{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-4055.2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-4055.2","heading":"Definitions","body":"As used in the Viatical Settlements Act of 2008:\n\n1. “Advertising” means any written, electronic or printed\n\ncommunication or any communication by means of recorded telephone\n\nmessages or transmitted on radio, television, the Internet or\n\nsimilar communications media, including film strips, motion pictures\n\nand videos, published, disseminated, circulated or placed directly\n\nbefore the public, in this state, for the purpose of creating an\n\ninterest in or inducing a person to sell, assign, devise, bequest or\n\ntransfer the death benefit or ownership of a life insurance policy\n\npursuant to a viatical settlement contract;\n\n2. “Business of viatical settlements” means an activity\n\ninvolved in, but not limited to, the offering, soliciting,\n\nnegotiating, procuring, effectuating, purchasing, investing,\n\nfinancing, monitoring, tracking, underwriting, selling,\n\ntransferring, assigning, pledging, hypothecating or in any other\n\nmanner acquiring an interest in a life insurance policy by means of\n\na viatical settlement contract;\n\n3. “Chronically ill” means:\n\na. being unable to perform at least two activities of\n\ndaily living, including, but not limited to, eating,\n\ntoileting, transferring, bathing, dressing or\n\ncontinence,\n\nb. requiring substantial supervision to protect the\n\nindividual from threats to health and safety due to\n\nsevere cognitive impairment, or\n\nc. having a level of disability similar to that described\n\nin subparagraph a of this paragraph as determined by\n\nthe Secretary of Human Services;\n\n4. “Commissioner” means the Insurance Commissioner of the State\n\nof Oklahoma;\n\n5. “Financing entity” means an underwriter, placement agent,\n\nlender, purchaser of securities, purchaser of a policy or\n\ncertificate from a viatical settlement provider, credit enhancer, or\n\nany entity that has a direct ownership in a policy or certificate\n\nthat is the subject of a viatical settlement contract, but:\n\na. whose principal activity related to the transaction is\n\nproviding funds to effect the viatical settlement or\n\npurchase of one or more viaticated policies, and\n\nb. who has an agreement in writing with one or more\n\nlicensed viatical settlement providers to finance the\n\nacquisition of viatical settlement contracts.\n\nFinancing entity does not include a nonaccredited investor or a\n\nviatical settlement purchaser;\n\n6. “Financing transaction” means a transaction in which a\n\nlicensed provider obtains financing from a financing entity,\n\nincluding, without limitation, any secured or unsecured financing,\n\nany securitization transaction, or any securities offering which\n\neither is registered or exempt from registration under federal and\n\nstate securities law;\n\n7. “Fraudulent viatical settlement act” includes:\n\na. acts or omissions committed by any person who,\n\nknowingly and with intent to defraud, for the purpose\n\nof depriving another of property or for pecuniary\n\ngain, commits, or permits its employees or its agents\n\nto engage in acts including:\n\n(1) presenting, causing to be presented or preparing\n\nwith knowledge or belief that it will be\n\npresented to or by a viatical settlement\n\nprovider, viatical settlement broker, viatical\n\nsettlement purchaser, financing entity, insurer,\n\ninsurance producer or any other person, false\n\nmaterial information, or concealing material\n\ninformation, as part of, in support of or\n\nconcerning a fact material to one or more of the\n\nfollowing:\n\n(a) an application for the issuance of a\n\nviatical settlement contract or insurance\n\npolicy,\n\n(b) the underwriting of a viatical settlement\n\ncontract or insurance policy,\n\n(c) a claim for payment or benefit pursuant to a\n\nviatical settlement contract or insurance\n\npolicy,\n\n(d) premiums paid on an insurance policy,\n\n(e) payments and changes in ownership or\n\nbeneficiary made in accordance with the\n\nterms of a viatical settlement contract or\n\ninsurance policy,\ncontract or insurance\n\npolicy,\n\n(b) the underwriting of a viatical settlement\n\ncontract or insurance policy,\n\n(c) a claim for payment or benefit pursuant to a\n\nviatical settlement contract or insurance\n\npolicy,\n\n(d) premiums paid on an insurance policy,\n\n(e) payments and changes in ownership or\n\nbeneficiary made in accordance with the\n\nterms of a viatical settlement contract or\n\ninsurance policy,\n\n(f) the reinstatement or conversion of an\n\ninsurance policy,\n\n(g) in the