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Relevant State Departments of Insurance Contact Info
Pennsylvania Department of Insurance –
1326 Strawberry Square
Harrisburg, Pennsylvania 17120
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: 40 P.S. § 626.9).
WHEN DOES LICENSE NEED TO BE RENEWED?: 40 P.S. § 626.3(e). A license issued under this section shall expire and may be renewed on the anniversary month of the initial date of licensure upon payment of the appropriate renewal fee and application with the department on a form required by the department. Failure to pay the fee or submit the renewal form within the terms required by the department shall be deemed voluntary termination of the license. The issuance of a renewal license to a viatical settlement provider shall be subject to approval of the appropriate application and financial information filed with the department.
IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: 40 P.S. § 626.7(d).
IS THERE A MINIMUM PAYMENT REQUIREMENT?: NO
WHEN DOES THE MONEY NEED TO BE IN ESCROW?: 40 P.S. § 626.8(i). 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 business days after the date the escrow agent receives the document, the proceeds of the viatical settlement shall be placed into an escrow or trust account maintained in a federally or State- chartered financial institution whose deposits 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. Upon the licensed provider’s receipt of the properly completed acknowledgment of the transfer of ownership, assignment or designation of beneficiary from the insurance company, the licensed provider shall instruct the escrow agent to pay the settlement proceeds to the viator. Payment shall be made within three business days of the date the provider received the acknowledged forms from the insurance company.
IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: YES. 40 P.S. § 626.7(e). If the viatical settlement provider transfers ownership or changes the beneficiary of the insurance 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?: YES. 40 P.S. § 626.8(b). Within 20 days after a viator executes documents necessary to transfer any rights under an insurance policy or within 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. If the viator is terminally or chronically ill, the no-tice must be accompanied by a written statement from the viator required by subsection (a)(1)(iv).
WHAT IS THE RESCISSION PERIOD?: 40 P.S. § 626.8(h). All viatical settlement contracts entered into in this State shall provide the viator with an unconditional right to rescind the contract for 30 days from the date of contract and at least 15 calendar days from the receipt of the viatical settlement proceeds by the viator. 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 of all viatical settlement proceeds.
IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – OWN – State Approved. 40 P.S. § 626.8(e).
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