Okla. Stat. tit. 36, § 36-4055.9

Escrow - Minimum discounts - Contract to determine health status.

A. 1. A viatical settlement provider entering into a viatical

settlement contract shall first obtain:

a. if the viator is the insured, a written statement from

a licensed attending physician that the viator is of

sound mind and under no constraint or undue influence

to enter into a viatical settlement contract, and

b. a document in which the insured consents to the

release of his or her medical records to a licensed

viatical settlement provider, viatical settlement

broker and the insurance company that issued the life

insurance policy covering the life of the insured.

2. Within twenty (20) days after a viator executes documents

necessary to transfer any rights under an insurance policy or within

twenty (20) days of entering any agreement, option, promise or any

other form of understanding, expressed or implied, to viaticate the

policy, the viatical settlement provider shall give written notice

to the insurer that issued that insurance policy that the policy has

or will become a viaticated policy. The notice shall be accompanied

by the documents required by paragraph 3 of this subsection.

3. Within twenty (20) days after a viator executes documents

necessary to transfer any rights under an insurance policy or within

twenty (20) days of entering any agreement, option, promise or any

other form of understanding, expressed or implied, to viaticate the

policy, the viatical provider shall deliver a copy of the medical

release required under subparagraph b of paragraph 1 of this

subsection, a copy of the viator's application for the viatical

settlement contract, the notice required under paragraph 2 of this

subsection and a request for verification of coverage to the insurer

that issued the life policy that is the subject of the viatical

transaction. The National Association of Insurance Commissioner's

(NAIC's) form for verification of coverage shall be used unless

Oklahoma Statutes - Title 36. Insurance Page 888

another form is developed and approved by the Insurance

Commissioner.

4. The insurer shall respond to a request for verification of

coverage submitted on an approved form by a viatical settlement

provider or viatical settlement broker within thirty (30) calendar

days of the date the request is received and shall indicate whether,

based on the medical evidence and documents provided, the insurer

intends to pursue an investigation at this time regarding the

validity of the insurance contract or possible fraud. The insurer

shall accept a request for verification of coverage made on an NAIC

form, any form agreed upon by the insurer and the requestor, or any

other form approved by the Commissioner. The insurer shall accept

an original or facsimile or electronic copy of such request and any

accompanying authorization signed by the viator. Failure by the

insurer to meet its obligations under this subsection shall be a

violation of subsection C of Section 10 and Section 15 of Enrolled

Senate Bill No. 1980 of the 2nd Session of the 51st Oklahoma

Legislature.

5. Prior to or at the time of execution of the viatical

settlement contract, the viatical settlement provider shall obtain a

witnessed document in which the viator consents to the viatical

settlement contract, represents that the viator has a full and

complete understanding of the viatical settlement contract, that he

or she has a full and complete understanding of the benefits of the

life insurance policy, acknowledges that he or she is entering into

the viatical settlement contract freely and voluntarily and, for

persons with a terminal or chronic illness or condition,

acknowledges that the insured has a terminal or chronic illness and

that the terminal or chronic illness or condition was diagnosed

after the life insurance policy was issued.

6. The insurer shall not unreasonably delay effecting change of
that he or she is entering into

the viatical settlement contract freely and voluntarily and, for

persons with a terminal or chronic illness or condition,

acknowledges that the insured has a terminal or chronic illness and

that the terminal or chronic illness or condition was diagnosed

after the life insurance policy was issued.

6. The insurer shall not unreasonably delay effecting change of

ownership or beneficiary with any life settlement contract entered

into in this state or with a resident of this state.

7. If a viatical settlement broker performs any of these

activities required of the viatical settlement provider, the

provider is deemed to have fulfilled the requirements of this

section.

B. All medical information solicited or obtained by any

licensee shall be subject to the applicable provisions of state law

relating to confidentiality of medical information.

