Relevant State Departments of Insurance Contact Info

Department of Regulatory Agencies
Division of Insurance
1560 Broadway, Suite 850
Denver, Colorado 80202

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Summary of the State:

    • Support
    • Oppose
    • Neutral
    • TBA
    • Summary Verbiage

TYPE OF LICENSE (LIFE SETTLEMENT/VIATICAL SETTLEMENT): LIFE SETTLEMENT (USES VIATICAL TERMINOLOGY)

WHAT DOES THE STATE DEFINE AS CONTESTABLE?: 2 YEARS

WHAT IS THE REQUIRED HOLDING PERIOD?: 2 YEARS. See: C.R.S. 10-7-610(1).

WHEN DOES LICENSE NEED TO BE RENEWED?: C.R.S. 10-7-603(2)(c). A license may be renewed from year to year, on
the anniversary date of initial issuance, upon payment of an annual renewal fee as determined by the commissioner by
rule.

IS BROKER COMPENSATION DISCLOSURE REQUIRED?: NO

IS THERE A MINIMUM PAYMENT REQUIREMENT?: YES. See: 3 CCR 702-2-1-11. Section 7. General Rules.
(I) If an insured is terminally or chronically ill, a viatical settlement provider shall pay an amount greater than the cash
surrender value or accelerated death benefit then available.

WHEN DOES THE MONEY NEED TO BE IN ESCROW?: C.R.S. 10-7-609(4). The viatical settlement provider shall instruct
the viator to send the executed documents required to effect the change in ownership, assignment, or beneficiary
directly to an independent escrow agent. If the viator erroneously provides the documents directly to the viatical
settlement provider, the viatical settlement provider shall immediately notify the escrow agent and shall pay or transfer
the proceeds of the viatical settlement contract into an escrow or trust account maintained in a state or federally
chartered financial institution whose deposits are insured by the federal deposit insurance corporation within three
business days after the date the escrow agent receives the documents, or after the date the viatical settlement provider
receives the documents. Upon payment of the viatical settlement proceeds into the escrow account, the escrow agent
shall deliver the original change in ownership, assignment, or beneficiary forms to the viatical settlement provider or
related provider trust. Upon the escrow agent’s receipt of the acknowledgment of the properly completed transfer of
ownership, assignment, or designation of beneficiary from the insurance company, the escrow agent shall pay the
viatical settlement proceeds to the viator.

IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: YES – C.R.S. 10-7-608(4). If the viatical
settlement provider transfers ownership or changes the beneficiary of the policy, the viatical settlement provider shall
communicate the change in ownership or beneficiary to the insured within twenty days after the change.

IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: See: 3 CCR 702-2-1-11. Section 9.
Insurance Company Practices.
E. A life insurance company shall not require the viator or insured to sign any request for change in a policy or a group
certificate from a viatical settlement provider that is the owner or assignee of the insured’s insurance coverage, unless
the viator or insured has ownership, assignment or irrevocable beneficiary rights under the policy. In such a situation,
the viatical settlement provider shall provide timely notice to the insured that a settlement transaction on the policy has
occurred. Timely notice shall be provided within fifteen (15) calendar days of the change in a policy or group certificate.

WHAT IS THE RESCISSION PERIOD?: C.R.S. 10-7-609(3). A viatical settlement contract entered into in this state shall
provide the viator with an unconditional right to rescind the contract before the earlier of thirty calendar days after the
date when the viatical settlement contract is executed by all parties or fifteen calendar days after the receipt of the
viatical settlement proceeds by the viator. Rescission, if exercised by the viator, is effective only if both notice of the
rescission is given and repayment of all proceeds and any premiums, loans, and loan interest to the viatical settlement
provider is made within the rescission period. If the insured dies during the rescission period, the viatical settlement
contract shall be deemed to have been rescinded if repayment of all viatical settlement proceeds and any premiums,
loans, and loan interest to the viatical settlement provider is made within forty-five days after the end of the rescission
period.

IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – OWN – C.R.S. 10-7-609(1)(b). The insurer shall
respond to a request for verification of coverage submitted by a viatical settlement provider or life insurance producer
not later than thirty calendar days after the date the request is postmarked. The request for verification of coverage
shall be made on a form approved by the commissioner. The insurer shall complete and issue the verification of
coverage or indicate in which respects it is unable to respond.

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