2005 Vermont Code - § 3826. — Definitions

§ 3826. Definitions

As used in this subchapter:

(1) "Viatical settlement broker" means any person or his or her agent who for a fee, commission or other valuable consideration, offers or advertises the availability of viatical settlements, introduces viators to viatical settlement providers, or offers or attempts to negotiate viatical settlements between a viator and one or more viatical settlement providers. "Viatical settlement broker" does not include an attorney, accountant or financial planner retained to represent the viator whose compensation is not paid by the viatical settlement provider.

(2) "Viatical settlement contract" means an agreement between a viatical settlement provider and a person who owns a life insurance policy or who owns or is covered under a group policy either of which insures the life of a person who has a catastrophic or life threatening illness or condition and under which the viatical settlement provider will pay compensation or anything of value, which compensation or value is less than the expected death benefit of the insurance policy or certificate, in return for the viator's assignment, transfer, sale, devise or bequest of the death benefit or ownership of the insurance policy or certificate to the viatical settlement provider.

(3) "Viatical settlement provider" means any person who enters into an agreement with a person who owns a life insurance policy or who owns or is covered under a group policy either of which insures the life of a person who has a catastrophic or life threatening illness or condition, under the terms of which the viatical settlement provider pays compensation or anything of value, which compensation or value is less than the expected death benefit of the insurance policy or certificate, in return for the assignment, transfer, sale, devise or bequest of the death benefit or ownership of the insurance policy or certificate to the viatical settlement provider. Viatical settlement provider does not include:

(A) Any bank, savings bank, savings and loan association, credit union or other licensed lending institution which takes an assignment of a life insurance policy as collateral for a loan;

(B) The issuer of a life insurance policy providing accelerated benefits; or

(C) Any natural person who enters into no more than one agreement in a calendar year for the transfer of a life insurance policy for any value less than the expected death benefit.

(D) Any corporation, partnership or partner that purchases a life insurance contract of an employee or retiree of the corporation or of a partner. The settlement made on any contract exempt under this subdivision (D) shall be reasonable and subject to the standards imposed on licensees under sections 3831, 3832 and 3833 of this title.

(4) "Viator" means the owner of a life insurance policy or the certificate holder of a group policy either of which insures the life of a person with a catastrophic or life threatening illness or condition who enters into an agreement under which the viatical settlement provider will pay compensation or anything of value, which compensation or value is less than the expected death benefit of the insurance policy or certificate, in return for the assignment, transfer, sale, devise or bequest of the death benefit or ownership of the insurance policy or certificate to the viatical settlement provider. (Added 1993, No. 235 (Adj. Sess.), § 4.)