
23 certificate of insurance to the purchaser, the viatical
24 settlement provider, itself or through another person, shall
25 provide in writing the following disclosures to any viatical
26 settlement purchaser:
27 (a) All the life expectancy certifications obtained by
28 the provider.
29 (b) The name and address of the insurance company, the
30 policy number, and the date of original issue of the
31 viaticated policy.
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1 (c) The experience and qualifications of the person
2 issuing the life expectancy certification, and that person's
3 relationship to the viatical settlement provider, the viatical
4 settlement broker, the viatical settlement sales agent, and
5 the viator.
6 (d) The name and address of any person providing
7 escrow services, and that person's relationship to the
8 viatical settlement provider, the viatical settlement broker,
9 the viatical settlement sales agent, and the viator.
10 (e) The type of life insurance policy offered or sold,
11 including a statement as to whether the policy is whole life,
12 term life, universal life, or a group policy certificate; a
13 statement as to whether the policy is in lapse status or has
14 lapsed in the last two years; and a statement as to whether
15 the purchaser is entitled to benefits contained in the policy
16 other than the death benefit of the policy.
17 (f) The procedure to be used by the provider to
18 provide the status of the health condition of the insured to a
19 purchaser.
20 (2) The viatical settlement purchase agreement is
21 voidable by the purchaser at anytime within three days after
22 the disclosures mandated by this section are received by the
23 purchaser.
24 (3) At the time the disclosures in subsection (1) are
25 made, the viatical settlement purchaser shall be advised to
26 seek independent financial advice from a person not
27 compensated by the viatical settlement provider or viatical
28 settlement broker or the viatical settlement sales agent. The
29 viatical settlement purchaser shall sign an affidavit that he
30 or she has received the disclosures and understands their
31 importance.
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1 Section 6. Subsection (1) of section 626.9924, Florida
2 Statutes, is amended, and subsections (7), (8), and (9) are
3 added to that section to read:
4 626.9924 Viatical settlement contracts; procedures;
5 rescission.--
6 (1) A viatical settlement provider entering into a
7 viatical settlement contract with any viator must first obtain
8 a witnessed document in which the viator consents to the
9 viatical settlement contract, acknowledges the catastrophic or
10 life-threatening illness, represents that he or she has a full
11 and complete understanding of the viatical settlement contract
12 and the benefits of the life insurance policy, releases his or
13 her medical records, and acknowledges that he or she has
14 entered into the viatical settlement contract freely and
15 voluntarily.
16 (7) At any time during the contestable period, within
17 20 days after a viator executes documents necessary to
18 transfer rights under an insurance policy or within 20 days of
19 any agreement, option, promise, or any other form of
20 understanding, express or implied, to viaticate the policy,
21 the provider must give notice to the insurer of the policy
22 that the policy has or will become a viaticated policy. The
23 notice must be accompanied by the documents required by s.
24 626.99287(5)(a) in their entirety.
25 (8) If the owner of the insurance policy is not the
26 insured, the provider shall notify the insured that the policy
27 has become the subject of a viatical settlement contract
28 within 20 days after the transfer of rights under the
29 contract.
30 (9) If the provider transfers ownership or changes the
31 beneficiary of the insurance policy, the provider must
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1 communicate the initial change in ownership or beneficiary to
2 the insured within 20 days after the change.
3 Section 7. Section 626.99245, Florida Statutes, is
4 created to read:
5 626.99245 Conflict of regulation of viaticals.--
6 (1) A viatical settlement provider who from this state
7 enters into a viatical settlement purchase agreement with a
8 purchaser who is resident of another state that has enacted
9 statutes or adopted regulations governing viatical settlement
10 purchase agreements, shall be governed in the effectuation of
11 that viatical settlement purchase agreement by the statutes
12 and regulations of the purchaser's state of residence. If the
13 state in which the purchaser is a resident has not enacted
14 statutes or regulations governing viatical settlement purchase
15 agreements, the provider shall give the purchaser notice that
16 neither Florida nor his or her state regulates the transaction
17 upon which he or she is entering. For transactions in these
18 states, however, the viatical settlement provider is to
19 maintain all records required as if the transactions were
20 executed in Florida. However, the forms used in those states
21 need not be approved by the department.
