LD 1907
pg. 22
Page 21 of 38 An Act To Govern and Regulate Life Settlements Page 23 of 38
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LR 2724
Item 1

 
5. Effect on government benefits. The fact that receipts
receipt of viatical settlements the proceeds of the settlement
may adversely affect the recipient's eligibility for Medicaid or
other means-based government programs, benefits or entitlements
and that advice should be obtained from the appropriate agencies;

 
6. Right to rescind. The policy owner's or certificate
holder's fact that the viator has the right to rescind a viatical
settlement contract before the earlier of the 30th day 30
calendar days after the date upon which the viatical settlement
contract is executed by both all parties or the 15th day 15
calendar days after the date upon which payment is received by
the viator as provided in section 6809; and.__If exercised by the
viator, rescission is effective only if both notice of the
rescission is given and repayment of all proceeds and any
premiums, loans and loan interest to the settlement provider is
made within the rescission period.__If the insured dies during
the rescission period, the settlement contract is deemed to have
been rescinded, subject to repayment of all proceeds and any
premiums, loans and loan interest to the settlement provider;

 
7. Potential reduction or loss of benefits to beneficiary.
The fact that a consequence of the viatical settlement will be
the loss of some or all of the death benefit payable under the
life insurance policy or certificate to the current beneficiary
or beneficiaries of the policy or certificate being viaticated.
entering into a settlement contract may cause other rights or
benefits, including conversion rights and waiver of premium
benefits that may exist under the policy or certificate, to be
forfeited by the viator and that assistance should be sought from
a financial adviser;

 
8. Funds.__The fact that funds will be sent to the viator
within 3 business days after the settlement provider has received
the insurer's or group administrator's acknowledgment that
ownership of the policy or interest in the certificate has been
transferred and the beneficiary has been designated; and

 
9.__Privacy disclosure.__A statement containing the following
language: "All medical, financial or personal information
solicited or obtained by a settlement provider or settlement
producer about an insured, including the insured's identity or
the identity of family members, a spouse or a significant other,
may be disclosed as necessary to effect the settlement contract
between the viator and the settlement provider. If you are asked
to provide this information, you will be asked to consent to the
disclosure. The information may be provided to someone who buys
the policy or provides funds for the purchase. You may be asked
to renew your permission to share information every 2 years."


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