solicitation, offer, effectuation or\n\nsale of a viatical settlement contract or\n\ninsurance policy,\n\n(h) the issuance of written evidence of viatical\n\nsettlement contract or insurance, or\n\n(i) a financing transaction,\n\n(2) intentionally failing to disclose to the insurer\n\nwhen requested by the insurer that the\n\nprospective insured has knowingly undergone a\n\nlife expectancy evaluation by any person or\n\nentity other than the insured or its authorized\n\nrepresentatives in connection with the issuance\n\nof the policy,\n\n(3) in the solicitation, application or issuance of a\n\nlife insurance policy, employing any device,\n\nscheme or artifice in violation of Section 3604\n\nof Title 36 of the Oklahoma Statutes, and\n\n(4) employing any plan, financial structure, device,\n\nscheme, or artifice to defraud related to\n\nviaticated policies,\n\nb. in the furtherance of a fraud or to prevent the\n\ndetection of a fraud any person commits or permits its\n\nemployees or its agents to:\n\n(1) remove, conceal, alter, destroy or sequester from\n\nthe Commissioner the assets or records of a\n\nlicensee or other person engaged in the business\n\nof viatical settlements,\n\n(2) misrepresent or conceal the financial condition\n\nof a licensee, financing entity, insurer or other\n\nperson,\n\n(3) transact the business of viatical settlements in\n\nviolation of laws requiring a license,\n\ncertificate of authority or other legal authority\n\nfor the transaction of the business of viatical\n\nsettlements, or\n\n(4) file with the Commissioner or the equivalent\n\nchief insurance regulatory official of another\n\njurisdiction a document containing false\n\ninformation or otherwise conceals information\n\nabout a material fact from the Commissioner,\n\nc. embezzlement, theft, misappropriation or conversion of\n\nmonies, funds, premiums, credits or other property of\n\na viatical settlement provider, insurer, insured,\n\nviator, insurance policyowner or any other person\n\nengaged in the business of viatical settlements or\n\ninsurance,\n\nd. recklessly entering into, negotiating, brokering,\n\notherwise dealing in a viatical settlement contract,\n\nthe subject of which is a life insurance policy that\n\nwas obtained by presenting false information\n\nconcerning any fact material to the policy or by\n\nconcealing, for the purpose of misleading another,\n\ninformation concerning any fact material to the\n\npolicy, where the person or the persons intended to\n\ndefraud the policy’s issuer, the viatical settlement\n\nprovider or the viator. Recklessly means engaging in\n\nthe conduct in conscious and clearly unjustifiable\n\ndisregard of a substantial likelihood of the existence\n\nof the relevant facts or risks, such disregard\n\ninvolving a gross deviation from acceptable standards\n\nof conduct,\n\ne. stranger-originated life insurance,\n\nf. facilitating the change of state of ownership of a\n\npolicy or certificate or the state of residency of a\n\nviator to a state or jurisdiction that does not have a\n\nlaw similar to this act for the express purposes of\n\nevading or avoiding the provisions of the Viatical\n\nSettlements Act of 2008, or\n\ng. attempting to commit, assisting, aiding or abetting in\n\nthe commission of, or conspiracy to commit the acts or\n\nomissions specified in this paragraph;\n\n8. “Life insurance producer” means any person licensed in this\n\nstate as a resident or nonresident insurance producer who has\n\nreceived qualification or authority for life insurance coverage or a\nons of the Viatical\n\nSettlements Act of 2008, or\n\ng. attempting to commit, assisting, aiding or abetting in\n\nthe commission of, or conspiracy to commit the acts or\n\nomissions specified in this paragraph;\n\n8. “Life insurance producer” means any person licensed in this\n\nstate as a resident or nonresident insurance producer who has\n\nreceived qualification or authority for life insurance coverage or a\n\nlife line of coverage pursuant to the Oklahoma Producer Licensing\n\nAct;\n\n9. “Person” means a natural person or a legal entity,\n\nincluding, without limitation, an individual, partnership, limited\n\nliability company, association, trust, or corporation;\n\n10. “Policy” means an individual or group policy, group\n\ncertificate, contract or arrangement of life insurance owned by a\n\nresident of this state, regardless of whether delivered or issued\n\nfor delivery in this state;\n\n11. “Related provider trust” means a titling trust or other\n\ntrust established by a licensed viatical settlement provider or a\n\nfinancing entity for the sole purpose of holding the ownership or\n\nbeneficial interest in purchased