Florida Senate - 2005 SENATOR AMENDMENT
Bill No. CS for SB 2412
Barcode 750484
CHAMBER ACTION
Senate House
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11 Senator Posey moved the following amendment:
12
13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
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16 and insert:
17 Section 1. Section 626.99271, Florida Statutes, is
18 created to read:
19 626.99271 Viatical fraudulent prevention and
20 control.--
21 (1) FRAUDULENT VIATICAL SETTLEMENT ACTS; INTERFERENCE
22 AND PARTICIPATION OF CONVICTED FELONS PROHIBITED.--
23 (a) A person may not commit a fraudulent viatical
24 settlement act.
25 (b) A person may not knowingly or intentionally
26 interfere with the enforcement of this act or investigations
27 of suspected or actual violation of this section.
28 (c) A person in the business of viatical settlements
29 may not knowingly or intentionally permit any person convicted
30 of a felony involving dishonesty or breach of trust to
31 participate in the business of viatical settlements.
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1 (2) FRAUD WARNING REQUIRED.--
2 (a) Viatical settlement contracts and purchase
3 agreement forms and applications for viatical settlements,
4 regardless of the form of transmission, must contain the
5 following statement or a substantially similar statement:
6
7 Any person who knowingly presents false
8 information in an application for insurance, a
9 viatical settlement contract, or a viatical
10 settlement purchase agreement may be subject to
11 fines.
12
13 (b) The lack of a statement as required in paragraph
14 (a) does not constitute a defense in any prosecution for a
15 fraudulent viatical settlement act.
16 (3) MANDATORY REPORTING OF FRAUDULENT VIATICAL
17 SETTLEMENT ACTS.--
18 (a) A person who engages in the business of viatical
19 settlements who knows or has a reasonable belief that a
20 fraudulent viatical settlement act is being, will be, or has
21 been committed must provide to the Financial Services
22 Commission the information required by, and in a manner
23 prescribed by, the commission.
24 (b) Any other person who knows or has a reasonable
25 belief that a fraudulent viatical settlement act is being,
26 will be, or has been committed may provide to the commission
27 the information required by, and in a manner prescribed by,
28 the commission.
29 (4) IMMUNITY FROM LIABILITY.--
30 (a) Civil liability may not be imposed on and a cause
31 of action may not arise from a person furnishing information
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Florida Senate - 2005 SENATOR AMENDMENT
Bill No. CS for SB 2412
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1 concerning suspected, anticipated, or completed fraudulent
2 acts with respect to viatical settlements or suspected or
3 completed fraudulent insurance acts if the information is
4 provided to or received from:
5 1. The Financial Services Commission or the
6 commission's employees, agents, or representatives;
7 2. Federal, state, or local law enforcement or
8 regulatory officials or their employees, agents, or
9 representatives;
10 3. A person involved in the prevention and detection
11 of fraudulent viatical settlement acts or the agent, employee
12 or representative of the person;
13 4. The National Association of Insurance Commissions
14 (NAIC), National Association of Securities Dealers (NASD), the
15 North American Securities Administrators Association (NASAA),
16 or their employees, agents, or representatives, or other
17 regulatory body overseeing life insurance, viatical
18 settlements, securities, or investment fraud; or
19 5. The life insurer that issued the life insurance
20 policy covering the life of the insured.
21 (b) Paragraph (a) does not apply to statements made
22 with actual malice. In an action brought against a person for
23 filing a report or furnishing other information concerning a
24 fraudulent viatical settlement act or a fraudulent insurance
25 act, the party bringing the action must plead specifically any
26 allegation that paragraph (a) does not apply because the
27 person filing the report or furnishing the information did so
28 with actual malice.
29 (c) A person identified in paragraph (a) is entitled
30 to an award of attorney's fees and costs if he or she is the
31 prevailing party in a civil cause of action for libel,
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1 slander, or any other relevant tort arising out of activities
2 in carrying out this act and the party bringing the action was
3 not substantially justified in doing so. For purposes of this
4 section, a proceeding is "substantially justified" if it had a
5 reasonable basis in law or fact at the time that it was
6 initiated.
