2005 Vermont Code - § 3831. — Disclosure

§ 3831. Disclosure

A viatical settlement provider shall disclose the following information to the viator prior to the execution of the viatical settlement contract by the viator:

(1) Alternatives to viatical settlement contracts for persons with catastrophic or life threatening illnesses or conditions, including, but not limited to, accelerated benefits offered by the issuer of the life insurance policy;

(2) The fact that some or all of the proceeds of the viatical settlement may be taxable, and that a personal tax advisor should be consulted;

(3) The fact that the viatical settlement could be subject to the claims of creditors;

(4) The fact that receipt of proceeds from a viatical settlement may adversely affect the recipient's eligibility for Medicaid or other government benefits or entitlements, and that advice should be obtained from the appropriate agencies;

(5) The policyholder's right to cancel a viatical settlement contract within seven days of the date it is executed as provided in subsection 3832(c) of this title;

(6) The date by which the proceeds will be available to the viator and the source of the proceeds; and

(7) The fact that the viatical settlement contract is null and void if the viatical settlement provider fails to tender payment of the proceeds as provided in the viatical settlement contract. (Added 1993, No. 235 (Adj. Sess.), § 4.)