C. All viatical settlement contracts entered into in this state

shall provide the viator with an absolute right to rescind the

contract before the earlier of thirty (30) calendar days after the

date upon which the viatical settlement contract is executed by all

parties or fifteen (15) calendar days after the viatical settlement

proceeds have been sent to the viator. Rescission by the viator may

be conditioned upon the viator both giving notice and repaying to

Oklahoma Statutes - Title 36. Insurance Page 889

the viatical settlement provider within the rescission period all

proceeds of the settlement and any premiums, loans and loan interest

paid by or on behalf of the viatical settlement provider in

connection with or as a consequence of the viatical settlement. If

the insured dies during the rescission period, the viatical

settlement contract shall be deemed to have been rescinded, subject

to repayment to the viatical settlement provider or purchaser of all

viatical settlement proceeds, and any premiums, loans and loan

interest that have been paid by the viatical settlement provider or

purchaser, which shall be paid within sixty (60) calendar days of

the death of the insured. In the event of any rescission, if the

viatical settlement provider has paid commissions or other

compensation to a viatical settlement broker in connection with the

rescinded transaction, the viatical settlement broker shall refund

all such commissions and compensation to the viatical settlement

provider within five (5) business days following receipt of written

demand from the viatical settlement provider, which demand shall be

accompanied by either the viator's notice of rescission if rescinded

at the election of the viator, or notice of the death of the insured

if rescinded by reason of the death of the insured within the

applicable rescission period.

D. The viatical settlement provider shall instruct the viator

to send the executed documents required to effect the change in

ownership, assignment or change in beneficiary directly to the

independent escrow agent. Within three (3) business days after the

date the escrow agent receives the document or from the date the

viatical settlement provider receives the documents, if the viator

erroneously provides the documents directly to the provider, the

provider shall pay or transfer the proceeds of the viatical

settlement into an escrow or trust account maintained in a state- or

federally-chartered financial institution whose deposits are insured

by the Federal Deposit Insurance Corporation (FDIC). Upon payment

of the settlement proceeds into the escrow account, the escrow agent

shall deliver the original change in ownership, assignment or change

in beneficiary forms to the viatical settlement provider or related

provider trust or other designated representative of the viatical

settlement provider. Upon the escrow agent's receipt of the

acknowledgment of the properly completed transfer of ownership,

assignment or designation of beneficiary from the insurance company,
shall deliver the original change in ownership, assignment or change

in beneficiary forms to the viatical settlement provider or related

provider trust or other designated representative of the viatical

settlement provider. Upon the escrow agent's receipt of the

acknowledgment of the properly completed transfer of ownership,

assignment or designation of beneficiary from the insurance company,

the escrow agent shall pay the settlement proceeds to the viator.

E. Failure to tender consideration to the viator for the

viatical settlement contract within the time set forth in the

disclosure pursuant to paragraph 7 of subsection A of Section 8 of

Enrolled Senate Bill No. 1980 of the 2nd Session of the 51st

Oklahoma Legislature renders the viatical settlement contract

voidable by the viator for lack of consideration until the time

consideration is tendered to and accepted by the viator. Funds

Oklahoma Statutes - Title 36. Insurance Page 890

shall be deemed sent by a viatical settlement provider to a viator

as of the date that the escrow agent either releases funds for wire

transfer to the viator, places a check for delivery to the viator

via United States Postal Service or other nationally recognized

delivery service or make an electronic payment to the viator.

F. In order to assure that a viator, at the time of the

viatical settlement has a life expectancy of less than two (2)

years, receives reasonable return for viaticating an insurance

policy, the following shall be minimum discounts:

Minimum Percentage of Face

Insured's Life Value Less Outstanding Loans

Expectancy Received By Viator

Less than six (6) months 80%

At least six (6) but less than

twelve (12) months 70%

At least twelve (12) but less

than eighteen (18) months 65%

At least eighteen (18) months but

less than twenty-four (24) months 60%

G. Contacts with the insured for the purpose of determining the

health status of the insured by the viatical settlement provider or

viatical settlement broker after the viatical settlement has

occurred shall only be made by a viatical settlement provider or

broker licensed in this state or its authorized representatives and

shall be limited to once every three (3) months for insureds with a

life expectancy of more than one (1) year, and to no more than once

per month for insureds with a life expectancy of one (1) year or

less. The provider or broker shall explain the procedure for these

contacts at the time the viatical settlement contract is entered

into. The limitations set forth in this subsection shall not apply

to any contacts with an insured for reasons other than determining

the insured's health status. Viatical settlement providers and

viatical settlement brokers shall be responsible for the actions of

their authorized representatives.