Current through all regulations passed and filed through September 16, 2024
(A)
Purpose
The purpose of this rule is to provide
standards for applicants applying for initial licensure as a viatical
settlement provider in this state or renewal of a previously-issued license.
This rule also provides form filing requirements and fees for licenses,
renewals, and form approvals.
(B)
Authority
This rule is promulgated under the
authority granted the superintendent of insurance pursuant to sections
3901.011,
3901.041,
3901.19 to
3901.26,
3916.05, and
3916.20 of the Revised
Code.
(C)
Applicability and scope
This rule applies to all persons
applying for or renewing a license or who are currently licensed as a viatical
settlement provider in this state.
(D)
Definitions
The definitions set forth in Chapter
3916. of the Revised Code are incorporated by reference herein. The following
are terms used in this rule:
(1)
"Applicant"
means a person who is applying to be licensed or applying to renew a license as
a viatical settlement provider.
(2)
"Person" means
an individual or a business entity.
(E)
Applying for an
initial viatical settlement provider license
(1)
To apply for a
license to operate as a viatical settlement provider in this state, the
applicant shall submit a completed application on a form prescribed by the
superintendent.
(2)
An application shall not be considered complete until
the superintendent receives the application completed in its entirety, required
attachments, and the applicable fee.
(3)
The applicant
shall be notified if the superintendent considers an application to be
incomplete and the application shall not be considered for licensure.
(4)
All
fees paid, as set forth in this rule, including the initial application filing
fee, are non-refundable and non-transferable.
(5)
A viatical
settlement provider shall use only the name that appears on the provider's
license, except:
(a)
A viatical settlement provider that intends to do
business in this state under any name other than the name that appears on the
provider's license shall notify the superintendent in writing prior to using
the assumed name in this state.
(b)
Viatical
settlement providers shall include the name appearing on the provider's license
in all advertisements, correspondence, and other documents used by the provider
in this state.
(F)
Applying for
renewal of a viatical settlement provider license
(1)
A license as a
viatical settlement provider expires on March thirty-first of the year
following the initial issuance or the continuance of a previously issued or
renewed license.
(2)
To renew a viatical settlement provider license to
operate in this state, the applicant shall submit a renewal application on a
form prescribed by the superintendent and the applicable fee. All information
requested in the renewal application must be provided.
(a)
The applicant
shall be notified if the superintendent considers an application to be
incomplete and the application shall not be considered for renewal.
(b)
All
fees are non-refundable and non-transferable.
(G)
Request to surrender a viatical settlement provider license
(1)
A viatical
settlement provider may submit a request to voluntarily surrender its license
at any time using a form approved for that purpose by the superintendent. No
request for license surrender shall be effective until approved by the
superintendent.
(2)
A request for voluntary surrender of a viatical
settlement provider license shall not be accepted under either of the following
circumstances:
(a)
The superintendent has, prior to the time of the
request, already commenced a formal investigation of any allegation of a
violation of Chapter 3916. of the Revised Code or any rule promulgated
thereunder that, if proven, would result in administrative action on the
viatical settlement provider's license; or,
(b)
The
superintendent has issued a notice of opportunity for hearing to the
provider.
(H)
Form filings for
licensed viatical settlement providers
(1)
No viatical
settlement provider forms shall be used in this state or accepted for filing
and approval for use in this state until after a license has been issued.
(2)
After
a license is issued, but before the viatical settlement provider may conduct
business in this state, the viatical settlement provider shall submit the forms
required to be filed pursuant to division (A) of section
3916.05 of the Revised Code and
obtain approval from the superintendent for use in this state.
(3)
In addition to
all other requirements for approval, all forms filed with the superintendent
for approval that require the signature of an Ohio resident viator shall
include provisions whereby all parties to the viatical settlement transaction
consent to the jurisdiction of the laws of the state of Ohio, except as
provided in division (B)(1) of section
3916.02 of the Revised Code or
federal law, as applicable.
