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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. Md. Ins. Code Ann. § 8-610(b).
WHEN DOES LICENSE NEED TO BE RENEWED?: N/A
IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: Md. Ins. Code Ann. § 8-605.1(d)).
IS THERE A MINIMUM PAYMENT REQUIREMENT?: NO
WHEN DOES THE MONEY NEED TO BE IN ESCROW?: Md. Ins. Code Ann. § 8-606(b)(6). Funds will be sent to the viator within 3 business days after the provider has received the insurer’s or group administrator’s acknowledgment that ownership of or interest in the policy has been transferred and the beneficiary has been designated.
IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: YES. Md. Ins. Code Ann. § 8-606(g)). If the provider transfers ownership or changes the beneficiary of the policy, the provider shall communicate the 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?: NO.
WHAT IS THE RESCISSION PERIOD?: Md. Ins. Code Ann. § 8-606(b)(5). The viator has the right to rescind a viatical settlement contract for 15 calendar days after receipt of the viatical settlement proceeds by the viator, subject to repayment of all viatical settlement proceeds and any premiums and loan interest paid by the viatical settlement provider; and
If the insured dies during the rescission period, the viatical settlement contract shall be deemed to have been rescinded, subject to repayment of all viatical settlement proceeds and any premiums, loans, and loan interest to the viatical settlement provider.
IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – STATE. See: Md. Ins. Code Ann. § 8-610.1(a).
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