7 (d) This section does not abrogate or modify common
8 law or statutory privileges or immunities enjoyed by a person
9 described in paragraph (a).
10 (5) OTHER LAW ENFORCEMENT OR REGULATORY
11 AUTHORITY.--This act does not:
12 (a) Preempt the authority or relieve the duty of other
13 law enforcement or regulatory agencies to investigate,
14 examine, or prosecute suspected violation of law;
15 (b) Prevent or prohibit a person from voluntarily
16 disclosing information concerning viatical settlement fraud to
17 a law enforcement or regulatory agency other than the
18 insurance department; or
19 (c) Limit the powers granted elsewhere by the laws of
20 this state to the commission or an insurance fraud unit to
21 investigate and examine possible violations of law and to take
22 appropriate action against wrongdoers.
23 (6) VIATICAL SETTLEMENT ANTI-FRAUD
24 INITIATIVES.--Viatical settlement providers and viatical
25 settlement brokers must have active anti-fraud initiatives
26 reasonably calculated to detect, prosecute, and prevent
27 fraudulent viatical settlement acts. The Financial Services
28 Commission may order, or a licensee may request and the
29 commission may grant, such modifications of the following
30 required initiatives as necessary to ensure an effective
31 anti-fraud program. The modifications may be more or less
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1 restrictive than the required initiatives so long as the
2 modifications may reasonably be expected to accomplish the
3 purpose of this section. Anti-fraud initiatives must include:
4 (a) Fraud investigators, who may be viatical
5 settlement provider or viatical settlement broker employees or
6 independent contractors; and
7 (b) An anti-fraud plan that must be submitted to the
8 commission. The anti-fraud plan must include, but not be
9 limited to, a description of:
10 1. The procedures for detecting and investigating
11 possible fraudulent viatical settlement acts and procedures
12 for resolving material inconsistencies between medical records
13 and insurance applications;
14 2. The procedures for reporting possible fraudulent
15 viatical settlement acts to the commission;
16 3. The plan for anti-fraud education and training of
17 underwriters and other personnel; and
18 4. The chart outlining the organizational arrangement
19 of the anti-fraud personnel who are responsible for the
20 investigation and reporting of possible fraudulent viatical
21 settlement acts and investigating unresolved material
22 inconsistencies between medical records and insurance
23 applications.
24 Section 2. Section 626.99279, Florida Statutes, is
25 created to read:
26 626.99279 Advertising for viatical settlements and
27 viatical settlement purchase agreements.--The Legislature
28 intends this section to provide prospective viators and
29 viatical settlement purchasers with clear and unambiguous
30 statements in the advertisement of viatical settlements and to
31 ensure the clear, truthful, and adequate disclosure of the
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1 benefits, risks, limitations, and exclusions of any viatical
2 settlement contract or viatical settlement purchase agreement
3 bought or sold. The intent of the Legislature is to be
4 accomplished by establishing guidelines and standards of
5 permissible and impermissible conduct in the advertising of
6 viatical settlements. These standards and guidelines are to
7 ensure that product descriptions are presented in a manner
8 that prevents unfair, deceptive, or misleading advertising and
9 is conducive to accurate presentation and description of
10 viatical settlements through the advertising media and
11 material used by viatical settlement licensees.
12 (1) This section applies to any advertising of
13 viatical settlement contracts, viatical purchase agreements,
14 or related products or services intended for dissemination in
15 this state, including Internet advertising viewed by persons
16 located in this state. When disclosure requirements are
17 established under federal regulation, this section shall be
18 interpreted to minimize or eliminate conflict with federal
19 regulation whenever possible.
20 (2) Every viatical settlement licensee shall establish
21 and at all times maintain a system of control over the
22 content, form, and method of dissemination of all
23 advertisements of its contracts, products, and services. All
24 advertisements, regardless of by whom written, created,
25 designed, or presented, are the responsibility of the viatical
26 settlement licensee as well as the individual who created or
27 presented the advertisement. A system of control must include
28 regular routine notification, at least once a year, to agents
29 and others authorized by the viatical settlement licensee who
30 disseminate advertisements of the requirements and procedures
31 for approval before the use of any advertisements not
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1 furnished by the viatical settlement licensee.
