2006 Georgia Code - 33-59-8

33-59-8. (a) With each application for a life settlement contract, a life settlement provider or life insurance producer shall provide the seller with at least the following disclosures no later than the time the application for the life settlement contract is signed by all parties. The disclosures shall be provided in a separate document that is signed by the seller and the life settlement provider or life insurance producer and shall provide the following information: (1) That there exist possible alternatives to a life settlement contract including any accelerated death benefits or policy loans offered under the selleŕs life insurance policy; (2) That some or all of the proceeds of the life settlement contract may be taxable under federal income tax and state franchise and income taxes and assistance may be sought from a professional tax adviser; (3) That proceeds of the life settlement contract may be subject to the claims of creditors; (4) That receipt of the proceeds of a life settlement contract may adversely affect the selleŕs eligibility for Medicaid or other government benefits or entitlements and advice may be obtained from the appropriate government agencies; (5) That the seller has the right to rescind a life settlement contract before the earlier of 30 calendar days after the date upon which the life settlement contract is executed by all parties or for 15 calendar days after the receipt of the life settlement proceeds by the seller. Rescission, if exercised by the seller, is effective only if both notice of the rescission is given and repayment of all proceeds and any premiums, loans, and loan interest to the life settlement provider is made within the rescission period. If the insured dies during the rescission period, the life settlement contract is deemed to have been rescinded, subject to repayment being made to the life settlement provider within the rescission period of all life settlement proceeds and any premiums, loans, and loan interest; (6) That funds shall be sent to the seller within three business days after the life settlement provider has received the insurer or group administratoŕs acknowledgment that ownership of the purchased policy has been transferred and the beneficiary has been designated; (7) That entering into a life settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy, to be forfeited by the seller and assistance may be sought from a financial adviser; (8) That the disclosure to a seller shall include distribution of a brochure, approved by the Commissioner, describing the process of life settlements; (9) That the disclosure document shall contain the following language: 'All medical, financial, or personal information solicited or obtained by a life settlement provider or a life insurance producer about an insured, including the insured́s identity or the identity of family members, a spouse, or a significant other, may be disclosed as necessary to effect the life settlement contract between the seller and the life settlement provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share information every two years.'; and (10) That the insured may be contacted by either the life settlement provider or its authorized representative for the purpose of determining the insured́s health status. This contact is limited to once every three months if the insured has a life expectancy of more than one year and no more than once each month if the insured has a life expectancy of one year or less. (b) A life settlement provider shall provide the seller with at least the following disclosures no later than the date the life settlement contract is signed by all parties. The disclosures shall be displayed conspicuously in the life settlement contract or in a separate document signed by the seller and the life settlement provider and provide the following information: (1) The affiliation, if any, between the life settlement provider and the issuer of the insurance policy to be acquired pursuant to a life settlement contract; (2) The name, address, and telephone number of the life settlement provider; (3) If a policy to be acquired pursuant to a life settlement contract has been issued as a joint policy or involves family riders or any coverage of a life other than the insured under the policy to be acquired pursuant to a life settlement contract, the seller shall be informed of the possible loss of coverage on the other lives under the policy and shall be advised to consult with his or her insurance producer or the insurer issuing the policy for advice on the proposed life settlement contract; (4) The dollar amount of the current death benefit payable to the life settlement provider under the policy. If known, the life settlement provider also shall disclose the availability of additional guaranteed insurance benefits, the dollar amount of accidental death and dismemberment benefits under the policy or certificate, and the life settlement provideŕs interest in those benefits; and (5) The name, business address, and telephone number of the independent third-party escrow agent and the fact that the seller may inspect or receive copies of the relevant escrow or trust agreements or documents. (c) If the life settlement provider transfers ownership or changes the beneficiary of the policy, the life settlement provider shall communicate the change in ownership or beneficiary to the insured within 20 days after the change.

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