Connecticut Administrative Code
Title 38a - Insurance Department
465 - Viatical Settlements
Section 38a-465-9 - Interest retained by owner

Universal Citation: CT Reg of State Agencies 38a-465-9

Current through March 14, 2024

(a) If a provider enters a life settlement contract that allows the owner to retain an interest in the policy, the life settlement contract shall contain the following provisions:

(1) A provision that the provider will effect the transfer of the amount of the death benefit only to the extent or portion of the amount settled. Benefits in excess of the amount settled shall be paid directly to the owner or the owner's beneficiary by the insurance company;

(2) a provision that the provider will, upon acknowledgment of the perfection of the transfer, either
(A) advise the insured, in writing that the insurance company has confirmed the owner's interest in the policy or

(B) send a copy of the instrument sent from the insurance company to the provider that acknowledges the owner's interest in the policy; and

(3) a provision that apportions the premiums to be paid by the provider and the owner. It is permissible for the life settlement contract to specify that all premiums shall be paid by the provider. The contract may also require that the owner reimburse the provider for the premiums attributable to the retained interest.

(b) If a provider enters a life settlement contract that pertains to a contract with benefits that are in addition to the basic face amount of the life insurance, including but not limited to, benefits such as accidental death or double indemnity, the owner shall retain an interest in the policy to the extent of such rights. The owner may sell these additional rights to the provider if the life insurance policy does not prohibit the sale of such rights and the life settlement contract discloses or acknowledges the purchase of such rights.

Disclaimer: These regulations may not be the most recent version. Connecticut may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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