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Relevant State Departments of Insurance Contact Info
Oklahoma Department of Insurance –
400 NE 50th Street
Oklahoma City, OK 73105-1816
Summary of the State:
- 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: 36 Okl. St. § 4055.10(A).
WHEN DOES LICENSE NEED TO BE RENEWED?: 36 Okl. St. § 4055.3(C). Licenses may be renewed from year to year on
the anniversary date upon payment of the annual renewal fees of Five Hundred Dollars ($ 500.00). Failure to pay the
fees by the renewal date results in expiration of the license.
IS BROKER COMPENSATION DISCLOSURE REQUIRED?: NO
IS THERE A MINIMUM PAYMENT REQUIREMENT?: YES. O.A.C. § 365:25-11-4.1. Standards for Evaluation of Reasonable Payments for Terminally Ill Insureds.
In order to assure that viators receive a reasonable return for viaticating an insurance policy, the return for viaticating a policy shall be no less than the payouts set out in Appendix W of this chapter for insureds who are terminally ill.
APPENDIX W. Payouts for Insureds Who Are Terminally Ill
|Insured’s Life Expectancy||Minimum Percentage of Face Value Less Outstanding Loans Received by Viator|
|Less than 6 months||80%|
|At least 6, but less than 12 months||70%|
|At least 12, but less than 18 months||65%|
|At least 18, but less than 24 months||60%|
WHEN DOES THE MONEY NEED TO BE IN ESCROW?: 36 Okl. St. § 4055.9(D). The viatical settlement provider shall
instruct the viator to send the executed documents required to effect the change in ownership, assignment or change in
beneficiary directly to the independent escrow agent. Within three (3) business days after the date the escrow agent
receives the document or from the date the viatical settlement provider receives the documents, if the viator
erroneously provides the documents directly to the provider, the provider shall pay or transfer the proceeds of the
viatical settlement into an escrow or trust account maintained in a state- or federally-chartered financial institution
whose de-posits are insured by the Federal Deposit Insurance Corporation (FDIC). Upon payment of the settlement
proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment or
change in beneficiary forms to the viatical settlement provider or related provider trust or other designated
representative of the viatical settlement provider. 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 settlement proceeds to the viator.
IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: YES. 36 Okl. St. § 4055.8(D). If the viatical
settlement provider transfers ownership or changes the beneficiary of the insurance policy, the provider shall
communicate in writing the change in ownership or beneficiary to the insured within twenty (20) days after the change.
IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: YES. 36 Okl. St. § 4055.9(A)(2). Within
twenty (20) days after a viator executes documents necessary to transfer any rights under an insurance policy or within
twenty (20) days of entering any agreement, option, promise or any other form of understanding, expressed or implied,
to viaticate the policy, the viatical settlement provider shall give written notice to the insurer that issued that insurance
policy that the policy has or will become a viaticated policy. The notice shall be accompanied by the documents required
by paragraph 3 of this subsection.
WHAT IS THE RESCISSION PERIOD?: 36 Okl. St. § 4055.9(C). All viatical settlement contracts entered into in this state
shall provide the viator with an absolute right to rescind the contract before the earlier of thirty (30) calendar days after
the date upon which the viatical settlement contract is executed by all parties or fifteen (15) calendar days after the
viatical settlement proceeds have been sent to the viator. Re-scission by the viator may be conditioned upon the viator
both giving notice and repaying to the viatical settlement provider within the rescission period all proceeds of the
settlement and any premiums, loans and loan interest paid by or on behalf of the viatical settlement provider in
connection with or as a consequence of the viatical settlement. If the insured dies during the rescission period, the
viatical settlement contract shall be deemed to have been rescinded, subject to repayment to the viatical settlement
provider or purchaser of all viatical settlement proceeds, and any premiums, loans and loan interest that have been paid
by the viatical settlement provider or purchaser, which shall be paid within sixty (60) calendar days of the death of the
insured. In the event of any rescission, if the viatical settlement provider has paid commissions or other compensation to
a viatical settlement broker in connection with the rescinded transaction, the viatical settlement broker shall refund all
such commissions and compensation to the viatical settlement provider within five (5) business days following receipt of
written demand from the viatical settlement provider, which demand shall be accompanied by either the viator’s notice
of rescission if rescinded at the election of the viator, or notice of the death of the insured if rescinded by reason of the
death of the insured within the applicable re-scission period.
IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – NAIC or OWN – State Approved. 36 Okl. St. §
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