2005 Vermont Code - § 3829. — Approval of viatical settlement contracts

§ 3829. Approval of viatical settlement contracts

(a) Viatical settlement contracts shall be in writing. The contract shall establish the terms under which the viatical settlement provider will pay compensation to the viator and the assignment, transfer, sale, devise or bequest of the death benefit or ownership of the insurance policy or certificate to the viatical settlement provider.

(b) No viatical settlement provider may use any viatical settlement contract in this state unless the form of the contract has been filed with and approved by the commissioner. Any viatical settlement contract form filed with the commissioner shall be deemed approved if it has not been disapproved within 60 days of the filing. The commissioner may extend by not more than 30 additional days the period within which affirmative approval or disapproval of any such form may be given, by notifying the viatical settlement provider of such extension before expiration of the initial 60-day period.

(c) The commissioner may withdraw approval of a previously approved contract form. Any order of the commissioner disapproving any such form or withdrawing a previous approval shall state the grounds therefor and the particulars thereof in such detail as reasonable to inform the viatical settlement provider thereof. Any such withdrawal of a previously approved form shall be effective at expiration of such period as the commissioner shall in the notice prescribe. Any request for a hearing relative to the commissioner's withdrawal of approval of a form which has been received by the commissioner prior to the effective date of such withdrawal shall stay such action pending the hearing thereon.

(d) The commissioner shall disapprove a viatical settlement contract form if the contract or any provision contained therein is unreasonable, contrary to the interests of the public, or otherwise misleading or unfair to the policyholder.

(e) Any viatical settlement provider aggrieved by the disapproval or withdrawal of approval of any form required to be filed under this section may file a written request for a hearing within 30 days of the date of the notice of the disapproval or withdrawal. Any hearing requested under this section shall be conducted pursuant to chapter 25 of Title 3. (Added 1993, No. 235 (Adj. Sess.), § 4.)