2005 Vermont Code - § 3832. — General rules

§ 3832. General rules

(a) A viatical settlement provider entering into a viatical settlement contract with any person with a catastrophic or life threatening illness or condition shall first obtain a statement signed in the presence of two witnesses in which the person acknowledges the catastrophic or life threatening illness or condition, represents that he or she has a full and complete understanding of the viatical settlement contract, that he or she understands the benefits of the life insurance policy that is to be sold or otherwise transferred, and acknowledges that he or she has entered into the viatical settlement contract freely and voluntarily.

(b) All medical information solicited or obtained by any licensee shall be confidential and the licensee shall not disclose any medical information acquired in the course of the negotiation of a viatical settlement contract except as otherwise ordered by the commissioner to assist in the investigation of a crime or violation of any provision of this title.

(c) All viatical settlement contracts entered into in this state shall contain and give notice of a seven-day unconditional right to cancel the contract. The seven-day cancellation period shall begin the day after the date of execution of the contract and shall end midnight seven days thereafter, or the next business day, if the seventh day falls on a weekend or is a state or federal holiday. The contract shall also provide a method for notice of cancellation. If notice of cancellation is given by mail, it shall be deemed given when deposited in the United States mail addressed and postage prepaid.

(d) After the expiration of the cancellation period described in subsection (c) of this section and upon receipt from the viator of documents to effect the transfer of the insurance policy, the viatical settlement provider shall pay the proceeds of the settlement to an escrow or trust account managed by a trustee or escrow agent in a bank approved by the commissioner, pending acknowledgment of the transfer by the issuer of the policy. The trustee or escrow agent shall be required to transfer the proceeds due to the viator immediately upon receipt of acknowledgment of the transfer from the insurer.

(e) Failure to tender the proceeds of the viatical settlement by the date disclosed to the viator renders the contract null and void.

(f) No viatical settlement broker may charge or receive a fee, commission or other valuable consideration in excess of two percent of the amount paid to the viator on a policy that is the subject of the viatical settlement broker's services, unless the commissioner approves another rate of compensation as reasonable and appropriate under the circumstances. (Added 1993, No. 235 (Adj. Sess.), § 4.)