2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 15 - Life Insurance and Annuity Contracts 15.15-716 Violation due to time of contract -- Conditions -- Procedure -- Satisfaction of requirements.
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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
full-time 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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