2011 Kentucky Revised Statutes Subtitle 15. Life Insurance 304.15.716 Violation due to time of contract -- Conditions -- Procedure -- Satisfaction of requirements.
KY Rev Stat § 304.15.716 (1996 through Reg Sess) What's This?
304.15-716 Violation due to time of contract -- Conditions -- Procedure -Satisfaction of requirements.
(1)
(2)
(3)
It is a violation of this subtitle for a person to enter into a life settlement contract at
any time prior to, or at the time of application for, issuance of a policy, or within a
two (2) year period commencing with the date of issuance of the policy unless the
owner certifies to the life settlement provider that one (1) or more of the following
conditions has been met within the two (2) year period:
(a) The policy was issued upon the owner'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 prior policy is at least
twenty-four (24) months. The time covered under a group policy shall be
calculated without regard to a change in insurance carriers, if the coverage has
been continuous and under the same group sponsorship; or
(b) The owner submits independent evidence to the life settlement provider that
one (1) or more of the following conditions has been met within the two (2)
year period:
1.
The owner or insured is terminally or chronically ill;
2.
The owner or insured disposes of his ownership interests in a closely
held corporation, pursuant to the terms of a buyout or other similar
agreement in effect at the time the insurance policy was initially issued;
3.
The owner's spouse dies;
4.
The owner divorces his or her spouse;
5.
The owner retires from full-time employment;
6.
The owner becomes physically or mentally disabled and a physician
determines that the disability prevents the owner from maintaining fulltime employment; or
7.
A final order, judgment, or decree is entered by a court of competent
jurisdiction, on the application of the creditor of the owner, adjudicating
the owner bankrupt or insolvent, or approving a petition seeking
reorganization of the owner or appointing a receiver, trustee, or
liquidator to all or a substantial part of the owner's assets.
Copies of the independent evidence described in subsection (1) of this section and
the documents required by KRS 304.15-710 shall be submitted to the insurer when
the life settlement provider submits a request to the insurer for verification of
coverage. The copies shall be accompanied by a letter of attestation from the life
settlement provider that the copies are true and correct copies of the documents
received by the life settlement provider.
If the life settlement provider submits to the insurer a copy of independent evidence
provided for in subsection (2) of this section when the life settlement provider
submits a request to the insurer to effect the transfer of the policy to the life
settlement provider, the copy shall be deemed to conclusively establish that the life
settlement contract satisfies the requirements of this section and the insurer shall
respond timely to the request.
Effective: July 15, 2008
History: Amended 2008 Ky. Acts ch. 32, sec. 7, effective July 15, 2008. -- Amended
2005 Ky. Acts ch. 58, sec. 11, effective June 20, 2005. -- Created 2000 Ky. Acts
ch. 472, sec. 10, effective July 14, 2000.
Legislative Research Commission Note (7/15/2008). 2008 Ky. Acts ch. 32 intended to
change all existing references in the KRS from "viator" to "owner." One reference to
"viator's" in this section was overlooked during the bill drafting process. The Reviser
of Statutes has made this change upon the authority of KRS 7.136(1)(h).
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