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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: Utah Code Ann. § 31A-36-111(2).
WHEN DOES LICENSE NEED TO BE RENEWED?: N/A
IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. See: U.A.C. R590-222-8(2)(c).
IS THERE A MINIMUM PAYMENT REQUIREMENT?: YES. U.A.C. R590-222-9. Standards for Evaluation of Reasonable Payments.
The life settlement provider is responsible the net proceeds from the life settlement exceed the benefits that are available at the time of the life settlement under the terms of the policy including cash surrender, long-term care, and accelerated death benefits.
WHEN DOES THE MONEY NEED TO BE IN ESCROW?: Utah Code Ann. § 31A-36-110(1). A life settlement provider shall instruct the owner to send the executed documents required to effect the change in ownership or assignment or change of beneficiary of the affected policy to a designated independent escrow agent.
Within three business days after the day on which the escrow agent receives the documents, or within three business days after the day on which the life settlement provider receives the documents if by mistake they are sent directly to the life settlement provider, the life settlement provider shall deposit the proceeds of the life settlement into an escrow or trust account of the escrow agent in a federally insured depository institution.
IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: YES. Utah Code Ann. § 31A-36-109(1). If a life settlement provider transfers ownership or changes the beneficiary of a settled pol-icy, the life settlement provider shall inform the insured of the transfer or change within 20 calendar days.
IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: YES. Utah Code Ann. § 31A-36-109(3). Within 20 calendar days after an owner executes documents necessary to transfer rights under a policy, or enters into an agreement in any form, express or implied, to settle the policy, the life settlement provider shall give written notice to the issuer of the policy that the policy has or will become settled. The notice shall be accompanied by a copy of the documents required by Subsection (4).
WHAT IS THE RESCISSION PERIOD?: Utah Code Ann. § 31A-36-109(7). (a)(i) A life settlement entered into in this state shall reserve to the owner an unconditional right to rescind the life settlement within the rescission period provided for in this Sub-section (7).
(ii) The rescission period ends 15 calendar days after the day on which the owner receives the proceeds of the life settlement.
(iii) Rescission by an owner may be conditioned on the owner giving notice and repaying to the life settlement provider within the rescission period all proceeds of the life settlement and any premium, loan, or loan interest paid by or on behalf of the life settlement provider in connection with or as a consequence of the life settlement.
(b) If the insured dies during the rescission period, the life settlement is considered to be rescinded if the proceeds, premiums, loans, and loan interest paid by the life settlement provider or life settlement purchaser are repaid within 60 calendar days of the day on which the insured dies.
IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – NAIC or OWN – State Approved. U.A.C. R590-222-10(1)(b) and Appendix D.
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