N.J. Admin. Code § 11:4-35.17

Current through Register Vol. 56, No. 23, December 2, 2024

Section 11:4-35.17 - Prohibited practices

(a) A viatical settlement provider, viatical settlement broker or viatical settlement representative shall not provide patient identifying information to any person, unless the insured and viator provide written consent to the release of the information.

(b) A viatical settlement provider, viatical settlement broker or viatical settlement representative shall obtain from a person that is provided with patient identifying information a signed affirmation that the person or entity will not further divulge the information without procuring the express, written consent of the insured for the disclosure. Notwithstanding the foregoing, if a viatical settlement provider, viatical settlement broker or viatical settlement representative is served with a subpoena and, therefore, compelled to produce records containing patient identifying information, it shall notify the viator and the insured in writing at their last known addresses within five business days after receiving notice of the subpoena.

(c) A viatical settlement provider shall not act also as a viatical settlement broker, whether entitled to collect a fee directly or indirectly, in the same viatical settlement.

(d) A viatical settlement broker shall not act as the viatical settlement broker regarding a life insurance policy if the broker is the life insurance producer that produced or receives commissions from the policy being viaticated.

(e) A viatical settlement broker shall not, without the written agreement of the viator obtained prior to performing any services in connection with a viatical settlement, seek or obtain any compensation from the viator.

(f) A viatical settlement provider shall not use a longer life expectancy than is realistic in order to reduce the payout to which the viator is entitled.

(g) No person shall enter into a viatical settlement contract the subject of which is a life insurance policy that the person knows was obtained by means of a false, deceptive, or misleading application for the life insurance policy.

N.J. Admin. Code § 11:4-35.17