2 (3) Advertisements must be truthful and not misleading
3 in fact or by implication. The form and content of an
4 advertisement of a viatical settlement contract or viatical
5 settlement purchase agreement, product, or service must be
6 sufficiently complete and clear so as to avoid deception. It
7 may not have the capacity or tendency to mislead or deceive.
8 Whether an advertisement has the capacity or tendency to
9 mislead or deceive shall be determined by the Financial
10 Services Commission from the overall impression that the
11 advertisement may be reasonably expected to create upon a
12 person of average education or intelligence within the segment
13 of the public to which it is directed.
14 (4) Certain viatical settlement advertisements are
15 deemed false and misleading on their face and are prohibited.
16 False and misleading viatical settlement advertisements
17 include, but are not limited to, the following
18 representations:
19 (a) "Guaranteed," "fully secured," "100 percent
20 secured," "fully insured," "secure," "safe," "backed by rated
21 insurance companies," "backed by federal law," "backed by
22 state law," "backed by state guaranty funds," or similar
23 representations;
24 (b) "No risk," "minimal risk," "low risk," "no
25 speculation," "no fluctuation," or similar representations;
26 (c) "Qualified or approved for individual retirement
27 accounts (IRAs), Roth IRAs, 401(k) plans, simplified employee
28 pensions (SEP), 403(b), Keogh plans, TSA, other retirement
29 account rollovers," "tax deferred," or similar
30 representations;
31 (d) Use of the word "guaranteed" to describe the fixed
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1 return, annual return, principal, earnings, profits,
2 investment, or similar representations;
3 (e) "No sales charges or fees" or similar
4 representations;
5 (f) "High yield," "superior return," "excellent
6 return," "high return," "quick profit," or similar
7 representations; and
8 (g) Purported favorable representations or
9 testimonials about the benefits of viatical settlement
10 contracts or viatical settlement purchase agreements as an
11 investment, taken out of context from newspapers, trade
12 papers, journals, radio and television programs, and all other
13 forms of print and electronic media.
14 (5) The information required to be disclosed under
15 this section may not be minimized, rendered obscure, or
16 presented in an ambiguous fashion or intermingled with the
17 text of the advertisement so as to be confusing or misleading.
18 (a) An advertisement may not:
19 1. Omit material information or use words, phrases,
20 statements, references, or illustrations if the omission or
21 use has the capacity, tendency, or effect of misleading or
22 deceiving viators, purchasers, or prospective purchasers as to
23 the nature or extent of any benefit, loss covered, premium
24 payable, or state or federal tax consequence. The fact that
25 the viatical settlement contract or viatical settlement
26 purchase agreement offered is made available for inspection
27 before consummation of the sale, that an offer is made to
28 refund the payment if the viator is not satisfied, or that the
29 viatical settlement contract or viatical settlement purchase
30 agreement includes a "free look" period that satisfies or
31 exceeds legal requirements does not remedy misleading
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1 statements.
2 2. Use the name or title of a life insurance company
3 or a life insurance policy unless the advertisement has been
4 approved by the insurer.
5 3. Represent that premium payments will not be
6 required to be paid on the life insurance policy that is the
7 subject of a viatical settlement contract or viatical
8 settlement purchase agreement in order to maintain that
9 policy, unless that is the fact.
10 4. State or imply that interest charged on an
11 accelerated death benefit or a policy loan is unfair,
12 inequitable, or in any manner an incorrect or improper
13 practice.
14 (b) The words "free," "no cost," "without cost," "no
15 additional cost," and "at no extra cost" or words of similar
16 import may not be used with respect to any benefit or service
17 unless true. An advertisement may specify the charge for a
18 benefit or a service or may state that a charge is included in
19 the payment or use other appropriate language.