policies in connection with a\n\nfinancing transaction. The trust shall have a written agreement\n\nwith the licensed viatical settlement provider under which the\n\nlicensed viatical settlement provider is responsible for ensuring\n\ncompliance with all statutory and regulatory requirements and under\n\nwhich the trust agrees to make all records and files related to\n\nviatical settlement transactions available to the Commissioner as if\n\nthose records and files were maintained directly by the licensed\n\nviatical settlement provider;\n\n12. “Special purpose entity” means a corporation, partnership,\n\ntrust, limited liability company or other similar entity formed\n\nsolely to provide either directly or indirectly access to\n\ninstitutional capital markets:\n\na. for a financing entity or licensed viatical settlement\n\nprovider, or\n\nb. (1) in connection with a transaction in which the\n\nsecurities in the special purposes entity are\n\nacquired by the viator or by “qualified\n\ninstitutional buyers” as defined in Rule 144\n\npromulgated under the Federal Securities Act of\n\n1933, as amended, or\n\n(2) the securities pay a fixed rate of return\n\ncommensurate with established asset-backed\n\ninstitutional capital markets;\n\n13. “Stranger-originated life insurance” means a practice or\n\nplan to initiate a life insurance policy for the benefit of a third-\n\nparty investor who, at the time of policy origination, has no\n\ninsurable interest in the insured. Stranger-originated life\n\ninsurance practices include, but are not limited to, cases in which\n\nlife insurance is purchased with resources or guarantees from or\n\nthrough a person or entity who, at the time of policy inception,\n\ncould not lawfully initiate the policy, and where, at the time of\n\npolicy inception, there is an arrangement or agreement, whether\n\nverbal or written, to directly or indirectly transfer the ownership\n\nof the policy or the policy benefits to a third party. Trusts that\n\nare created to give the appearance of insurable interest and are\n\nused to initiate policies for investors violate Section 3604 of\n\nTitle 36 of the Oklahoma Statutes and the prohibition against\n\nwagering on human life. Stranger-originated life insurance\n\narrangements do not include the practices provided in subparagraph b\n\nof paragraph 15 of this section;\n\n14. “Terminally ill” means having an illness or sickness that\n\ncan reasonably be expected to result in death in twenty-four (24)\n\nmonths or less;\n\n15. “Viatical settlement broker” means a person, including a\n\nlife insurance producer as provided for in Section 3 of Enrolled\n\nSenate Bill No. 1980 of the 2nd Session of the 51st Oklahoma\n\nLegislature, who working exclusively on behalf of a viator and for a\n\nfee, commission or other valuable consideration, offers or attempts\nbly be expected to result in death in twenty-four (24)\n\nmonths or less;\n\n15. “Viatical settlement broker” means a person, including a\n\nlife insurance producer as provided for in Section 3 of Enrolled\n\nSenate Bill No. 1980 of the 2nd Session of the 51st Oklahoma\n\nLegislature, who working exclusively on behalf of a viator and for a\n\nfee, commission or other valuable consideration, offers or attempts\n\nto negotiate viatical settlement contracts between a viator and one\n\nor more viatical settlement providers or one or more viatical\n\nsettlement brokers. Notwithstanding the manner in which the\n\nviatical settlement broker is compensated, a viatical settlement\n\nbroker is deemed to represent only the viator, and not the insurer\n\nor the viatical settlement provider, and owes a fiduciary duty to\n\nthe viator to act according to the viator’s instructions and in the\n\nbest interest of the viator. The term does not include an attorney,\n\ncertified public accountant or a financial planner accredited by a\n\nnationally recognized accreditation agency, who is retained to\n\nrepresent the viator and whose compensation is not paid directly or\n\nindirectly by the viatical settlement provider or purchaser;\n\n16. “Viatical settlement contract” means a written agreement\n\nbetween a viator and a viatical settlement provider or any affiliate\n\nof the viatical settlement provider establishing the terms under\n\nwhich compensation or anything of value is or will be paid, which\n\ncompensation or value is less than the expected death benefits of\n\nthe policy, in return for the viator’s present or future assignment,\n\ntransfer, sale, devise or bequest of the death benefit or ownership\n\nof any portion of the insurance policy or certificate of insurance.