22 (2) A viatical settlement provider who from this state
23 enters into a viatical settlement contract with a viator who
24 is resident of another state that has enacted statutes or
25 adopted regulations governing viatical settlement contracts
26 shall be governed in the effectuation of that viatical
27 settlement contract by the statutes and regulations of the
28 viator's state of residence. If the state in which the viator
29 is a resident has not enacted statutes or regulations
30 governing viatical settlement agreements, the provider shall
31 give the viator notice that neither Florida nor his or her
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1 state regulates the transaction upon which he or she is
2 entering. For transactions in those states, however, the
3 viatical settlement provider is to maintain all records
4 required as if the transactions were executed in Florida. The
5 forms used in those states need not be approved by the
6 department.
7 Section 8. Section 626.9925, Florida Statutes, is
8 amended to read:
9 626.9925 Rules.--The department may adopt rules to
10 administer implement this act, including rules establishing
11 standards for evaluating advertising by licensees; and rules
12 providing for the collection of data, for disclosures to
13 viators or purchasers, and for the reporting of life
14 expectancies; and rules defining terms used in this act and
15 prescribing recordkeeping requirements relating to executed
16 viatical settlement contracts and viatical settlement purchase
17 agreements.
18 Section 9. Section 626.99275, Florida Statutes, is
19 amended to read:
20 626.99275 Prohibited practices; penalties.--
21 (1) It is unlawful for any person:
22 (a)(1) To knowingly enter into, broker, or otherwise
23 deal in a viatical settlement contract the subject of which is
24 a life insurance policy, knowing that the policy was obtained
25 by presenting materially false information concerning any fact
26 material to the policy or by concealing, for the purpose of
27 misleading another, information concerning any fact material
28 to the policy, where the viator or the viator's agent intended
29 to defraud the policy's issuer that was obtained by means of a
30 false, deceptive, or misleading application for the life
31 insurance policy.
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1 (b)(2) In the solicitation or sale of a viatical
2 settlement purchase agreement:
3 1.(a) To employ any device, scheme, or artifice to
4 defraud;
5 2.(b) To obtain money or property by means of an
6 untrue statement of a material fact or by any omission to
7 state a material fact necessary in order to make the
8 statements made, in light of the circumstances under which
9 they were made, not misleading; or
10 3.(c) To engage in any transaction, practice, or
11 course of business which operates or would operate as a fraud
12 or deceit upon a person.
13 (c) To knowingly engage in any transaction, practice,
14 or course of business intending thereby to avoid the notice
15 requirements of s. 626.9924(7).
16 (2) A person who violates any provision of this
17 section commits:
18 (a) A felony of the third degree, punishable as
19 provided in s. 775.082, s. 774.083, or s. 775.084, if the
20 insurance policy involved is valued at any amount less than
21 $20,000.
22 (b) A felony of the second degree, punishable as
23 provided in s. 775.082, s. 774.083, or s. 775.084, if the
24 insurance policy involved is valued at $20,000 or more, but
25 less than $100,000.
26 (c) A felony of the first degree, punishable as
27 provided in s. 775.082, s. 774.083, or s. 775.084, if the
28 insurance policy involved is valued at $100,000 or more.
29 Section 10. Section 626.99278, Florida Statutes, is
30 created to read:
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1 626.99278 Viatical provider anti-fraud plan.--Every
2 licensed viatical settlement provider and viatical settlement
3 broker must adopt an anti-fraud plan and file it with the
4 Division of Insurance Fraud of the department on or before
5 December 1, 2000. Each anti-fraud plan shall include:
6 (1) A description of the procedures for detecting and
7 investigating possible fraudulent acts and procedures for
8 resolving material inconsistencies between medical records and
9 insurance applications;
10 (2) A description of the procedures for the mandatory
11 reporting of possible fraudulent insurance acts to the
12 Division of Insurance Fraud of the department;
13 (3) A description of the plan for anti-fraud education
14 and training of its underwriters or other personnel; and
15 (4) A written description or chart outlining the
16 organizational arrangement of the anti-fraud personnel who are
17 responsible for the investigation and reporting of possible
18 fraudulent insurance acts, and investigating unresolved
19 material inconsistencies between medical records and insurance
20 applications.
21 Section 11. Section 626.99285, Florida Statutes, is
22 created to read:
23 626.99285 Applicability of Insurance Code.--In
24 addition to other applicable provisions cited in the Insurance
25 Code, the department has the authority granted under ss.
26 624.310, 626.901, and 626.989 to regulate viatical settlement
27 providers, viatical settlement brokers, viatical settlement
28 sales agents, viatical settlement contracts, viatical
29 settlement purchase agreements, and viatical settlement
30 transactions.
