N.J. Admin. Code § 11:4-35.12

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:4-35.12 - Payment of the proceeds

(a) With respect to policies containing a provision for double or additional indemnity for accidental death, the additional payment shall remain payable to the beneficiary last named by the viator prior to entering into the viatical settlement contract, or to such other beneficiary, other than the viatical settlement provider, as the viator may thereafter designate, or in the absence of a beneficiary, to the estate of the viator.

(b) Payment of the proceeds of a viatical settlement pursuant to N.J.S.A. 17B:30B-9dshall be by means of wire transfer to the account of the viator or by certified check or cashier's check.

(c) Payment of the proceeds to the viator pursuant to a viatical settlement shall be made in a lump sum except where single premium fixed annuity has been purchased from an insurance company for the benefit of the viator. The viatical settlement provider cannot be the owner of the annuity. The terms of the payment agreement, including the ownership of the annuity, the insurance company insuring the annuity and the amount of and form of payments under the annuity, shall be reasonable. The viator shall always be offered the option of a lump sum payment. Retention of a portion of the proceeds by the viatical settlement provider or escrow agent is not permissible.

N.J. Admin. Code § 11:4-35.12

Amended by 51 N.J.R. 618(a), effective 5/6/2019