2006 Nebraska Revised Statutes - § 44-1110 — Prohibited acts.

Section 44-1110
Prohibited acts.

It is a violation of the Viatical Settlements Act for any person to enter into a viatical settlement contract within a two-year period commencing on the date of issuance of the insurance policy or certificate unless the viator certifies to the viatical settlement provider that one or more of the following conditions have been met within the two-year period:

(1) The policy was issued upon the viator's exercise of conversion rights arising out of a group or individual policy if the total of the time covered under the conversion policy, plus the time covered under the group or individual policy, is at least twenty-four months. The time covered under the group policy shall be calculated without regard to any change in insurance carriers if the coverage has been continuous and under the same group sponsorship;

(2) The viator is a charitable organization exempt from taxation under 26 U.S.C. 501(c)(3), as such section existed on September 1, 2001;

(3) The viator is not a natural person, such as the owner is a corporation, limited liability company, or partnership; and

(4) The viator submits independent evidence to the viatical settlement provider that one or more of the following conditions have been met within the two-year period:

(a) The viator or insured is terminally or chronically ill;

(b) The viator's spouse died;

(c) The viator divorced his or her spouse;

(d) The viator retired from full-time employment;

(e) The viator became physically or mentally disabled and a physician determined that the disability prevented the viator from maintaining full-time employment;

(f) The viator was the insured's employer at the time the policy or certificate was issued and the employment relationship terminated;

(g) A final order, judgment, or decree was entered by a court of competent jurisdiction, on the application of a creditor of the viator, adjudicating the viator bankrupt or insolvent, or approving a petition seeking reorganization of the viator or appointing a receiver, trustee, or liquidator for all or a substantial part of the viator's assets;

(h) The viator experienced a significant decrease in income that was unexpected and that impaired the viator's reasonable ability to pay the policy premium; or

(i) The viator or insured disposed of his or her ownership interests in a closely held corporation.

Copies of the independent evidence described in subdivision (4) of this section and documents required by subsection (1) of section 44-1109 shall be submitted to the insurer when the viatical settlement provider submits a request to the insurer for verification of coverage. The copies shall be accompanied by a letter of attestation from the viatical settlement provider that the copies are true and correct copies of the documents received by the viatical settlement provider.

If the viatical settlement provider submits to the insurer a copy of the owner's or insured's certification described in subdivision (4) of this section when the provider submits a request to the insurer to effect the transfer of the policy or certificate to the viatical settlement provider, the copy shall be deemed to conclusively establish that the viatical settlement contract satisfies the requirements of this section and the insurer shall timely respond to the request.

Source:

Laws 2001, LB 52, § 36

~Reissue Revised Statutes of Nebraska