TYPE OF LICENSE LIFE SETTLEMENT
WHAT DOES THE STATE DEFINE AS CONTESTABLE?: 2 YEARS
WHAT IS THE REQUIRED HOLDING PERIOD?: 2 YEARS. See: O.C.G.A. § 33-59-11(n).
WHEN DOES LICENSE NEED TO BE RENEWED?: O.C.G.A. § 33-59-3(g). Licenses may be renewed every year on May 1 upon payment of the periodic renewal fee.
IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: O.C.G.A. § 33-59-9(a)(8).
IS THERE A MINIMUM PAYMENT REQUIREMENT?: NO
WHEN DOES THE MONEY NEED TO BE IN ESCROW?: O.C.G.A. § 33-59-11(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 issuer of the policy. The trustee or escrow agent shall be required to transfer the proceeds due to the owner within three business days of 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?: YES – O.C.G.A. § 33-59-11(g). Within 20 days after an owner executes the life settlement contract, the provider shall give written notice to the insurer that issued that insurance policy that the policy has become subject to a life settlement contract. The notice shall be accompanied by the documents required by Code Section 33-59-10. (Also see: O.C.G.A. § 33-59-10)
WHAT IS THE RESCISSION PERIOD?: O.C.G.A. § 33-59-11(i). All life settlement contracts entered into in this state shall provide that the owner may rescind the contract on or before 15 days after the date it is executed by all parties thereto. Rescission, if exercised by the owner, is effective only if both notice of the 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 If the insured dies during the rescission period, the contract shall be deemed to have been rescinded subject to repayment by the owner or the owner’s estate of all proceeds and any premiums, loans, and loan interest to the provider.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 – Georgia has a state-developed VOC form OR The request for verification of coverage must be made on a form approved by the Commissioner. See: O.C.G.A. § 33-59-11(b).
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