2006 Utah Code - 31A-36-110 — Payment and document requirements.

     31A-36-110.   Payment and document requirements.
     (1) A provider of viatical settlements shall instruct the viator to send the executed documents required to effect the change in ownership or assignment or change of beneficiary of the affected policy to a designated independent escrow agent. Within three business days after the date the escrow agent receives the documents, or within three business days after the provider of viatical settlements receives the documents if by mistake they are sent directly to the provider of viatical settlements, the escrow agent shall deposit the proceeds of the settlement into an escrow or trust account maintained in a regulated financial institution whose deposits are insured by a federal deposit insurer.
     (2) Upon completion of the requirements of Subsection (1), the escrow agent shall deliver to the provider of viatical settlements the original documents executed by the viator. Upon the provider's receipt from the insurer of an acknowledgment of the change in ownership or assignment or change of beneficiary of the affected policy, the provider of viatical settlements shall instruct the escrow agent to pay the proceeds of the settlement to the viator.
     (3) Payment to the viator must be made within three business days after the date the provider of viatical settlements received the acknowledgment from the insurer. Failure to make the payment within that time makes the viatical settlement voidable by the viator for lack of consideration until payment is tendered to and accepted by the viator.

Enacted by Chapter 81, 2003 General Session