20 (c) Testimonials, appraisals, or analysis used in
21 advertisements must be genuine; represent the current opinion
22 of the author; be applicable to the viatical settlement
23 contract or viatical settlement purchase agreement, product,
24 or service advertised, if any; and be accurately reproduced
25 with sufficient completeness to avoid misleading or deceiving
26 prospective viators or purchasers as to the nature or scope of
27 the testimonials, appraisal, analysis, or endorsement. In
28 using testimonials, appraisals, or analysis, the viatical
29 settlement licensee makes as its own all the statements
30 contained therein, and the statements are subject to all the
31 provisions of this section.
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1 1. If the individual making a testimonial, appraisal,
2 analysis, or endorsement has a financial interest in the
3 viatical settlement provider or related entity as a
4 stockholder, director, officer, employee, or otherwise, or
5 receives any benefit directly or indirectly other than
6 required union scale wages, that fact must be prominently
7 disclosed in the advertisement.
8 2. An advertisement may not state or imply that a
9 viatical settlement contract or viatical settlement purchase
10 agreement, benefit, or service has been approved or endorsed
11 by a group of individuals, society, association, or other
12 organization unless that is the fact and unless any
13 relationship between an organization and the viatical
14 settlement licensee is disclosed. If the entity making the
15 endorsement or testimonial is owned, controlled, or managed by
16 the viatical settlement licensee, or receives any payment or
17 other consideration from the viatical settlement licensee for
18 making an endorsement or testimonial, that fact must be
19 disclosed in the advertisement.
20 3. When an endorsement refers to benefits received
21 under a viatical settlement contract or viatical settlement
22 purchase agreement, all pertinent information must be retained
23 for a period of 5 years after its use.
24 (6) An advertisement may not contain statistical
25 information unless it accurately reflects recent and relevant
26 facts. The source of all statistics used in an advertisement
27 must be identified.
28 (7) An advertisement may not disparage insurers,
29 viatical settlement providers, viatical settlement brokers,
30 viatical settlement investment agents, insurance producers,
31 policies, services, or methods of marketing.
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1 (8) The name of the viatical settlement licensee must
2 be clearly identified in all advertisements about the licensee
3 or its viatical settlement contracts or viatical settlement
4 purchase agreements, products, or services, and if any
5 specific viatical settlement contract or viatical settlement
6 purchase agreement is advertised, the viatical settlement
7 contract or viatical settlement purchase agreement shall be
8 identified either by form number or some other appropriate
9 description. If an application is part of the advertisement,
10 the name of the viatical settlement provider must be shown on
11 the application.
12 (9) An advertisement may not use a trade name, group
13 designation, name of the parent company of a viatical
14 settlement licensee, name of a particular division of the
15 viatical settlement licensee, service mark, slogan, symbol, or
16 other device or reference without disclosing the name of the
17 viatical settlement licensee if the advertisement would have
18 the capacity or tendency to mislead or deceive as to the true
19 identity of the viatical settlement licensee or to create the
20 impression that a company other that the viatical settlement
21 licensee would have any responsibility for the financial
22 obligation under a viatical settlement contract or viatical
23 settlement purchase agreement.
24 (10) An advertisement may not use any combination of
25 words, symbols, or physical materials that by their content,
26 phraseology, shape, color, or other characteristics are so
27 similar to a combination of words, symbols, or physical
28 materials used by a government program or agency, or otherwise
29 appear to be of such nature, that they tend to mislead
30 prospective viators or purchasers into believing that the
31 solicitation is in some manner connected with a government
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1 program or agency.
2 (11) An advertisement may state that a viatical
3 settlement licensee is licensed in the state where the
4 advertisement appears provided that it does not exaggerate
5 that fact or suggest or imply that competing viatical
6 settlement licensees may not be so licensed. The advertisement
7 may ask the audience to consult the licensee's website or
8 contact the Department of Insurance to find out if the state
9 requires licensing and, if so, whether the viatical settlement
10 provider, viatical settlement broker, or viatical settlement
11 investment agent is licensed.
