Ohio § 3916.16

§ 3916.16.

(A)(1) It is a violation of this chapter for any person to enter into a viatical settlement

contract prior to the application for or issuance of a policy that is the subject

of the viatical settlement contract. (2) It is a violation of this chapter for any person to issue, solicit, market, or otherwise

promote the purchase of a policy for the purpose of or with an emphasis on selling

the policy. (B) It is a violation of this chapter for any person to enter into a viatical settlement

contract within a five-year period commencing with the date of issuance of the policy

unless the viator certifies to the viatical settlement provider that one or more of

the following conditions have been met within five years after the issuance of the

policy: (1) The policy was issued upon the viator's exercise of conversion rights arising out

of a group policy, provided the total of the time covered under the conversion policy

plus the time covered under the prior policy is at least sixty months.  The time covered under a group policy shall be calculated without regard to any

change in insurance carriers, provided the coverage has been continuous and under

the same group sponsorship. (2) The viator is a charitable organization with an insurable interest pursuant to division (B) of section 3911.09 the Revised Code that has received from the Internal Revenue Service a determination letter that is

currently in effect, stating that the charitable organization is exempt from federal

income taxation under subsection 501(a) and described in section 501(c)(3) of the

“Internal Revenue Code.” (3) The viator certifies and submits independent evidence to the viatical settlement

provider that one or more of the following conditions have arisen after the issuance

of the policy: (a) The viator or insured is terminally or chronically ill. (b) The viator's spouse dies. (c) The viator divorces the viator's spouse. (d) The viator retires from full-time employment. (e) The viator becomes physically or mentally disabled, and a physician, certified nurse-midwife,

clinical nurse specialist, or certified nurse practitioner determines that the disability

prevents the viator from maintaining full-time employment. (f) A court of competent jurisdiction enters a final order, judgment, or decree on the

application of a creditor of the viator and adjudicates the viator bankrupt or insolvent

or approves a petition seeking reorganization of the viator or appointing a receiver,

trustee, or liquidator to all or a substantial part of the viator's assets. (g) The sole beneficiary of the policy is a family member of the viator and the beneficiary

dies. (4) The viator enters into a viatical settlement contract more than two years after the

date of issuance of a policy and certifies that all of the following are true: (a) The viator has funded the policy using personal assets, which may include an interest

in the life insurance policy being viaticated up to the cash surrender value of the

policy or any financing agreement to fund the policy premiums entered into prior to

policy issuance or within two years of policy issuance was provided to the insurer

within thirty days of the date the agreement was executed and the financing agreement

was secured with personal assets. (b) The viator had no agreement or understanding with any other person to viaticate the

policy or transfer the benefits of the policy, including through an assumption or

forgiveness of a premium finance loan at any time prior to issuance of the policy

or during the two years after the date of issuance of the policy. (c) If requested by the insurer, the viator both disclosed to the insurer whether a person

other than the insurer obtained a life expectancy evaluation for settlement purposes

in connection with the application, underwriting, and issuance of the policy and provided

a copy of any such life expectancy evaluation to the insurer at the time of application. (d) The viator disclosed any financial arrangement, trust, or other arrangement, transaction,

or device that conceals the ownership or beneficial interest of the policy to the

insurer prior to the issuance of the policy. (C) Copies of the independent evidence described in division (B)(3) of this section and

documents required by section 3916.07 of the Revised Code shall be submitted to the insurer when the viatical settlement provider or any other

party entering into a viatical settlement contract with a viator submits a request

to the insurer for verification of coverage.  The copies shall be accompanied by a letter of attestation from the viatical settlement

provider that the copies are true and correct copies of the documents received by

the viatical settlement provider. (D) If the viatical settlement provider submits to the insurer a copy of the owner or

insured's certification and independent evidence described in division (B)(3) of this

section when the viatical settlement provider submits a request to the insurer to

effect the transfer of the policy or certificate to the viatical settlement provider,

the copy conclusively establishes that the viatical settlement contract satisfies

the requirements of this section, and the insurer shall timely respond to the request. (E) No insurer, as a condition of responding to a request for verification of coverage

or effecting the transfer of a policy pursuant to a viatical settlement contract,

may require the viator, insured, viatical settlement provider, or viatical settlement

broker to sign any form, disclosure, consent, or waiver form that has not been approved

by the superintendent of insurance for use in connection with viatical settlement

contracts. (F) Upon receipt of a properly completed request for change of ownership or beneficiary

of a policy, the insurer shall respond in writing within thirty calendar days to confirm

that the insurer has made the change or specify reasons that the change cannot be

processed.  No insurer shall unreasonably delay effecting change in ownership or beneficiary

or seek to interfere with any viatical settlement contract lawfully entered into in

this state. (G) A viatical settlement provider or viatical settlement broker that is party to a plan,

transaction, or series of transactions to originate, renew, continue, or finance a

policy with the insurer for the purpose of engaging in the business of viatical settlements

at any time prior to or during the first five years after the insurer issues the policy

shall fully disclose the plan, transaction, or series of transactions to the superintendent

of insurance.