Vermont § 3843 - General rules

§ 3843. General rules

• (a)(1) A life settlement provider entering into a life settlement contract shall first obtain: (A) if the policy owner is the insured, a written statement from a licensed attending
  physician that the policy owner is of sound mind and under no constraint or undue
  influence to enter into a life settlement contract; and (B) if the medical records of the insured are intended or required to be released in connection
  with a proposed life settlement transaction, a document in which the insured consents
  to the release of his or her medical records to a licensed life settlement provider,
  life settlement broker, the insurance company that issued the life insurance policy
  covering the life of the insured, and any other person to whom the medical records
  will be released. (2) Within 20 days after a policy owner executes documents necessary to transfer any rights
  under an insurance policy or within 20 days of entering any agreement, option, promise,
  or any other form of understanding, expressed or implied, to subject the policy to
  a life settlement contract, the life settlement provider shall give written notice
  to the insurer that issued that insurance policy that the policy has or will become
  a policy subject to a life settlement contract. The notice shall be accompanied by
  the documents required by subdivision (3) of this subsection. (3) The life settlement provider shall deliver a copy of the medical release required
  under subdivision (1)(B) of this subsection, a copy of the policy owner’s application
  for the life settlement contract, the notice required under subdivision (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 life settlement transaction. A form for
  verification of coverage approved by the Commissioner shall be used. (4) The insurer shall respond to a request for verification of coverage submitted on an
  approved form by a life settlement provider or life settlement broker within 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 insurance
  or life settlement fraud. The insurer shall accept a request for verification of coverage
  made on a 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 policy owner. Failure by the insurer to meet its obligations under this
  subsection shall be a violation of sections 3844 and 3848 of this title. (5) Prior to or at the time of execution of the life settlement contract, the life settlement
  provider shall obtain a witnessed document in which the policy owner consents to the
  life settlement contract, represents that the policy owner has a full and complete
  understanding of the life settlement contract and of the benefits of the life insurance
  policy, acknowledges that he or she is entering into the life settlement contract
  freely and voluntarily, has received the disclosures required in section 3841 of this title 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) If a life settlement broker performs any of these activities required of the life
  settlement provider, the provider is deemed to have fulfilled such requirement.