{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-4055.9","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-4055.9","heading":"Procedures for entering into contracts - Rescission -","body":"Escrow - Minimum discounts - Contract to determine health status.\n\nA. 1. A viatical settlement provider entering into a viatical\n\nsettlement contract shall first obtain:\n\na. if the viator is the insured, a written statement from\n\na licensed attending physician that the viator is of\n\nsound mind and under no constraint or undue influence\n\nto enter into a viatical settlement contract, and\n\nb. a document in which the insured consents to the\n\nrelease of his or her medical records to a licensed\n\nviatical settlement provider, viatical settlement\n\nbroker and the insurance company that issued the life\n\ninsurance policy covering the life of the insured.\n\n2. Within twenty (20) days after a viator executes documents\n\nnecessary to transfer any rights under an insurance policy or within\n\ntwenty (20) days of entering any agreement, option, promise or any\n\nother form of understanding, expressed or implied, to viaticate the\n\npolicy, the viatical settlement provider shall give written notice\n\nto the insurer that issued that insurance policy that the policy has\n\nor will become a viaticated policy. The notice shall be accompanied\n\nby the documents required by paragraph 3 of this subsection.\n\n3. Within twenty (20) days after a viator executes documents\n\nnecessary to transfer any rights under an insurance policy or within\n\ntwenty (20) days of entering any agreement, option, promise or any\n\nother form of understanding, expressed or implied, to viaticate the\n\npolicy, the viatical provider shall deliver a copy of the medical\n\nrelease required under subparagraph b of paragraph 1 of this\n\nsubsection, a copy of the viator's application for the viatical\n\nsettlement contract, the notice required under paragraph 2 of this\n\nsubsection and a request for verification of coverage to the insurer\n\nthat issued the life policy that is the subject of the viatical\n\ntransaction. The National Association of Insurance Commissioner's\n\n(NAIC's) form for verification of coverage shall be used unless\n\nanother form is developed and approved by the Insurance\n\nCommissioner.\n\n4. The insurer shall respond to a request for verification of\n\ncoverage submitted on an approved form by a viatical settlement\n\nprovider or viatical settlement broker within thirty (30) calendar\n\ndays of the date the request is received and shall indicate whether,\n\nbased on the medical evidence and documents provided, the insurer\n\nintends to pursue an investigation at this time regarding the\n\nvalidity of the insurance contract or possible fraud. The insurer\n\nshall accept a request for verification of coverage made on an NAIC\n\nform, any form agreed upon by the insurer and the requestor, or any\n\nother form approved by the Commissioner. The insurer shall accept\n\nan original or facsimile or electronic copy of such request and any\n\naccompanying authorization signed by the viator. Failure by the\n\ninsurer to meet its obligations under this subsection shall be a\n\nviolation of subsection C of Section 10 and Section 15 of Enrolled\n\nSenate Bill No. 1980 of the 2nd Session of the 51st Oklahoma\n\nLegislature.\n\n5. Prior to or at the time of execution of the viatical\n\nsettlement contract, the viatical settlement provider shall obtain a\n\nwitnessed document in which the viator consents to the viatical\n\nsettlement contract, represents that the viator has a full and\n\ncomplete understanding of the viatical settlement contract, that he\n\nor she has a full and complete understanding of the benefits of the\n\nlife insurance policy, acknowledges that he or she is entering into\n\nthe viatical settlement contract freely and voluntarily and, for\n\npersons with a terminal or chronic illness or condition,\n\nacknowledges that the insured has a terminal or chronic illness and\n\nthat the terminal or chronic illness or condition was diagnosed\n\nafter the life insurance policy was issued.\n\n6. The insurer shall not unreasonably delay effecting change of\nthat he or she is entering into\n\nthe viatical settlement contract freely and voluntarily and, for\n\npersons with a terminal or chronic illness or condition,\n\nacknowledges that the insured has a terminal or chronic illness and\n\nthat the terminal or chronic illness or condition was diagnosed\n\nafter the life insurance policy was issued.\n\n6. The insurer shall not unreasonably delay effecting change of\n\nownership or beneficiary with any life settlement contract entered\n\ninto in this state or with a resident of this state.\n\n7. If a viatical settlement broker performs any of these\n\nactivities required of the viatical settlement provider, the\n\nprovider is deemed to have fulfilled the requirements of this\n\nsection.\n\nB. All medical information solicited or obtained by any\n\nlicensee shall be subject to the applicable provisions of state law\n\nrelating to confidentiality of medical information.