\n\nViatical settlement contract also means the transfer for\n\ncompensation or value of ownership or beneficial interest in a trust\n\nor other entity that owns such policy if the trust or other entity\n\nwas formed or availed of for the principal purpose of acquiring one\n\nor more life insurance contracts, which life insurance contracts\n\ninsure the life of a person residing in this state.\n\na. Viatical settlement contract includes a premium\n\nfinance loan made for a life insurance policy by a\n\nlender to viator on, before or less than two (2) years\n\nafter the date of issuance of the policy where:\n\n(1) the viator or the insured receives on the date of\n\nthe premium finance loan a guarantee of a future\n\nviatical settlement value of the policy, or\n\n(2) the viator or the insured agrees on the date of\n\nthe premium finance loan to sell the policy or\n\nany portion of its death benefit on any date\n\nfollowing the issuance of the policy.\n\nb. Viatical settlement contract does not include:\n\n(1) a policy loan or accelerated death benefit made\n\nby the insurer pursuant to the policy’s terms,\n\n(2) loan proceeds that are used solely to pay:\n\n(a) premiums for the policy, and\nance loan to sell the policy or\n\nany portion of its death benefit on any date\n\nfollowing the issuance of the policy.\n\nb. Viatical settlement contract does not include:\n\n(1) a policy loan or accelerated death benefit made\n\nby the insurer pursuant to the policy’s terms,\n\n(2) loan proceeds that are used solely to pay:\n\n(a) premiums for the policy, and\n\n(b) the costs of the loan, including, without\n\nlimitation, interest, arrangement fees,\n\nutilization fees and similar fees, closing\n\ncosts, legal fees and expenses, trustee fees\n\nand expenses, and third-party collateral\n\nprovider fees and expenses, including fees\n\npayable to letter of credit issuers,\n\n(3) a loan made by a bank or other licensed financial\n\ninstitution in which the lender takes an interest\n\nin a life insurance policy solely to secure\n\nrepayment of a loan or, if there is a default on\n\nthe loan and the policy is transferred, the\n\ntransfer of such a policy by the lender, provided\n\nthat neither the default on the loan nor the\n\ntransfer of the policy in connection with the\n\ndefault is pursuant to an agreement or\n\nunderstanding with any other person for the\n\npurpose of evading regulation under this act,\n\n(4) a loan made by a lender that does not violate\n\nSections 4-101 through 4-304 of Title 14A of the\n\nOklahoma Statutes, provided that the premium\n\nfinance loan is not described in this\n\nsubparagraph,\n\n(5) an agreement where all the parties:\n\n(a) are closely related to the insured by blood\n\nor law, or\n\n(b) have a lawful substantial economic interest\n\nin the continued life, health and bodily\n\nsafety of the person insured, or are trusts\n\nestablished primarily for the benefit of\n\nsuch parties,\n\n(6) any designation, consent or agreement by an\n\ninsured who is an employee of an employer in\n\nconnection with the purchase by the employer, or\n\ntrust established by the employer, of life\n\ninsurance on the life of the employee,\n\n(7) a bona fide business succession planning\n\narrangement:\n\n(a) between one or more shareholders in a\n\ncorporation or between a corporation and one\n\nor more of its shareholders or one or more\n\ntrusts established by its shareholders,\n\n(b) between one or more partners in a\n\npartnership or between a partnership and one\n\nor more of its partners or one or more\n\ntrusts established by its partners, or\n\n(c) between one or more members in a limited\n\nliability company or between a limited\n\nliability company and one or more of its\n\nmembers or one or more trusts established by\n\nits members,\n\n(8) an agreement entered into by a service recipient,\n\nor a trust established by the service recipient,\n\nand a service provider, or a trust established by\n\nthe service provider, who performs significant\n\nservices for the service recipient’s trade or\n\nbusiness, or\nlity company or between a limited\n\nliability company and one or more of its\n\nmembers or one or more trusts established by\n\nits members,\n\n(8) an agreement entered into by a service recipient,\n\nor a trust established by the service recipient,\n\nand a service provider, or a trust established by\n\nthe service provider, who performs significant\n\nservices for the service recipient’s trade or\n\nbusiness, or\n\n(9) any other contract, transaction or arrangement\n\nexempted from the definition of viatical\n\nsettlement contract by the Commissioner based on\n\na determination that the contract, transaction or\n\narrangement