Or. Admin. Code § 836-014-0280

Current through Register Vol. 63, No. 12, December 1, 2024

Section 836-014-0280 - Disclosure Required

(1) With an application for a life settlement, a life settlement provider or life settlement broker shall disclose the information specified in section 11, chapter 711, 2009 Oregon Laws (Enrolled Senate Bill 973) in a disclosure statement in a form approved by the director. The statement must be in not less than 12 point type. An example of the form of the disclosure statement will be displayed on the Division of Financial Regulation website and the director may update names, telephone numbers and similar information from time to time as necessary. A life settlement broker shall disclose to the insured in writing any relationship required to be disclosed to an owner under section 15, chapter 711, Oregon Laws 2009 prior to effectuating a life settlement contract. The form of the disclosure statement shall be approved by the director.

(2) For each life settlement contract entered into by a life settlement provider, the provider must keep a copy of the disclosure statement in the provider's file on the contract, along with an affidavit signed by the provider showing the date the statement was delivered to and signed by the policyholder or insured and the life settlement provider or life settlement broker and attesting to the provider's belief that the policyholder or insured had an opportunity to read and understand the statement. The provider must also send a copy of the statement and the signed affidavit to the life settlement broker.

(3) The disclosures required under section (1) of this rule must be provided in a separate document that is signed by the owner or insured and the life settlement provider or life settlement broker, and must provide the following information:

(a) All information required by section 11(1), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973);

(b) The brochure required by section 11(2), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973); and

(c) An explanation of the ability of the life settlement provider and the life settlement broker to contact the insured for the purpose of determining the health status of the insured after the life settlement occurs, and the frequency at which those contacts may occur.

(4) No later than the date the life settlement contract is signed by all parties, a life settlement provider shall provide the owner and insured with at least the disclosures required under section 11(3), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973). The disclosures shall be conspicuously displayed in the life settlement contract or in a separate document signed by the owner or insured.

(5) If the life settlement provider transfers ownership or changes the beneficiary of the insurance policy, the provider shall communicate in writing the change in ownership or beneficiary to the insured within 20 days after the change. Any subsequent life settlement purchaser that transfers ownership or changes the beneficiary shall notify the person identified by the life settlement provider under section 11(7)(h), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973) in order that the life settlement provider may again notify the insured of the subsequent change in ownership or beneficiary.

(6) Prior to the date the life settlement purchase agreement is signed by all parties, a life settlement provider or its life settlement investment agent shall provide the life settlement purchaser with at least the following disclosures. The disclosures must be conspicuously displayed in any life purchase contract or in a separate document signed by the life settlement purchaser and life settlement provider or life settlement investment agent, and must include the following:

(a) The disclosures required by section 11(5), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973); and

(b) A brochure describing the process of investment in life settlements in a form approved by the director. The director shall review the form to determine whether the form is sufficiently similar to the brochure as illustrated on the Division of Financial Regulation website.

(7) No later than at the time of the assignment, transfer or sale of all or a portion of an insurance policy, a life settlement provider or its life settlement investment agent shall provide the life settlement purchaser with at least the disclosures required by section 11(7), chapter 711, Oregon Laws 2009 (Enrolled Senate Bill 973).

(8) A life settlement broker shall retain for five years a copy of a disclosure statement given to a person under section (3) of this rule that is signed by the person, in the broker's files.

(9) A life settlement broker to whom a copy of a disclosure statement and signed affidavit is sent by the life settlement provider must retain for five years the copies in the broker's files on the contract.

(10) A life settlement provider shall not enter a life settlement contract affecting a life insurance policy issued by an insurer with which the life settlement provider is affiliated or of which the life settlement provider is a subsidiary, unless the relationship between the insurer and the life settlement provider is fully disclosed, in writing, to the policyholder or certificate holder.

Or. Admin. Code § 836-014-0280

ID 3-1996, f. & cert. ef. 2-26-96; ID 14-1997, f. & cert. ef. 10-17-97; ID 15-2006, f. & cert. ef. 7-27-06; ID 1-2010, f. & cert. ef. 1-5-10; ID 13-2024, minor correction filed 07/23/2024, effective 7/23/2024

Statutory/Other Authority: ORS 744.358

Statutes/Other Implemented: Or Laws 2009, ch 711, secs 10, 11, 15