Relevant State Departments of Insurance Contact Info

Arizona Department of Insurance and Financial Institutions
100 North 15th Avenue, Suite 261
Phoenix, AZ 85007-2630

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Summary of the State:

    • Support
    • Oppose
    • Neutral
    • TBA
    • Summary Verbiage

TYPE OF LICENSE LIFE SETTLEMENT

WHAT DOES THE STATE DEFINE AS CONTESTABLE?: 2 YEARS

WHAT IS THE REQUIRED HOLDING PERIOD?: 2 YEARS. See: A.R.S. § 20-3211(N).

WHEN DOES LICENSE NEED TO BE RENEWED?: N/A

IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: A.R.S. § 20-3204(C)(4).

IS THERE A MINIMUM PAYMENT REQUIREMENT?: NO

WHEN DOES THE MONEY NEED TO BE IN ESCROW?: A.R.S. § 20-3211(J). Within three business days after receipt from
the owner of documents to effect the transfer of the insurance policy, the provider shall pay the proceeds of the
settlement to an escrow or trust account managed by a trustee or escrow agent in a state or federally chartered
financial institution pending acknowledgment of the transfer by the issuer of the policy. The trustee or escrow agent
shall transfer the proceeds due to the owner within three business days after acknowledgment of the transfer from the
insurer.

IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: NO

IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: A.R.S. § 20-3211(G)). Within twenty
days after an owner executes the life settlement contract, the provider shall give written notice to the insurer that
issued the insurance policy that the policy is subject to a life settlement contract. The notice shall be accompanied by
the documents required by section 20-3204, subsection C.

WHAT IS THE RESCISSION PERIOD?: A.R.S. § 20-3204(A)(6). That the owner has a right to rescind a life settlement
contract within fifteen days after the date it is executed by all parties and the owner has received all required
disclosures. Rescission, if exercised by the owner, is effective only if both notice of rescission is given and the owner
repays all proceeds and any premiums, loans and loan interest paid on account of the provider within the rescission
period. If the insured dies during the rescission period, the contract is deemed to have been rescinded subject to
repayment by the owner or the owner’s estate of all proceeds and any premiums, loans and loan interest to the
provider.

IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – OWN – A.R.S. § 20-3211(B)). The insurer shall
respond to a request for verification of coverage submitted by a provider, settlement broker or life insurance producer
not later than thirty calendar days from the date the request is received. The request for verification of coverage must
be made on a form approved by the director. The insurer shall complete and issue the verification of coverage or
indicate in which respects it is unable to respond. In the insurer’s response, the insurer shall indicate whether, based on
the medical evidence and documents provided, the insurer intends to pursue an investigation at this time regarding the
validity of the insurance contract.

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