Oklahoma § 36-4055.11 - Fraudulent viatical settlement acts - Filing of

§ 36-4055.11. Fraudulent viatical settlement acts - Filing of

advertising - "Free" insurance - Additional consideration - Emphasis

on settling policy prohibited.

A. With respect to any viatical settlement contract or

insurance policy, no viatical settlement broker knowingly shall

solicit an offer from, effectuate a viatical settlement with or make

a sale to any viatical settlement provider, viatical settlement

purchaser, financing entity or related provider trust that is

controlling, controlled by, or under common control with such

viatical settlement broker unless the relationship is disclosed to

the viator.

B. With respect to any viatical settlement contract or

insurance policy, no viatical settlement provider knowingly may

enter into a viatical settlement contract with a viator, if, in

connection with such viatical settlement contract, anything of value

will be paid to a viatical settlement broker that is controlling,

controlled by, or under common control with such viatical settlement

provider or the viatical settlement purchaser, financing entity or

related provider trust that is involved in such viatical settlement

contract unless the relationship is disclosed to the viator.

C. A violation of subsection A or B of this section shall be

deemed a fraudulent viatical settlement act.

D. No viatical settlement provider shall enter into a viatical

settlement contract unless the viatical settlement promotional,

advertising and marketing materials, as may be prescribed by

regulation, have been filed with the Insurance Commissioner. In no

event shall any marketing materials expressly reference that the

Oklahoma Statutes - Title 36. Insurance

insurance is “free” for any period of time. The inclusion of any

reference in the marketing materials that would cause a viator to

reasonably believe that the insurance is free for any period of time

shall be considered a violation of the Viatical Settlements Act of

2008.

E. No life insurance producer, insurance company, viatical

settlement broker, viatical settlement provider or viatical

settlement investment agent shall make any statement or

representation to the applicant or policyholder in connection with

the sale or financing of a life insurance policy to the effect that

the insurance is free or without cost to the policyholder for any

period of time unless provided in the policy.

F. No person providing premium financing shall receive any

proceeds, fees or other consideration from the policy or owner of

the policy that is in addition to the amounts required to pay

principal, interest, and any other reasonable costs or expenses in

type and amount incurred by the lender or borrower in connection

with the premium finance agreement, except for the event of a

default, unless either the default on the loan or transfer of the

policy in connection with the default occurs pursuant to an

agreement or understanding with any other person for the purpose of

evading regulation under this act. Any payments, charges, fees or

other amounts received by a person providing premium financing in

violation of this subsection shall be remitted to the original owner

of the policy or to the estate of the owner if the owner is deceased

at the time of the determination of the overpayment.

G. No person shall issue, solicit, market or otherwise promote

the purchase of an insurance policy for the purpose of, or with an

emphasis on, settling the policy.

Added by Laws 2008, c. 183, § 11, eff. Nov. 1, 2008. Amended by

Laws 2008, c. 344, § 7, eff. Nov. 1, 2008.