12 (12) An advertisement may not create the impression
13 that the viatical settlement provider, its financial condition
14 or status, the payment of its claims, or the merits,
15 desirability, or advisability of its viatical settlement
16 contracts or viatical settlement purchase agreement forms are
17 recommended or endorsed by any government entity.
18 (13) The name of the actual licensee must be stated in
19 all of its advertisements. An advertisement may not use a
20 trade name, any group designation, the name of any affiliate
21 or controlling entity of the licensee, service mark, slogan,
22 symbol, or other device in a manner that would have the
23 capacity or tendency to mislead or deceive as to the true
24 identity of the actual licensee or create the false impression
25 that an affiliate or controlling entity would have any
26 responsibility for the financial obligation of the licensee.
27 (14) An advertisement may not directly or indirectly
28 create the impression that any division or agency of the state
29 or of the United States Government endorses, approves, or
30 favors:
31 (a) Any viatical settlement licensee or its business
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1 practices or methods of operation;
2 (b) The merits, desirability, or advisability of any
3 viatical settlement contract or viatical settlement purchase
4 agreement;
5 (c) Any viatical settlement contract or viatical
6 settlement purchase agreement; or
7 (d) Any life insurance policy or life insurance
8 company.
9 (15) If the advertiser emphasizes the speed with which
10 the viatication will occur, the advertising must disclose the
11 average time frame from completed application to the date of
12 offer and from acceptance of the offer to receipt of the funds
13 by the viator.
14 (16) If the advertising emphasizes the dollar amounts
15 available to viators, the advertising must disclose the
16 average purchase price as a percent of face value obtained by
17 viators contracting with the licensee during the past 6
18 months.
19 Section 3. Subsection (2) of section 626.99235,
20 Florida Statutes, is amended to read:
21 626.99235 Disclosures to viatical settlement
22 purchasers; misrepresentations.--
23 (2) A viatical settlement provider or its viatical
24 settlement investment agent must provide the viatical
25 settlement purchaser with at least the following disclosures
26 before the date the viatical settlement purchase agreement is
27 signed by all parties. The disclosures must be conspicuously
28 displayed in any viatical purchase contract or in a separate
29 document signed by the viatical settlement purchaser and
30 viatical settlement provider or viatical settlement investment
31 agent, and must make the following disclosure to the viatical
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1 settlement purchaser:
2 (a) That the purchaser will receive no returns
3 including dividends or interest until the insured dies.
4 (b) That the actual annual rate of return on a
5 viatical settlement contract is dependent upon an accurate
6 projection of the insured's life expectancy and the actual
7 date of the insured's death and that an annual "guaranteed"
8 rate of return is not determinable.
9 (c) That the viaticated life insurance contract should
10 not be considered a liquid purchase since it is impossible to
11 predict the exact timing of its maturity and the funds
12 probably are not available until the death of the insured and
13 that there is no established secondary market for resale of
14 these products by the purchaser.
15 (d) That the purchaser may lose all benefits or may
16 receive substantially reduced benefits if the insurer goes out
17 of business during the term of the viatical investment.
18 (e) That the purchaser is responsible for payment of
19 the insurance premium or other costs related to the policy, if
20 required by the terms of the viatical purchase agreement; that
21 the payments may reduce the purchaser's return; and, if a
22 party other than the purchaser is responsible for the payment,
23 the name and address of that party.
24 (f) That the purchaser is responsible for payment of
25 the insurance premiums or other costs related to the policy if
26 the insured returns to health and the amount of such premiums,
27 if applicable.
28 (g) The name and address of any person providing
29 escrow services and the relationship to the broker.
30 (h) The amount of any trust fees or other expenses to
31 be charged to the viatical settlement purchaser.
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1 (i) Whether the purchaser is entitled to a refund of
2 all or part of his or her investment under the settlement
3 contract if the policy is later determined to be null and
4 void.
5 (j) That group policies may contain limitations or
6 caps in the conversion rights; that additional premiums may
7 have to be paid if the policy is converted; the party
8 responsible for the payment of the additional premiums; and,
9 if a group policy is terminated and replaced by another group
10 policy, that there may be no right to convert the original
11 coverage.