(I)
Form filing fees
The fee for a new form filing is fifty
dollars per filing.
(J)
Application and
license renewal fees for viatical settlement providers
(1)
The application
fee for initial licensure is one thousand dollars.
(2)
The application
fee for license renewal is five hundred dollars.
(K)
Requirements for
surety bonds submitted as proof of financial responsibility
(1)
All applicants
for a viatical settlement provider license and all licensed viatical settlement
providers must provide proof of financial responsibility as defined in division
(D) of section 3916.03 of the Revised
Code.
(a)
All
surety bonds, unconditional and irrevocable letters of credit, and deposits of
cash and securities ("surety instruments") posted with this state, or drawn in
favor of this state, to meet financial responsibility requirements shall be
kept current and fully paid for by the applicant, and if a license is issued,
the surety instruments shall be kept current and fully paid by the licensee at
all times until released by the department in a writing signed by the
superintendent.
(b)
Release of surety instruments.
(i)
Surety
instruments in place or on deposit for a currently licensed viatical settlement
provider may be released by the department upon receipt of audited financial
statements indicating positive equity of two hundred fifty thousand dollars
and, in the department's sole discretion, acceptable pro-forma quarterly
financial statements for the following four quarters indicating equity at or
above the two hundred fifty thousand dollar level at all times.
(ii)
In
the event of the denial of a viatical settlement provider license application
by the superintendent or a withdrawal of a pending viatical settlement provider
license application by the applicant, surety instruments in place or on deposit
may be released by the department upon receipt of a formal withdrawal letter
from the applicant.
(iii)
In the event of acceptance by the superintendent of
surrender of a viatical settlement provider license, or in the case of the
revocation or non-renewal of a viatical settlement provider license by the
superintendent, surety instruments in place or on deposit may be released by
the department upon receipt of a formal withdrawal letter from the licensee or
after the revocation order has been signed by the superintendent, and upon
submission by the licensee of written documentation satisfactory to the
superintendent confirming that all contracts for purchase of policies by the
licensee from Ohio viators have been fully executed, and the viators have
received all funds owed to them by the licensee.
(iv)
No surety
instrument in place or on deposit by a viatical settlement provider as proof of
compliance with division (D) of section
3916.03 of the Revised Code
shall be terminated for any reason without prior approval of the
superintendent.
(L)
Standards for
evaluation of reasonable payments
(1)
In order to assure that viators receive a reasonable
return for viaticating an insurance policy, the following shall be the minimum
payouts.
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(2)
For viatical settlement transactions involving
terminally or chronically ill viators, the payout shall be increased by one
hundred per cent of any net cash surrender value of the insurance policy at the
time the viatical contract is issued.
(3)
For viatical
settlement transactions involving terminally or chronically ill viators,
payouts may be reduced by the minimum premium (including premiums payable for
additional benefits retained at the option of the viator), if any, required in
order to keep the contract in force for the duration of the viator's remaining
life expectancy. Other than this allowable reduction in payout, there shall be
no other retention of funds for expenses or broker's fees.
(M)
Penalties
A violation of this rule is an unfair
and deceptive trade practice under sections
3901.19 to
3901.26 of the Revised Code and
a violation of Chapter 3916. of the Revised Code.
(N)
Severability
If any paragraph, subparagraph, term,
or provision of this rule be adjudged invalid for any reason, such judgment
shall not affect, impair, or invalidate any other paragraph, subparagraph,
term, or provision of this rule, but the remaining paragraphs, subparagraphs,
terms, or provisions shall be and continue in full force and effect.
Five Year Review (FYR) Dates:
08/14/2015 and
08/14/2020
Promulgated
Under: 119.03
Statutory
Authority: 3916.05,
3916.20
Rule
Amplifies: 3916.01,
3916.02,
3916.03,
3916.05,
3916.16,
3916.20
Prior
Effective Dates: 11/5/2010
