Vermont § 3845 - Prohibited practices and conflicts of interest

§ 3845. Prohibited practices and conflicts of interest

• (a) With respect to any life settlement contract or insurance policy, no life settlement
  broker shall solicit an offer from, effectuate a life settlement with, or make a sale
  to any life settlement provider, financing entity, or related provider trust that
  is controlling, controlled by, or under common control with such life settlement broker. (b) No broker shall have a financial relationship or affiliation with a life settlement
  provider unless the broker fully discloses such relationship or affiliation. A broker
  shall not participate in or form a financial arrangement or affiliation with a life
  settlement provider if such arrangement or affiliation conflicts with the broker’s
  fiduciary duty to the policy owner. (c) With respect to any life settlement contract or insurance policy, no life settlement
  provider shall knowingly enter into a life settlement contract with a policy owner
  if, in connection with such life settlement contract, anything of value will be paid
  to a life settlement broker that is controlling, controlled by, or under common control
  with such life settlement provider, the life settlement purchaser, life settlement
  investment agent, a financing entity, or a related provider trust that is involved
  in such life settlement contract. (d) A violation of subsection (a), (b), or (c) of this section shall be deemed a fraudulent
  life settlement act. (e) No life settlement provider shall enter into a life settlement contract unless the
  life settlement promotional, advertising, and marketing materials, as may be prescribed
  by regulation, have been filed with the Commissioner. In no event shall any marketing
  materials expressly reference that the insurance is “free” for any period of time.
  The inclusion of any reference in the marketing materials that would cause a policy
  owner to reasonably believe that the insurance is free for any period of time shall
  be considered a violation of this subchapter. (f) No life insurance producer, insurance company, life settlement broker, or life settlement
  provider 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. (Added 2009, No. 53, § 1, eff. Jan. 1, 2010.)