12 (k) The risks associated with policy contestability,
13 including, but not limited to, the risk that the purchaser
14 will have no claim or only a partial claim to death benefits
15 if the insurer rescinds the policy within the contestability
16 period.
17 (l) Whether the purchaser will be the owner of the
18 policy in addition to being the beneficiary, and if the
19 purchaser is the beneficiary only and not also the owner, the
20 special risks associated with that status, including, but not
21 limited to, the risk that the beneficiary may be changed or
22 the premium may not be paid.
23 (m) The experience and qualifications of the person
24 who determines the life expectancy of the insured, such as
25 in-house staff, independent physicians, and specialty firms
26 that weigh medical and actuarial data; the information this
27 projection is based on; and the relationship of the projection
28 maker to the viatical settlement provider, if any.
29
30 Disclosure to an investor must include distribution of a
31 brochure describing the process of investment in viatical
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1 settlements. The NAIC's form for the brochure must be used
2 unless one is developed by the commission. The viatical
3 settlement provider and the viatical settlement sales agent,
4 themselves or through another person, shall provide in writing
5 the following disclosures to any viatical settlement purchaser
6 or purchaser prospect:
7 (a) That the return represented as being available
8 under the viatical settlement purchase agreement is directly
9 tied to the projected life span of one or more insureds.
10 (b) If a return is represented, the disclosure shall
11 indicate the projected life span of the insured or insureds
12 whose life or lives are tied to the return.
13 (c) If required by the terms of the viatical
14 settlement purchase agreement, that the viatical settlement
15 purchaser shall be responsible for the payment of insurance
16 premiums on the life of the insured, late or surrender fees,
17 or other costs related to the life insurance policy on the
18 life of the insured or insureds which may reduce the return.
19 (d) The amount of any trust fees, commissions,
20 deductions, or other expenses, if any, to be charged to the
21 viatical settlement purchaser.
22 (e) The name and address of the person responsible for
23 tracking the insured.
24 (f) That group policies may contain limitations or
25 caps in the conversion rights, that additional premiums may
26 have to be paid if the policy is converted, and that the party
27 responsible for the payment of such additional premiums shall
28 be identified.
29 (g) That the life expectancy and rate of return are
30 only estimates and cannot be guaranteed.
31 (h) That the purchase of a viatical settlement
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1 contract should not be considered a liquid purchase, since it
2 is impossible to predict the exact timing of its maturity and
3 the funds may not be available until the death of the insured.
4 (i) The name and address of the person with the
5 responsibility for paying the premium until the death of the
6 insured.
7
8 The written disclosure required under this subsection shall be
9 conspicuously displayed in any viatical settlement purchase
10 agreement, and in any solicitation material furnished to the
11 viatical settlement purchaser by such viatical settlement
12 provider, related provider trust, or person, and shall be in
13 contrasting color and in not less than 10-point type or no
14 smaller than the largest type on the page if larger than
15 10-point type. The commission may adopt by rule the disclosure
16 form to be used. The disclosures need not be furnished in an
17 invitation to inquire, the objective of which is to create a
18 desire to inquire further about entering into a viatical
19 settlement purchase agreement. The invitation to inquire may
20 not quote rates of return, may not include material attendant
21 to the execution of any specific viatical settlement purchase
22 agreement, and may not relate to any specific viator.
23 Section 4. Subsection (1) of section 626.99236,
24 Florida Statutes, is amended to read:
25 626.99236 Further disclosures to viatical settlement
26 purchasers.--
27 (1) A viatical settlement provider or its viatical
28 settlement investment agent must provide the viatical
29 settlement purchaser with at least the following disclosures
30 no later than at the time of the assignment, transfer, or sale
31 of all or a portion of an insurance policy. The disclosures
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1 must be contained in a document signed by the viatical
2 settlement purchaser and viatical settlement provider or
3 viatical settlement investment agent, and the document must
4 make the following disclosures to the viatical settlement
5 purchaser:
6 (a) All the life expectancy certifications obtained by
7 the provider in the process of determining the price paid to
8 the viator.