\n\nC. All viatical settlement contracts entered into in this state\n\nshall provide the viator with an absolute right to rescind the\n\ncontract before the earlier of thirty (30) calendar days after the\n\ndate upon which the viatical settlement contract is executed by all\n\nparties or fifteen (15) calendar days after the viatical settlement\n\nproceeds have been sent to the viator. Rescission by the viator may\n\nbe conditioned upon the viator both giving notice and repaying to\n\nthe viatical settlement provider within the rescission period all\n\nproceeds of the settlement and any premiums, loans and loan interest\n\npaid by or on behalf of the viatical settlement provider in\n\nconnection with or as a consequence of the viatical settlement. If\n\nthe insured dies during the rescission period, the viatical\n\nsettlement contract shall be deemed to have been rescinded, subject\n\nto repayment to the viatical settlement provider or purchaser of all\n\nviatical settlement proceeds, and any premiums, loans and loan\n\ninterest that have been paid by the viatical settlement provider or\n\npurchaser, which shall be paid within sixty (60) calendar days of\n\nthe death of the insured. In the event of any rescission, if the\n\nviatical settlement provider has paid commissions or other\n\ncompensation to a viatical settlement broker in connection with the\n\nrescinded transaction, the viatical settlement broker shall refund\n\nall such commissions and compensation to the viatical settlement\n\nprovider within five (5) business days following receipt of written\n\ndemand from the viatical settlement provider, which demand shall be\n\naccompanied by either the viator's notice of rescission if rescinded\n\nat the election of the viator, or notice of the death of the insured\n\nif rescinded by reason of the death of the insured within the\n\napplicable rescission period.\n\nD. The viatical settlement provider shall instruct the viator\n\nto send the executed documents required to effect the change in\n\nownership, assignment or change in beneficiary directly to the\n\nindependent escrow agent. Within three (3) business days after the\n\ndate the escrow agent receives the document or from the date the\n\nviatical settlement provider receives the documents, if the viator\n\nerroneously provides the documents directly to the provider, the\n\nprovider shall pay or transfer the proceeds of the viatical\n\nsettlement into an escrow or trust account maintained in a state- or\n\nfederally-chartered financial institution whose deposits are insured\n\nby the Federal Deposit Insurance Corporation (FDIC). Upon payment\n\nof the settlement proceeds into the escrow account, the escrow agent\n\nshall deliver the original change in ownership, assignment or change\n\nin beneficiary forms to the viatical settlement provider or related\n\nprovider trust or other designated representative of the viatical\n\nsettlement provider. Upon the escrow agent's receipt of the\n\nacknowledgment of the properly completed transfer of ownership,\n\nassignment or designation of beneficiary from the insurance company,\nshall deliver the original change in ownership, assignment or change\n\nin beneficiary forms to the viatical settlement provider or related\n\nprovider trust or other designated representative of the viatical\n\nsettlement provider. Upon the escrow agent's receipt of the\n\nacknowledgment of the properly completed transfer of ownership,\n\nassignment or designation of beneficiary from the insurance company,\n\nthe escrow agent shall pay the settlement proceeds to the viator.\n\nE. Failure to tender consideration to the viator for the\n\nviatical settlement contract within the time set forth in the\n\ndisclosure pursuant to paragraph 7 of subsection A of Section 8 of\n\nEnrolled Senate Bill No. 1980 of the 2nd Session of the 51st\n\nOklahoma Legislature renders the viatical settlement contract\n\nvoidable by the viator for lack of consideration until the time\n\nconsideration is tendered to and accepted by the viator. Funds\n\nshall be deemed sent by a viatical settlement provider to a viator\n\nas of the date that the escrow agent either releases funds for wire\n\ntransfer to the viator, places a check for delivery to the viator\n\nvia United States Postal Service or other nationally recognized\n\ndelivery service or make an electronic payment to the viator.\n\nF. In order to assure that a viator, at the time of the\n\nviatical settlement has a life expectancy of less than two (2)\n\nyears, receives reasonable return for viaticating an insurance\n\npolicy, the following shall be minimum discounts:\n\nMinimum Percentage of Face\n\nInsured's Life Value Less Outstanding Loans\n\nExpectancy Received By Viator\n\nLess than six (6) months 80%\n\nAt least six (6) but less than\n\ntwelve (12) months 70%\n\nAt least twelve (12) but less\n\nthan eighteen (18) months 65%\n\nAt least eighteen (18) months but\n\nless than twenty-four (24) months 60%\n\nG. Contacts with the insured for the purpose of determining the\n\nhealth status of the insured by the viatical settlement provider or\n\nviatical settlement broker after the viatical settlement has\n\noccurred shall only be made by a viatical settlement provider or\n\nbroker licensed in this state or its authorized representatives and\n\nshall be limited to once every three (3) months for insureds with a\n\nlife expectancy of more than one (1) year, and to no more than once\n\nper month for insureds with a life expectancy of one (1) year or\n\nless. The provider or broker shall explain the procedure for these\n\ncontacts at the time the viatical settlement contract is entered\n\ninto. The limitations set forth in this subsection shall not apply\n\nto any contacts with an insured for reasons other than determining\n\nthe insured's health status. Viatical settlement providers and\n\nviatical settlement brokers shall be responsible for the actions of\n\ntheir authorized representatives.","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":"9469b0f675ef83ce8df2504bafaa7dcea15160c524f19ba7d3a3d240c6b99d0a","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-4055.8","next":"us-ok/okla.-stat.-tit.-36-36-406"},"notice":"GroundRules: Original legal text. Not legal advice."}