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: Tex. Ins. Code § 1111A.014(n).
WHEN DOES LICENSE NEED TO BE RENEWED?: N/A
IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: Tex. Ins. Code § 1111A.012(a)(8).
IS THERE A MINIMUM PAYMENT REQUIREMENT?: NO
WHEN DOES THE MONEY NEED TO BE IN ESCROW?: Tex. Ins. Code § 1111A.014(j). Not later than the third business day after the date the provider receives from the owner the documents to effect the transfer of the insurance policy, the provider shall pay the proceeds of the settlement into 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 transfer to the owner the proceeds due to the owner not later than the third business day after the date the trustee or escrow officer receives from the insurer acknowledgment of the transfer of the insurance policy.
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. Tex. Ins. Code § 1111A.014(g). Not later than the 20th day after the date that 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 Section 1111A.013(c).
WHAT IS THE RESCISSION PERIOD?: Tex. Ins. Code § 1111A.014(i). A life settlement contract entered into in this state must provide that the owner may rescind the contract on or before 15 days after the date the contract is executed by all parties to the contract. Rescission, if exercised by the owner, is effective only if 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 If the insured dies during the rescission period, the contract is rescinded subject to repayment by the owner or the owner’s estate of all proceeds and any premiums, loans, and loan interest to the provider.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. Tex. Ins. Code § 1111A.014(b).
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