Relevant State Departments of Insurance Contact Info

State of Alaska
Department of Commerce, Community and Economic Development
Division of Insurance
550 West 7th Avenue, Suite 1560
Anchorage, Alaska 99501-3567

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Summary of the State:

    • Support
    • Oppose
    • Neutral
    • TBA
    • Summary Verbiage

TYPE OF LICENSE LIFE SETTLEMENT (USES VIATICAL TERMINOLOGY)

WHAT DOES THE STATE DEFINE AS CONTESTABLE?: 2 YEARS

WHAT IS THE REQUIRED HOLDING PERIOD?: 2 YEARS. See: 3 AAC 31.395(g).

WHEN DOES LICENSE NEED TO BE RENEWED?: 3 AAC 31.340. License renewal
(a) Except as provided in 3 AAC 31.300 — 3 AAC 31.449, the director will renew a viatical settlement provider, viatical
settlement broker, or viatical settlement representative license biennially on a date consistent with 3 AAC 23.860, if the
licensee continues to be qualified under 3 AAC 31.300 — 3 AAC 31.449 and on or before the close of business on the
renewal date, meets all renewal requirements under 3 AAC 23.860. A licensee is responsible for knowing the date that a
license lapses and for renewing a license before the expiration date of the license.
3 AAC 23.860. Biennial license renewal
(a) The biennial renewal date for an individual licensee is based upon the individual’s birthday, as follows:
(1) if the individual licensee’s birth year is an odd number, the renewal date is the individual’s birthday every oddnumbered
year;
(2) if the individual licensee’s birth year is an even number, the renewal date is individual’s birthday every evennumbered
year;
(b) The biennial renewal date for a firm licensee is based upon the firm’s initial license date, as follows:
(1) if the firm’s initial license was issued in an odd-numbered year, the renewal date is the initial license date every oddnumbered
year;
(2) if the firm’s initial license was issued in an even-numbered year, the renewal date is the initial license date every
even-numbered year.

IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: 3 AAC 31.380(b)(3).

IS THERE A MINIMUM PAYMENT REQUIREMENT?: YES. See: 3 AAC 31.365. Payments.
(a) A viatical settlement provider may not enter into or effectuate a viatical settlement contract that provides payment
to the viator that is unreasonable or unjust. For life expectancies up to 24 months, the following discount rates as
applied to the face value of a life insurance policy, less outstanding loans on the policy, will be presumed to be
reasonable and just payment to a viator:
(1) if the life expectancy of the insured is less than six months, at least 80 percent;
(2) if the life expectancy of the insured is at least six months but less than 12 months, at least 70 percent;
(3) if the life expectancy of the insured is at least 12 months but less than 18 months, at least 65 percent;
(4) if the life expectancy of the insured is at least 18 months but less than 24 months, at least 60 percent.
(b) A viatical settlement provider may enter into or effectuate a viatical settlement contract that provides payment to a
viator less than the amounts specified in (a) of this section, if the director determines the payment not to be
unreasonable or unjust. In determining whether a payment is unreasonable or unjust, the director will consider
(1) the life expectancy of the viator;
(2) the applicable rating of the insurance company that issued the life insurance policy by a rating service generally
recognized by the insurance industry, regulators, and consumer groups;
(3) the prevailing discount rates in the viatical settlement market in this state, or if insufficient data is available for this
state, the prevailing discount rates nationally or in other states that maintain this data, if the data is credible; if the
director determines that credible prevailing discount rate data is not available, the director may require that payment to
a viator under a viatical settlement contract must be consistent with the payments specified in (a) of this section; and
(4) other factors relevant to whether the payment is unreasonable or unjust.

WHEN DOES THE MONEY NEED TO BE IN ESCROW?: AAC 31.65(e). Within three working days after the viatical
settlement provider’s receipt of documents to effectuate the transfer of the insurance policy under a viatical settlement
contract, the viatical settlement provider shall pay proceeds of the viatical settlement contract to an escrow or trust
account in a state or federally chartered financial institution whose deposits are insured by the Federal Deposit
Insurance Corporation…

IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: YES. 3 AAC 31.380(c). If the viatical settlement
provider transfers ownership or changes the beneficiary of the life insurance policy, the viatical settlement provider shall
provide the viator and insured the name, business address, and phone number of the new beneficiary or owner within
20 days after the transfer of ownership or change in beneficiary.

IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: YES. 3 AAC 31.390(d). Within 20 days
after a viator executes documents necessary to transfer rights under a life insurance policy, or within 20 days after
entering an agreement, option, promise, or other form of understanding to viaticate a life insurance policy, whichever is
earlier, a viatical settlement provider shall:
(1) give written notice to the insurance company that issued the life insurance policy subject to the viatical settlement
contract that the life insurance policy is or will be viaticated; and
(2) deliver a copy of the medical release required in (c)(3) of this section, a copy of the viator’s application for the viatical
settlement contract, and the notice required in (1) of this subsection to the insurance company that issued the life
insurance policy to be viaticated.

WHAT IS THE RESCISSION PERIOD?: 3 AAC 31.370(f). A viatical settlement contract must provide the viator with an
unconditional right to rescind the contract within 15 days after the date the viator received the viatical settlement
contract proceeds. If the insured dies during the 15-day period, the viatical settlement contract must be rescinded as of
the date of death, and the viator shall refund the viatical settlement contract proceeds to the viatical settlement
provider within 10 working days after the date the viatical settlement contract was rescinded.

IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES. Alsaka has a state-developed VOC Form (3 AAC
31.400. Appendix A) OR 3 AAC 31.400(b) Nothing in this section prohibits a life insurance company and either a viatical
settlement provider or a viatical settlement broker from using another verification of coverage form that has been
mutually agreed upon in writing in advance of the submission of the request.

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