9 (b) Whether premium payments or other costs related to
10 the policy have been escrowed and if escrowed, the date upon
11 which the escrowed funds will be depleted and whether the
12 purchaser will be responsible for payment of premiums
13 thereafter and, if so, the amount of the premiums.
14 (c) Whether premium payments or other costs related to
15 the policy have been waived and, if waived, whether the
16 investor will be responsible for payment of the premiums if
17 the insurer that wrote the policy terminates the waiver after
18 purchase and the amount of those premiums.
19 (d) The type of policy offered or sold, i.e. whole
20 life, term life, universal life, or a group policy
21 certificate; any additional benefits contained in the policy;
22 and the current status of the policy.
23 (e) If the policy is term insurance, the special risks
24 associated with term insurance, including, but not limited to,
25 the purchaser's responsibility for additional premiums if the
26 viator continues the term policy at the end of the current
27 term.
28 (f) Whether the policy is contestable.
29 (g) Whether the insurer that wrote the policy has any
30 additional rights that could negatively affect or extinguish
31 the purchaser's rights under the viatical settlement contract,
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1 what these rights are, and under what conditions these rights
2 are activated.
3 (h) The name and address of the person responsible for
4 monitoring the insured's condition and a description of how
5 often the monitoring of the insured's condition is done, how
6 the date of death is determined, and how and when this
7 information will be transmitted to the purchaser. No later
8 than 5 days prior to the assignment, transfer, sale, devise,
9 or bequest of the death benefit or ownership of all or a
10 portion of the insurance policy or certificate of insurance to
11 the purchaser, the viatical settlement provider and the
12 viatical settlement sales agent, themselves or through another
13 person, shall provide in writing the following disclosures to
14 any viatical settlement purchaser:
15 (a) All the life expectancy certifications obtained by
16 the provider.
17 (b) The name and address of the insurance company, the
18 policy number, and the date of original issue of the
19 viaticated policy.
20 (c) The experience and qualifications of the person
21 issuing the life expectancy certification, and that person's
22 relationship to the viatical settlement provider, the viatical
23 settlement broker, the viatical settlement sales agent, and
24 the viator.
25 (d) The name and address of any person providing
26 escrow services, and that person's relationship to the
27 viatical settlement provider, the viatical settlement broker,
28 the viatical settlement sales agent, and the viator.
29 (e) The type of life insurance policy offered or sold,
30 including a statement as to whether the policy is whole life,
31 term life, universal life, or a group policy certificate; a
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1 statement as to whether the policy is in lapse status or has
2 lapsed in the last 2 years; and a statement as to whether the
3 purchaser is entitled to benefits contained in the policy
4 other than the death benefit of the policy.
5 (f) The procedure to be used by the provider to
6 provide the status of the health condition of the insured to a
7 purchaser.
8 Section 5. This act shall take effect July 1, 2005.
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11 ================ T I T L E A M E N D M E N T ===============
12 And the title is amended as follows:
13 Delete everything before the enacting clause
14
15 and insert:
16 A bill to be entitled
17 An act relating to viatical settlements;
18 creating s. 626.99271, F.S.; requiring that a
19 fraud warning be included in viatical
20 settlement agreements; requiring certain
21 persons to report viatical fraud; providing for
22 immunity from civil liability for persons who
23 report viatical fraud; providing that the act
24 does not preempt limit enforcement by other
25 agencies; requiring viatical settlement
26 providers to initiate anti-fraud programs and
27 to submit an anti-fraud plan to the Financial
28 Services Commission; providing for the contents
29 of the anti-fraud plan; creating s. 626.99279,
30 F.S.; providing that advertisements of viatical
31 settlement agreements must be truthful;
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1 prohibiting certain specified statements that
2 are misleading; prohibiting advertising from
3 containing or excluding certain information;
4 amending s. 626.99235, F.S.; providing that
5 certain disclosures be made before the
6 agreement documents are signed; amending s.
7 626.99236, F.S.; requiring that the viatical
8 settlement documents contain certain
9 disclosures; providing an effective date.
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