Florida State Guidelines

Related Resource Links

CURRENT LEGISLATION

REGULATORY FORMS

Viatical Contract Checklist

Viatical Settlement Escrow Form Checklist

Viatical Settlement Purchase Agreement Checklist

Viatical Settlement Related Form Checklist

Relevant State Departments of Insurance Contact Info

Office of Insurance Regulation
The Larson Building
200 East Gaines Street, Rm 101A
Tallahassee, Florida 32399-030

Visit Website

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?: XXXVII FL ST Ch. 626.99287. Contestability of Viaticated Policies. (1) Except
as hereinafter provided, if a viatical settlement contract is entered into within the 2-year period commencing with the
date of issuance of the insurance policy or certificate to be acquired, the viatical settlement contract is void and
unenforceable by either party. (2) Except as hereinafter provided, if a viatical settlement policy is subject to a loan
secured directly or indirectly by an interest in the policy within a 5-year period commencing on the date of issuance of
the policy or certificate, the viatical settlement contract is void and unenforceable by either party.

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

IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: XXXVII FL ST Ch. 626.99181.

IS THERE A MINIMUM PAYMENT REQUIREMENT?: N/A

WHEN DOES THE MONEY NEED TO BE IN ESCROW?: XXXVII FL ST Ch. 626.9924. (3) A viatical settlement transaction
may be completed only through the use of an independent third-party trustee or escrow agent. Immediately upon
receipt by the independent third-party trustee or escrow agent of documents from the viator to effect the transfer of
the insurance policy, the viatical settlement provider must pay the proceeds of the settlement to an escrow or trust
account managed by the independent third-party trustee or escrow agent in a financial institution licensed under Florida
law or a federally chartered financial institution that is a member of the Federal Reserve System, pending
acknowledgment of the transfer by the issuer of the policy. An advance or partial payment of the proceeds due under a
viatical settlement contract may not be used to effect transfer of the subject policy; any such advance or partial
payment is made at the sole discretion and risk of the viatical settlement provider.
(4) Upon receipt of all viatical settlement contract proceeds, the independent third-party trustee or escrow agent must
release to the viatical settlement provider all documents necessary to complete the transfer of the insurance policy or
certificate of insurance so that the transfer, assignment, sale, bequest, or devise may be effected.
(5) The independent third-party trustee or escrow agent must transfer all proceeds of the viatical settlement contract
within 3 business days after receiving from the issuer of the subject policy acknowledgment of the transfer, assignment,
bequest, sale, or devise. Failure to transfer proceeds as required by this subsection renders the viatical settlement
contract and the transfer, assignment, bequest, sale, or devise voidable.

IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: YES. XXXVII FL ST Ch. 626.9924(9). If the
provider transfers ownership or changes the beneficiary of the insurance policy, the provider must communicate the
initial change in ownership or beneficiary to the insured within 20 days after the change.

IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: YES. XXXVII FL ST Ch. 626.9924(7). At
any time during the contestable period, within 20 days after a viator executes documents necessary to transfer rights
under an insurance policy or within 20 days of any agreement, option, promise, or any other form of understanding,
express or implied, to viaticate the policy, the provider must give notice to the insurer of the policy that the policy has or
will become a viaticated policy. The notice must be accompanied by the documents required by s. 626.99287.

WHAT IS THE RESCISSION PERIOD?: XXXVII FL ST Ch. 626.9923. The viatical settlement broker, or the viatical
settlement provider in transactions in which no broker is used, must inform the viator by the date of application for a
viatical settlement contract:
…
(5) That all viatical settlement contracts entered into in this state must contain an unconditional rescission provision
which allows the viator to rescind the contract within 15 days after the viator receives the viatical settlement proceeds,
conditioned on the return of such proceeds.

IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: N/A