N.J. Admin. Code § 11:4-35.14

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

Section 11:4-35.14 - Viatical settlement provisions

(a) If a viatical settlement provider enters into a viatical settlement that allows the viator to retain an interest in the policy, the viatical settlement contract shall contain the following provisions:

1. A provision that the viatical settlement provider will effect the transfer of the amount of the death benefit only to the extent or portion of the amount viaticated. Benefits in excess of the amount viaticated shall be paid directly to the viator's beneficiary by the insurer;

2. A provision that the viatical settlement provider will, upon acknowledgment of the perfection of the transfer, send to the viator a copy of the instrument sent from the insurer to the viatical settlement provider that acknowledges the viator's interest in the policy; and

3. A provision that apportions the premiums to be paid by the viatical settlement provider and the viator. It is permissible for the viatical settlement contract to specify that all premiums shall be paid by the viatical settlement provider. The contract may also require that the viator reimburse the viatical settlement provider for the premiums attributable to the retained interest.

N.J. Admin. Code § 11:4-35.14