2006 Utah Code - 31A-36-109 — General requirements.

     31A-36-109.   General requirements.
     (1) If a provider of viatical settlements transfers ownership or changes the beneficiary of a viaticated policy, the provider shall inform the insured of the transfer or change within 20 calendar days.
     (2) A provider of viatical settlements that enters a viatical settlement shall first obtain:
     (a) if the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constraint or undue influence to enter a viatical settlement;
     (b) a witnessed document in which the viator represents that:
     (i) the viator has a full and complete understanding of the viatical settlement and the benefits of the policy;
     (ii) the viator has entered the viatical settlement freely and voluntarily; and
     (iii) if applicable, the insured is terminally ill or chronically ill and that the illness was diagnosed after the policy was issued; and
     (c) a document in which the insured consents to the release of the insured's medical records to:
     (i) a provider of viatical settlements;
     (ii) a producer of viatical settlements; and
     (iii) the insurer that issued the policy covering the insured.
     (3) Within 20 calendar days after a viator executes documents necessary to transfer rights under a policy, or enters into an agreement in any form, express or implied, to viaticate the policy, the provider of viatical settlements shall give written notice to the issuer of the policy that the policy has or will become viaticated. The notice must be accompanied by a copy of the documents required by Subsection (4).
     (4) The provider of viatical settlements shall deliver a copy of the following to the insurer that issued the policy that is the subject of the viatical settlement:
     (a) the medical release required under Subsection (2)(c);
     (b) a copy of the viator's application for the viatical settlement; and
     (c) the notice required under Subsection (3).
     (5) The insurer shall complete and return a request for verification of coverage not later than 30 calendar days after the date the request is received. In its response the insurer shall indicate whether the insurer intends to pursue an investigation regarding the validity of the insurance contract.
     (6) All medical information solicited or obtained by a licensee under this chapter is subject to:
     (a) other laws of this state relating to the confidentiality of the information; and
     (b) a rule relating to privacy of medical or personal information promulgated by the commissioner under Title V, Section 505 of the Gramm-Leach-Bliley Act of 1999, 15 U.S.C. Sec. 6805.
     (7) A viatical settlement entered into in this state must reserve to the viator an unconditional right to terminate the viatical settlement within 15 calendar days after the viator receives the proceeds of the settlement. If the insured dies during that period, the settlement is terminated and all proceeds, premiums, loans, and loan interest that have been paid by the provider or purchaser of the viatical settlement must be repaid to the provider or purchaser of the viatical settlement.

---

     (8) (a) Contact with an insured to determine the health status of the insured after a viatical settlement may be made only by a provider or producer of viatical settlements that is licensed in this state, or its authorized representative, and no more than:
     (i) once every three months if the insured has a life expectancy of one year or more; or
     (ii) once every month if the insured has a life expectancy of less than one year.
     (b) The provider or producer of viatical settlements shall explain the procedure for the contacts allowed under this Subsection (8) to the viator when the application for the viatical settlement is signed by all parties.
     (c) The limitations of this Subsection (8) do not apply to contacts for purposes other than determining health status.
     (d) A provider or producer of viatical settlements is responsible for the acts of its authorized representative in violation of this Subsection (8).
     (9) The trustee of a related provider trust must agree in writing with the provider of viatical settlements that:
     (a) the provider is responsible for ensuring compliance with all statutory and regulatory requirements; and
     (b) the trustee will make all records and files related to viatical settlements available to the commissioner as if those records and files were maintained directly by the provider.
     (10) Regardless of the method of compensation, a producer of viatical settlements:
     (a) represents only the viator; and
     (b) owes a fiduciary duty to the viator to act according to the viator's instructions and in the best interest of the viator.

Enacted by Chapter 81, 2003 General Session