N.Y. Comp. Codes R. & Regs. tit. 11 § 380.9

Current through Register Vol. 46, No. 53, December 31, 2024

Section 380.9 - General rules

(a) A viator may not assign, transfer, sell, devise or bequeath to a viatical settlement company:

(1) a death benefit for any insured other than the viator; or

(2) any accidental death benefit.

(b) A viator may not assign death benefits under a joint life insurance or a joint survivorship policy unless the other insured has predeceased the viator.

(c) Every insurer which is licensed to do the business of life insurance in this State shall provide to a viatical settlement company the specified information requested on the status of a policyowner's policy or certificateholder's certificate, within 10 business days of the receipt of the following documents in the home office of the insurer:

(1) an authorization signed by a policyowner or the certificateholder to release specified information regarding the policy or certificate to a named viatical settlement company or named viatical settlement broker; and

(2) a request in writing from the named viatical settlement company or named viatical settlement broker for the specified policy information.

(d) An issuer of a group life insurance policy shall, within 10 business days of the receipt in the home office of the insurer of a written request from a certificateholder for a conversion to an individual life insurance policy, deliver the conversion policy to the policyholder where:

(1) the request for conversion is in compliance with the conversion provision in the policy; and

(2) the certificateholder has indicated that the conversion is being requested for the purpose of entering into a viatical settlement agreement.

(e) Nothing in subdivision (d) of this section is intended to prohibit a person insured under a group life insurance policy from assigning his or her rights or benefits under such policy to a viatical settlement company.

(f) Where a change of ownership or irrevocable assignment is used to effectuate the transfer or assignment of the viator's rights or benefits under a policy or certificate to a viatical settlement company, such document shall contain a 15- day grace period coincidental with the viator's right to rescind.

(g) Immediately upon the transfer of rights under the policy or certificate, the insurer shall notify the trustee or escrow agent, the viatical settlement company and the viator that the transfer has been effectuated.

(h) Immediately upon the payment of the settlement proceeds to the viator or rescission of the viatical settlement agreement by the viator, the viatical settlement company shall notify the insurer of the payment or rescission.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 380.9