N.J. Admin. Code § 11:4-35.2
The following words and terms, as used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
"Act" means an Act concerning life insurance viatical settlements approved September 22, 2005, N.J.S. A. 17B:30B-1 et seq.
"Commissioner," unless otherwise stated, means the Commissioner of the Department of Banking and Insurance.
"Department" means the Department of Banking and Insurance.
"Financing entity" means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a viatical settlement provider, credit enhancer, or any person who may be a party to a viatical settlement contract and who has a direct ownership in a policy or certificate that is the subject of a viatical settlement contract but whose sole activity related to the transaction is providing funds to effect the viatical settlement and who has an agreement in writing with a licensed viatical settlement provider to act as a participant in a financing transaction.
"Financing transaction" means a transaction in which a licensed viatical settlement provider or a financing entity obtains financing for viatical settlement contracts, viaticated policies or interests therein including, without limitation, any secured or unsecured financing, any securitization transaction or any securities offering either registered or exempt form registration under Federal and State securities law, or any direct purchase of interests in a certificate, if the financing transaction complies with Federal and State securities law.
"Insured" means the person covered under the policy being considered for viatication.
"Mean life expectancy" means the mean number of months the individual insured under the life insurance policy to be viaticated can be expected to live as determined by the viatical settlement provider, considering medical records and appropriate experiential data.
"Net death benefit" means the amount of the life insurance policy or certificate to be viaticated less any outstanding debts or liens.
"Patient identifying information" means an insured's address, telephone number, facsimile number, electronic mail address, photograph or likeness, employer, employment status, social security number, or any other information that is likely to lead to the identification of the insured.
"Person" means any individual, corporation, organization, firm, association, partnership or other legal entity.
"Resident (of New Jersey)" means a person who either resides in New Jersey or maintains an office in New Jersey where business is transacted.
"Terminally ill" means having an illness or sickness that can reasonably be expected to result in death in 24 months or less.
"Viatical settlement broker" means a person who on behalf of a viator and for a fee, commission or other valuable consideration, offers or attempts to negotiate viatical settlement contracts between a viator and one or more viatical settlement providers. Irrespective of the manner in which the viatical settlement broker is compensated, a viatical settlement broker is deemed to represent only the viator and owes a fiduciary duty to the viator to act according to the viator's instructions and in the best interest of the viator. The term does not include an attorney, accountant or financial planner retained to represent the viator whose compensation is paid directly by or at the direction of the viator.
"Viatical settlement contract" means a written agreement entered into between a viatical settlement provider and a viator. The agreement shall establish the terms under which the viatical settlement provider will pay compensation or anything of value, which compensation or value is less than the expected death benefit of the insurance policy or certificate, in return for the viator's assignment, transfer, sale, devise or bequest of the death benefit or ownership of all or a portion of the insurance policy or certificate of insurance. A viatical settlement contract also includes a contract for a loan or other financial transaction secured primarily by an individual or group life insurance policy, other than a loan by a life insurer pursuant to the terms of the life insurance contract, or a loan secured by the cash value of a policy.
"Viatical settlement provider" means a person, other than a viator, who enters into a viatical settlement contract. Viatical settlement provider also means a person who obtains financing from a financing entity for the purchase, acquisition, transfer or other assignment of one or more viatical settlement contracts, viaticated policies or interests therein, or otherwise sells, assigns, transfers, pledges, hypothecates or otherwise disposes of one or more viatical settlement contracts, viaticated policies or interests therein. Viatical settlement provider does not include:
1. A bank, savings bank, savings and loan association, credit union or other licensed lending institution that takes an assignment of a life insurance policy as collateral for a loan;
2. The issuer of a life insurance policy providing accelerated benefits pursuant to N.J.A.C. 11:4-30 and pursuant to the policy; or
3. A natural person who enters into no more than one agreement in a calendar year for the transfer of life insurance policies for any value less than the expected death benefit.
"Viatical settlement representative" means a person who is an authorized agent of a licensed viatical settlement provider or viatical settlement broker, as applicable, who acts or aids in any manner in the solicitation of a viatical settlement. Viatical settlement representative shall not include:
1. An attorney, an accountant, a financial planner or any person exercising a power of attorney granted by a viator; or
2. Any person who is retained to represent a viator and whose compensation is paid by or at the direction of the viator, regardless of whether the viatical settlement is consummated.
A viatical settlement representative shall represent only the viatical settlement provider or viatical settlement broker.
"Viaticated policy" means a life insurance policy or certificate that has been acquired by a viatical settlement provider pursuant to a viatical settlement contract.
"Viator" means the owner of a life insurance policy or a certificate holder under a group policy insuring the life of an individual, who has a catastrophic, life-threatening or chronic illness or condition and who enters or seeks to enter into a viatical settlement contract.
N.J. Admin. Code § 11:4-35.2