2006 Georgia Code - 33-59-9

33-59-9. (a)(1) A life settlement provider entering into a life settlement contract first shall obtain: (A) If the seller is the insured, a written statement from a licensed attending physician that the seller is of sound mind and under no constraint or undue influence to enter into a life settlement contract; and (B) A document in which the insured consents to the release of his or her medical records to a life settlement provider or insurance producer and, if the policy was issued less than two years from the date of application for a life settlement contract, to the insurance company that issued the policy. (2) The insurer shall respond to a request for verification of coverage submitted by a life settlement provider or life insurance producer not later than 30 calendar days from the date the request is received. The request for verification of coverage shall be made on a form approved by the Commissioner. The insurer shall complete and issue the verification of coverage or indicate in which respects it is unable to respond. In its response, the insurer shall indicate whether, based on the medical evidence and documents provided, the insurer intends to pursue an investigation at this time regarding the validity of the insurance contract or possible fraud and shall provide sufficient detail of all reasons for the investigation to the life settlement provider or the life insurance producer. (3) Before or at the time of execution of the life settlement contract, the life settlement provider shall obtain a witnessed document in which the seller consents to the life settlement contract, represents that the seller has a full and complete understanding of the life settlement contract, represents that the seller has a full and complete understanding of the benefits of the policy, acknowledges that the seller is entering into the life settlement contract freely and voluntarily, and, for persons with a terminal or chronic illness or condition, acknowledges that the insured has a terminal or chronic illness and that the terminal or chronic illness or condition was diagnosed after the policy was issued. (4) If a life insurance producer performs any of these activities required of the life settlement provider, the life settlement provider is deemed to have fulfilled the requirements of this Code section. (b) Medical information solicited or obtained by a licensee is subject to the applicable provisions of state law relating to confidentiality of medical or protected health information. (c) A life settlement contract entered into in this state shall provide the seller with an unconditional right to rescind the contract before the earlier of 30 calendar days after the date upon which the life settlement contract is executed by all parties or 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 shall be deemed to have been rescinded, subject to repayment of all life settlement proceeds and any premiums, loans, and loan interest to the life settlement provider. (d) The life settlement provider shall instruct the seller to send the executed documents required to effect the change in ownership, assignment, or change in beneficiary directly to the independent escrow agent. Within three business days after the date the escrow agent receives the documents or from the date the life settlement provider receives the documents, if the seller erroneously provides the documents directly to the life settlement provider, the life settlement provider shall pay or transfer the proceeds of the life settlement contract into an escrow or trust account maintained in a state or federally chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation. Upon payment of the life settlement proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment, or change in beneficiary forms to the life settlement provider or related provider trust. Upon the escrow agent́s receipt of the acknowledgment of the properly completed transfer of ownership, assignment, or designation of beneficiary from the insurance company, the escrow agent shall pay the life settlement proceeds to the seller. (e) Failure to tender consideration to the seller for the life settlement contract within the time disclosed renders the life settlement contract voidable by the seller for lack of consideration until the time consideration is tendered to and accepted by the seller. (f) A contact with the insured, for the purpose of determining the health status of the insured by the life settlement provider after the life settlement contract has been executed, may only be made by the licensed life settlement provider or its authorized representatives and is limited to once every three months for insureds with a life expectancy of more than one year and not more than once each month for insureds with a life expectancy of one year or less. The life settlement provider shall explain the procedure for these contacts at the time the life settlement contract is entered into. The limitations provided for in this subsection do not apply to a contact with an insured for reasons other than determining the insured́s health status. A life settlement provider is responsible for the actions of his or her authorized representatives.

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