North Carolina Administrative Code
Title 11 - INSURANCE
Chapter 12 - LIFE AND HEALTH DIVISION
Section .1700 - VIATICAL SETTLEMENTS
Section 12 .1716 - CONTRACTS AND PAYMENT OF PROCEEDS
Universal Citation: 11 NC Admin Code 12 .1716
Current through Register Vol. 39, No. 6, September 16, 2024
(a) Two specimen copies of each contract, application, brochure, and proposal shall be filed with the Division for approval under G.S. 58-58-220.
(b) In addition to the requirements in G.S. 58-58-250, every contract shall include the following provisions:
(1) If the viator
elects the right to rescind the contract, the provider's rights or interest in
the policy will terminate immediately upon the viator giving notice of the
rescission and tendering of the settlement proceeds together with any escrow
interest received by the viator.
(2) The amount of the fee or fees to be paid
by the viator to the provider in conjunction with the contract shall be clearly
stated, along with any conditions of payment or receipt of the fee or
fees.
(3) The contract together
with the application constitutes the entire agreement between the
parties.
(4) If the contract
provides for the payment of an additional settlement amount to the viator upon
the exercise of a guaranteed insurability option by the viator, the contract
shall disclose the amount of the additional settlement and the terms upon which
it shall be payable.
(5) If the
policy to be viaticated provides a guaranteed insurability option, the option
may only be exercised for the benefit of a person who has an insurable interest
in the life to be insured.
(c) Every application for a contract shall:
(1) Contain the viator's printed name and
signature;
(2) Be witnessed and
notarized by a person who does not have a financial interest in the policy or
viatical settlement contract; and
(3) Provide for an acknowledgment by the
viator of receipt of the information booklet required by
G.S.
58-58-245(a)(8).
Authority
G.S.
58-2-40;
58-58-220;
58-58-300;
Temporary
Adoption Eff. April 1, 2002;
Eff. April 1, 2003;
Pursuant to
G.S.
150B-21.3A, rule is necessary without
substantive public interest Eff. May 1, 2018.
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