is not of the type intended to be\n\nregulated by the Viatical Settlements Act of\n\n2008;\n\n17. “Viatical settlement provider” means a person, other than a\n\nviator, that enters into or effectuates a viatical settlement\n\ncontract with a viator resident in this state. Viatical settlement\n\nprovider does not include:\n\na. a bank, savings bank, savings and loan association,\n\ncredit union or other licensed lending institution\n\nthat takes an assignment of a life insurance policy\n\nsolely as collateral for a loan,\n\nb. a premium finance company making premium finance loans\n\nand exempted by the Commissioner from the licensing\n\nrequirement under the premium finance laws that takes\n\nan assignment of a life insurance policy solely as\n\ncollateral for a loan,\n\nc. the issuer of the life insurance policy,\n\nd. an authorized or eligible insurer that provides stop\n\nloss coverage or financial guaranty insurance to a\n\nviatical settlement provider, purchaser, financing\n\nentity, special purpose entity or related provider\n\ntrust,\n\ne. a natural person who enters into or effectuates no\n\nmore than one agreement in a calendar year for the\n\ntransfer of life insurance policies for any value less\n\nthan the expected death benefit,\n\nf. a financing entity,\n\ng. a special purpose entity,\n\nh. a related provider trust,\n\ni. a viatical settlement purchaser, or\n\nj. any other person that the Commissioner determines is\n\nnot the type of person intended to be covered by the\n\ndefinition of viatical settlement provider;\n\n18. “Viatical settlement purchaser” means a person who provides\n\na sum of money as consideration for a life insurance policy or an\n\ninterest in the death benefits of a life insurance policy, or a\n\nperson who owns or acquires or is entitled to a beneficial interest\n\nin a trust that owns a viatical settlement contract or is the\n\nbeneficiary of a life insurance policy that has been or will be the\n\nsubject of a viatical settlement contract, for the purpose of\n\nderiving an economic benefit. Viatical settlement purchaser does\n\nnot include:\n\na. a licensee under the Viatical Settlements Act of 2008,\n\nb. an accredited investor or qualified institutional\n\nbuyer as defined, respectively, in Rule 501(a) or Rule\n\n144A promulgated under the Federal Securities Act of\n\n1933, as amended,\n\nc. a financing entity,\n\nd. a special purpose entity, or\n\ne. a related provider trust;\n\n19. “Viaticated policy” means a life insurance policy or\n\ncertificate that has been acquired by a viatical settlement provider\n\npursuant to a viatical settlement contract; and\n\n20. “Viator” means the owner of a life insurance policy or a\n\ncertificate holder under a group policy who resides in this state\n\nand enters or seeks to enter into a viatical settlement contract.\n\nFor the purposes of the Viatical Settlements Act of 2008, a viator\n\nshall not be limited to an owner of a life insurance policy or a\n\ncertificate holder under a group policy insuring the life of an\n\nindividual with a terminal or chronic illness or condition except\n\nwhere specifically addressed. If there is more than one viator on a\n\nsingle policy and the viators are residents of different states, the\n\ntransaction shall be governed by the law of the state in which the\n\nviator having the largest percentage ownership resides or, if the\nificate holder under a group policy insuring the life of an\n\nindividual with a terminal or chronic illness or condition except\n\nwhere specifically addressed. If there is more than one viator on a\n\nsingle policy and the viators are residents of different states, the\n\ntransaction shall be governed by the law of the state in which the\n\nviator having the largest percentage ownership resides or, if the\n\nviators hold equal ownership, the state of residence of one viator\n\nagreed upon in writing by all the viators. Viator does not include:\n\na. a licensee under the Viatical Settlements Act of 2008,\n\nincluding a life insurance producer acting as a\n\nviatical settlement broker pursuant to the Viatical\n\nSettlements Act of 2008,\n\nb. qualified institutional buyer as defined,\n\nrespectively, in Rule 144A promulgated under the\n\nFederal Securities Act of 1933, as amended,\n\nc. a financing entity,\n\nd. a special purpose entity, or\n\ne. a related provider trust.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"004079e452b4dd888d3eadc2a54beaee2abb8fcd2bd64c6971a74cb4650a7691","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-4055.17","next":"us-ok/okla.-stat.-tit.-36-36-4055.3"},"notice":"GroundRules: Original legal text. Not legal advice."}