2006 Utah Code - 31A-36-111 — Prohibited acts.

     31A-36-111.   Prohibited acts.
     (1) A viator may not enter into a viatical settlement within two years after the date of issuance of the policy to which the settlement relates unless the viator certifies to the provider of viatical settlements that one of the following is satisfied:
     (a) the policy was issued upon the viator's exercise of conversion rights arising out of a group or individual policy, provided:
     (i) the total time covered under the conversion policy plus the time covered under the prior policy is at least 24 months; and
     (ii) the time covered under a group policy, calculated without regard to any change in insurance carriers, has been continuous and under the same group sponsorship;
     (b) the viator is a charitable organization exempt from taxation under 26 U.S.C. Sec. 501(c)(3);
     (c) the viator is not a natural person; or
     (d) the viator submits to the provider of viatical settlements independent evidence that within the two-year period:
     (i) the viator or insured is terminally ill;
     (ii) the viator or insured is chronically ill;
     (iii) the spouse of the viator has died;
     (iv) the viator has divorced the viator's spouse;
     (v) the viator has retired from full-time employment;
     (vi) the viator has become physically or mentally disabled and a physician determines that the disability precludes the viator from maintaining full-time employment;
     (vii) (A) the viator was the employer of the insured when the policy or certificate was issued; and
     (B) the employment relationship has terminated;
     (viii) a final judgment or order has been entered or issued by a court of competent jurisdiction, on the application of a creditor of the viator:
     (A) adjudging the viator bankrupt or insolvent;
     (B) approving a petition for reorganization of the viator; or
     (C) appointing a receiver, trustee, or liquidator for all or a substantial part of the viator's assets;
     (ix) the viator experiences a significant decrease in income that is unexpected and impairs the viator's reasonable ability to pay the policy premium;
     (x) the viator disposes of the viator's ownership in a closely held corporation; or
     (xi) the insured disposes of the insured's ownership in a closely held corporation.
     (2) When the provider of viatical settlements submits a request to the insurer to verify coverage, the provider of viatical settlements shall submit to the insurer the following:
     (a) copies of the independent evidence required under Subsection (1)(d); and
     (b) documents required under Subsection 31A-36-109(2).
     (3) If a provider of viatical settlements submits to an insurer a copy of the owner's or insured's certification that one of the events described in Subsection (1)(d) has occurred, the certification conclusively establishes that the viatical settlement satisfies the requirements of this section, and the insurer shall timely respond to the provider's request to effect a transfer of the policy.

Enacted by Chapter 81, 2003 General Session

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