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Summary of the State:
- Summary Verbiage
TYPE OF LICENSE (LIFE SETTLEMENT/VIATICAL SETTLEMENT): LIFE SETTLEMENT
WHAT DOES THE STATE DEFINE AS CONTESTABLE?: 2 YEARS
WHAT IS THE REQUIRED HOLDING PERIOD?: 2 YEARS. See: R.I. Gen. Laws § 27-72-11(n).
WHEN DOES LICENSE NEED TO BE RENEWED?: R.I. Gen. Laws § 27-72-3(h). The term of a provider license shall be perpetual; provided, that the provider files the annual report and pays the fee as prescribed by the commissioner. Failure to file the annual re-port or pay the fees on or before the due date shall result in immediate suspension of the license.
IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: R.I. Gen. Laws § 27-72-9(c)(4).
IS THERE A MINIMUM PAYMENT REQUIREMENT?: NO
WHEN DOES THE MONEY NEED TO BE IN ESCROW?: R.I. Gen. Laws § 27-72-11(j). Within three (3) 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 acknowledgement of the transfer by the issuer of the policy. The trustee or escrow agent shall be required to transfer the proceeds due to the owner within three (3) business days of acknowledgement 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. R.I. Gen. Laws § 27-72-11(g). Within twenty (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 be-come subject to a life settlement contract. The notice shall be accompanied by the documents required by subdivision 27-72-10(a)(2).
WHAT IS THE RESCISSION PERIOD?: R.I. Gen. Laws § 27-72-11(i). All life settlement contracts entered into in this state shall provide that the owner may rescind the contract on or before fifteen (15) days after the date it is executed by all parties there-to. 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 If the insured dies during the rescission period, the contract shall be deemed to have been rescinded subject to repayment by the owner or the owner’s estate of all proceeds and any premiums, loans, and loan interest to the provider.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 – OWN – State Approved. R.I. Gen. Laws § 27-72-11(b).
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