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1 Section 12. Section 626.99287, Florida Statutes, is
2 created to read:
3 626.99287 Contestability of viaticated
4 policies.--Except as hereinafter provided, if a viatical
5 settlement contract is entered into within the 2-year period
6 commencing with the date of issuance of the insurance policy
7 or certificate to be acquired, the viatical settlement
8 contract is void and unenforceable by either party.
9 Notwithstanding this limitation, such a viatical settlement
10 contract is not void and unenforceable if:
11 (1) The policy was issued upon the owner's exercise of
12 conversion rights arising out of a group or term policy;
13 (2) The owner of the policy is a charitable
14 organization exempt from taxation under 26 U.S.C. s.
15 501(c)(3);
16 (3) The owner of the policy is not a natural person;
17 (4) The viatical settlement contract was entered into
18 before July 1, 2000;
19 (5) The viator certifies by producing independent
20 evidence to the viatical settlement provider that one or more
21 of the following conditions have been met within the 2-year
22 period;
23 (a)1. The viator or insured is diagnosed with an
24 illness or condition that is either;
25 a. Catastrophic or life threatening; or
26 b. Requires a course of treatment for a period of at
27 least 3 years of long-term care or home-health care; and
28 2. The condition was not known to the insured at the
29 time the life insurance contract was entered into.
30 (b) The viator's spouse dies;
31 (c) The viator divorces his or her spouse;
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1 (d) The viator retires from full-time employment;
2 (e) The viator becomes physically or mentally disabled
3 and a physician determines that the disability prevents the
4 viator from maintaining full-time employment;
5 (f) The owner of the policy was that the insured's
6 employer at the time the policy or certificate was issued and
7 the employment relationship terminated;
8 (g) A final order, judgment, or decree is entered by a
9 court of competent jurisdiction, on the application of a
10 creditor of the viator, adjudicating the viator bankrupt or
11 insolvent, or approving a petition seeking reorganization of
12 the viator or appointing a receiver, trustee, or liquidator to
13 all or a substantial part of the viator's assets; or
14 (h) The viator experiences a significant decrease in
15 income which is unexpected by the viator and which impairs his
16 or her reasonable ability to pay the policy premium.
17
18 If the viatical settlement provider submits to the insurer a
19 copy of the viator's or owner's certification described above
20 then the provider submits a request to the insurer to effect
21 the transfer of the policy or certificate to the viatical
22 settlement provider, the viatical settlement agreement shall
23 not be void or unenforceable by operation of this section. The
24 insurer shall timely respond to such request. Nothing in this
25 section shall prohibit an insurer from exercising its right
26 during the contestability period to contest the validity of
27 any policy on grounds of fraud.
28 Section 13. Section 626.99295, Florida Statutes, is
29 created to read:
30 626.99295 Grace period.--An unlicensed viatical
31 settlement provider or viatical settlement broker that was
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1 legally transacting business in this state on June 30, 2000,
2 may continue to transact such business, in the absence of any
3 orders by the department to the contrary, until the department
4 approves or disapproves the viatical settlement provider's
5 application for licensure if the viatical settlement provider
6 or viatical settlement broker files with the department an
7 application for licensure no later than August 1, 2000, and if
8 the viatical settlement provider or viatical settlement broker
9 complies with all other provisions of this act. Any form for
10 which department approval is required under this part must be
11 filed by August 1, 2000, and may continue to be used until
12 disapproved by the department.
13 Section 14. Subsection (1) of section 626.9915,
14 Florida Statutes, is amended to read:
15 626.9915 Effect of suspension or revocation of
16 viatical settlement provider license; duration of suspension;
17 reinstatement.--
18 (1) When its license is suspended or revoked, the
19 provider must proceed, immediately following the effective
20 date of the suspension or revocation, to conclude the affairs
21 it is transacting under its license. The provider may not
22 solicit, negotiate, advertise, or effectuate new contracts.
23 The department retains jurisdiction over the provider until
24 all contracts have been fulfilled or canceled or have expired.
25 A provider whose license is suspended or revoked may continue
26 to maintain and service viaticated policies subject to the
27 approval of the department.
28 Section 15. Effective July 1, 2000, the sum of
29 $250,000 is appropriated for the 2000-2001 fiscal year from
30 the Insurance Commissioner's Regulatory Trust Fund to the
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1 Department of Insurance to fund four positions for the purpose
2 of carrying out the provisions of this act.
3 Section 16. This act shall take effect July 1, 2000.
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