NRS 688C.262 Disclosures required to be provided by provider of viatical settlements or viatical settlement investment agent to purchaser of viatical settlement before execution of settlement; provision of certain brochure.

632 words·~3 min read·/nv/chapter-688c-viatical-settlements/688c-262

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. Before the date on which an agreement to purchase a viatical settlement is signed by all parties thereto, the provider of viatical settlements or a viatical settlement investment agent who contracted with or was appointed by the provider of viatical settlements shall provide the purchaser of viatical settlements with the following disclosures:

(a)A statement that the purchaser will receive no return on the viatical settlement investment, including dividends and interest, until the insured has died and a claim for a death benefit is made pursuant to the viaticated policy.

(b)A statement that the actual annual rate of return on a viatical settlement is dependent upon an accurate projection of the life expectancy of the insured and that a guaranteed annual rate of return is not determinable.

(c)A statement that a viaticated policy is not a liquid asset.

(d)A statement that the purchaser may lose all, or a substantial portion, of the benefits of the viaticated policy if the insurer who issued the policy goes out of business during the term of the viatical settlement investment.

(e)A statement that the purchaser is responsible for the payment of premiums and other costs related to the viaticated policy, including, without limitation, premiums and costs if the insured returns to health, and that those payments may reduce the purchaser’s return on the viatical settlement investment.

(f)A statement as to whether the purchaser is entitled to a refund of all or a part of the payment of the purchaser pursuant to the viatical settlement investment if the viaticated policy is later determined to be void.

(g)A statement that a group insurance policy may contain provisions:

(1)Limiting or negating rights of conversion if the policy is terminated and replaced by another policy; and

(2)Requiring the payment of additional premiums if the policy is converted. If the group insurance policy requires a payment of additional premiums if the policy is converted, a disclosure statement pursuant to this subparagraph must also identify the name of the party responsible for the payment of the additional premiums.

(h)The cost of the premium to be paid by the purchaser.

(i)The costs of any fees or other expenses to be paid by the purchaser.

(j)The name, business address and telephone number of the designated independent escrow agent.

(k)The relationship between the designated independent escrow agent and the broker of viatical settlements.

(l)The risks associated with contestability of the policy, including, without limitation, the risk that the purchaser will have no claim or a limited claim to death benefits if the insurer rescinds the policy during the period of contestability.

(m)A statement as to whether the purchaser will be the owner of the policy in addition to being the beneficiary and, if the purchaser is the beneficiary only and not also the owner, the additional risks associated with that status, including, without limitation, the risk that the beneficiary may be changed or the premium may not be paid.

(n)A description of the experience and qualifications of the person who projects the life expectancy of the insured, the information on which the projection is based and the relationship, if any, between the person who makes the projection and the provider of viatical settlements.

2. The provider of viatical settlements or the viatical settlement investment agent shall also provide to the purchaser of viatical settlements a brochure that describes the process of investment in viatical settlements. The form of the brochure created by the National Association of Insurance Commissioners must be used unless an alternate is developed by the Commissioner.