3 AAC 31.360 - Reporting requirements for viatical settlement providers

On or before March 1 of each calendar year, the compliance officer of a viatical settlement firm licensed in this state or an individual viatical settlement provider not in a firm licensed in this state shall make a report of all viatical settlement transactions and shall distinguish between transactions with viators who are residents of this state and transactions with all viators in total. The report must contain the following information for the previous calendar year:

(1) for each viatical settlement transaction during the previous calendar year,

(A) the effective date of the viatical settlement contract;

(B) the viator's state of residence on the effective date of the viatical settlement contract;

(C) the mean life expectancy in months of the insured on the effective date of the viatical settlement contract;

(D) the total face amount of the life insurance policy viaticated;

(E) the amount of net death benefit for the life insurance policy viaticated;

(F) the estimated total premiums necessary to keep the life insurance policy in force for the mean life expectancy of each insured;

(G) the proceeds paid to each viator under a viatical settlement contract;

(H) the source of the viaticated policy, whether

(i) from a viatical settlement broker;

(ii) by direct purchase from a viator; or

(iii) through the secondary market, from an entity other than a viator or viatical settlement broker;

(I) a description of the life insurance policy that is the subject of the viatical settlement contract; the description must include an indication of whether the life insurance policy is

(i) group or individual; and

(ii) term, whole, universal, or variable;

(J) whether the life insurance policy is still within the contestable or suicide period at the effective date of the viatical settlement contract;

(K) a classification of the diagnosis of the insured, according to at least one of the following disease categories:

(i) infectious and parasitic diseases except AIDS/HIV;

(ii) AIDS/HIV;

(iii) neoplasms;

(iv) endocrine disorders, nutritional and metabolic diseases, and immunity disorders other than AIDS/HIV;

(v) diseases of the blood and blood-forming organs;

(vi) mental disorders;

(vii) diseases of the nervous system and sense organs;

(viii) diseases of the circulatory system;

(ix) diseases of the respiratory system;

(x) diseases of the digestive system;

(xi) diseases of the genitourinary system;

(xii) complications of pregnancy, childbirth, and the puerperium;

(xiii) diseases of the skin and subcutaneous tissue;

(xiv) diseases of the musculoskeletal system and connective tissue;

(xv) congenital anomalies;

(xvi) certain conditions originating in the perinatal period;

(xvii) symptoms, signs, and ill-defined conditions;

(xviii) injury and poisoning;

(L) how proceeds from the viatical settlement contract were funded, whether by

(i) institutional investors; or

(ii) private investors; and

(M) the name and address of the viatical settlement broker through whom the viatical settlement provider purchased a policy from a viator who resided in this state on the effective date of the viatical settlement contract;

(2) for a viatical settlement contract in which death occurred during the previous calendar year,

(A) the effective date of the viatical settlement contract;

(B) the viator's state of residence on the effective date of the viatical settlement contract;

(C) the mean life expectancy in months of each insured assumed by the viatical settlement provider on the effective date of the viatical settlement contract;

(D) the amount of net death benefit collected by the viatical settlement provider under the life insurance policy viaticated;

(E) the total premiums paid to keep the life insurance policy in force, whether

(i) a waiver of premium occurs in the event of disability; or

(ii) not applicable because the policy is paid up and premiums are not due;

(F) the proceeds paid to each viator under a viatical settlement contract;

(G) a classification of the diagnosis of the insured, according to at least one of the following disease categories:

(i) infectious and parasitic diseases except AIDS/HIV;

(ii) AIDS/HIV;

(iii) neoplasms;

(iv) endocrine disorders, nutritional and metabolic diseases, and immunity disorders other than AIDS/HIV;

(v) diseases of the blood and blood-forming organs;

(vi) mental disorders;

(vii) diseases of the nervous system and sense organs;

(viii) diseases of the circulatory system;

(ix) diseases of the respiratory system;

(x) diseases of the digestive system;

(xi) diseases of the genitourinary system;

(xii) complications of pregnancy, childbirth, and the puerperium;

(xiii) diseases of the skin and subcutaneous tissue;

(xiv) diseases of the musculoskeletal system and connective tissue;

(xv) congenital anomalies;

(xvi) certain conditions originating in the perinatal period;

(xvii) symptoms, signs, and ill-defined conditions;

(xviii) injury and poisoning;

(H) the date of the insured's death;

(I) the number of months between the effective date of the viatical settlement contract and the date of the insured's death;

(J) the difference between the number reported under (I) of this paragraph and the number reported under (C) of this paragraph; and

(K) the name and address of the viatical settlement broker through whom the viatical settlement provider purchased a policy from a viator who resided in this state on the effective date of the viatical settlement contract;

(3) the number of life insurance policies considered for a viatical settlement contract and rejected by the viatical settlement provider, viatical settlement broker, or viatical settlement representative;

(4) the number of life insurance policies purchased in the secondary market as a percentage of total life insurance policies purchased.

Notes

3 AAC 31.360

Eff. 8/25/2002, Register 163

In 2010 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 21.89.110 as AS 21.96.110. As of Register 196 (January 2011), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to the authority citation that follows 3 AAC 31.360, so that the citation to former AS 21.89.110 now refers to the renumbered statute, AS 21.96.110.

Authority:AS 21.06.090

AS 21.96.110