LD 1907
pg. 3
Page 2 of 38 An Act To Govern and Regulate Life Settlements Page 4 of 38
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LR 2724
Item 1

 
6.__Fraudulent viatical or life settlement act.__"Fraudulent
viatical or life settlement act" includes:

 
A.__Acts or omissions committed by any person who, knowingly
or with intent to defraud, for the purpose of depriving
another of property or for pecuniary gain, commits, or
permits its employees or its agents to engage in, acts
including:

 
(1)__Presenting, causing to be presented or preparing
with knowledge or belief that it will be presented to
or by a settlement provider, settlement producer,
financing entity, insurer, insurance producer or any
other person false material information, or concealing
material information, as part of, in support of or
concerning a fact material to one or more of the
following:

 
(a)__An application for the issuance of a
settlement contract or insurance policy;

 
(b)__The underwriting of a settlement contract or
insurance policy;

 
(c)__A claim for payment or benefit pursuant to a
settlement contract or insurance policy;

 
(d)__Premiums paid on an insurance policy;

 
(e)__Payments and changes in ownership or
beneficiary made in accordance with the terms of a
settlement contract or insurance policy;

 
(f)__The reinstatement or conversion of an
insurance policy;

 
(g)__The solicitation, offer, effectuation or sale
of a settlement contract or insurance policy;

 
(h)__The issuance of written evidence of a
settlement contract or insurance policy; or

 
(i)__A financing transaction; or

 
(2)__Employing any device, scheme or artifice to
defraud related to policies acquired pursuant to a
settlement contract;


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