Code of Massachusetts Regulations
940 CMR - OFFICE OF THE ATTORNEY GENERAL
Title 940 CMR 18.00 - Viatical Settlements And Viatical Loans
Section 18.07 - Prohibited Practices

(1) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker or Representative, or a Viatical Loan Provider, Broker or Representative to make any representation or statement of fact if the representation or statement is false or misleading or has the tendency or capacity to be misleading, or if the Viatical Settlement Provider, Broker or Representative, or Viatical Loan Provider, Broker or Representative does not have sufficient information upon which a reasonable belief in the truth of the representation or statement could be based. Such claims or representations include, but are not limited to, the availability, terms, conditions, or charges, incident to the Viatical Settlement or Viatical Loan Agreement. In addition, other such claims and representations by the Viatical Settlement Provider, or Broker or Representative, or the Viatical Loan Provider, or Broker or Representative may include the amount of the brokerage fee, if any, the services which will be provided or performed for the brokerage fee, whether the Viator or Viatical Loan Applicant /Borrower has the right to cancel any agreement with the Viatical Settlement Provider or Broker or Viatical Loan Provider or Broker, the Viator's or Viatical Loan Applicant's or Borrower's right to refund of the brokerage fee, and the identity of the Viatical Settlement Provider or Viatical Loan Provider that will provide the Settlement or Loan.

(2) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker or Representative, or Viatical Loan Provider, Broker or Representative to fail to comply with all applicable federal and state laws, including licensing requirements.

(3) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker or Representative or Viatical Loan Provider, Broker or Representative to include false, misleading or deceptive representations in advertising, promotional, or informational publications regarding Viatical Settlements or Viatical Loans.

(4) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker or Representative, or Viatical Loan Provider, Broker or Representative to mass produce and/or distribute brochures or advertisements containing Patient Identifying Information.

(5) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker or Representative, or Viatical Loan Provider, Broker or Representative to fail to mail to the last known address of, or to provide in person to, a prospective Viator or Borrower, a written offer of a Viatical Settlement Contract or Viatical Loan Agreement, respectively, containing all terms of the offer detailed therein in accordance with the terms contained in 940 CMR 18.05 and 18.06.

(6) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker or Representative, or Viatical Loan Provider, Broker or Representative to provide Patient Identifying Information to any Person who is not the owner of the policy, unless the Insured has provided informed, written consent to the release of such information.

(7) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker, Representative, or Viatical Loan Provider, Broker, or Representative to fail to obtain from any Person or entity who is provided with Patient Identifying Information a signed affirmation that such Person or entity shall not further divulge such information without procuring the express, written consent of the Insured in each instance in which the information is to be divulged. Notwithstanding the foregoing, if a Viatical Settlement Provider, Broker or Representative or Viatical Loan Provider, Broker or Representative is served with a subpoena and, therefore, compelled to produce records containing Patient Identifying Information, it shall notify the Viator or Viatical Loan Applicant/ Borrower and the Insured within five business days after receiving notice of such subpoena.

(8) It is an unfair or deceptive act or practice for a Viatical Settlement Provider to fail to maintain the funds for the purchase of the insurance policy death benefit in an escrow account controlled by a third party escrow agent prior to the final payment, whether by lump sum or by installments, and transfer of ownership of the policy.

(9) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker, or Representative, or Viatical Loan Provider, Broker, or Representative to pay a finder's fee to any Person who is providing, or has previously provided, care or services to the Insured, including, but not limited to, any medical or mental health provider, social services provider, attorney, accountant, financial advisor or planner, investment advisor or planner or any other Person who has a demonstrable conflict of interest in collecting a finder's fee.

(10) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker or Representative, or Viatical Loan Provider, Broker or Representative to charge an application and/or brokerage fee which significantly deviates from industry-wide standards or is otherwise unconscionable.

(11) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker or Representative, or Viatical Loan Provider, Broker or Representative to accept any brokerage fee, application fee or other fee, prior to the Viator's receipt of the applicable disclosure forms mandated by 940 CMR 18.05(1) or 18.06(1) at the times specified in 940 CMR 18.05(7) or 18.06(6). Notwithstanding the foregoing, an application or brokerage fee may be accepted if the Viatical Settlement Provider, Broker or Representative, or Viatical Loan Provider, Broker or Representative provides written notice, prior to the receipt of such fee, as to whether the fee is refundable.

(12) It is an unfair or deceptive act or practice for a Viatical Loan Provider, Broker or Representative to procure or negotiate for a Borrower a Viatical Loan with rates or other terms which significantly deviate from industry-wide standards or which are otherwise unconscionable.

(13) It is an unfair or deceptive act or practice for a Viatical Settlement Provider or Viatical Loan Provider to act also as a Broker, whether entitled to collect a fee directly or indirectly, in the same Viatical Settlement or Viatical Loan Agreement.

(14) It is an unfair or deceptive act or practice for a Viatical Settlement or Viatical Loan Provider to fail to disburse funds in accordance with any commitment or agreement with the Viator.

(15) It is an unfair or deceptive act or practice for a Viatical Settlement Provider, Broker or Representative, or Viatical Loan Provider, Broker or Representative to accept any fees which were not disclosed in accordance with 940 CMR 18.00 or applicable law.

(16) It is an unfair or deceptive act or practice for a Viatical Settlement Provider or Broker to fail to mail to the last known address of, or to provide in person to, the Viator, written notice of the names of any Brokers or Representatives who shall be paid a fee, commission or any other valuable consideration by the Viatical Settlement Provider as a result of the settlement and the amounts which shall be paid prior to execution of the settlement.