Section 626.7 - Disclosure(a) General rule.--With each application for a viatical settlement, a viatical settlement provider or viatical settlement broker shall provide the viator with at least the following disclosures no later than the time the application for the viatical settlement contract is signed by all parties. The disclosures shall be provided in a separate document that is signed by the viator and the viatical settlement provider or viatical settlement broker and shall provide the following information: (1) possible alternatives to viatical settlement contracts, including any accelerated death benefits or policy loans offered under the viator's life insurance policy;(2) some or all of the proceeds of the viatical settlement may be taxable under Federal income tax and State franchise and income taxes, and assistance should be sought from a professional tax advisor;(3) proceeds of the viatical settlement could be subject to the claims of creditors;(4) receipt of the proceeds of a viatical settlement may adversely affect the viator's eligibility for Medicaid or other government benefits or entitlements, and advice should be obtained from the appropriate government agencies;(5) the viator has the right to rescind a viatical settlement contract for 15 calendar days from the receipt of the viatical settlement proceeds by the viator as provided in section 8(g) . If the insured dies during the rescission period, the settlement contract shall be deemed to have been rescinded, subject to repayment of all viatical settlement proceeds and other payments made by the viatical settlement provider on behalf of the viator or insured to the viatical settlement provider;(6) funds will be sent to the viator within three business days after the viatical settlement provider has received the insurer or group administrator's acknowledgment that ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated;(7) entering into a viatical settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy or certificate, to be forfeited by the viator, and that assistance should be sought from a financial adviser;(8) all medical, financial or personal information solicited or obtained by a viatical settlement provider or viatical settlement broker about an insured, including the insured's identity or the identity of family members, a spouse or a significant other may be disclosed as necessary to effect the viatical settlement between the viator and the viatical settlement provider and/or financing entities. If a viator is asked to provide this information, the viator must consent to the disclosure, and failure to consent may affect the viator's ability to viaticate a life insurance policy. The information may be provided to viatical settlement purchasers, financing entities, special purpose entities or related provider trusts; and(9) all information provided by a viator or insured to a viatical settlement provider or viatical settlement broker will be shared with the insurer that issued the life insurance policy that is the subject of the viatical transaction.(b) Viatical settlements brochure.--Prior to the time the application for a viatical settlement contract is signed by all parties, a viatical settlement provider or viatical settlement broker shall provide the viator with a brochure describing the process of viatical settlements. The department shall develop this brochure to educate consumers in the selling of their life insurance policies.(c) Disclosures by viatical settlement provider.--A viatical settlement provider shall provide the viator with at least the following disclosures no later than the time the viatical settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in the viatical settlement contract or in a separate document signed by the viator and the viatical settlement provider or viatical settlement broker and provide the following information: (1) The affiliation, if any, between the viatical settlement provider and the issuer of the insurance policy to be viaticated.(2) The name, address and telephone number of the viatical settlement provider.(3) If an insurance policy to be viaticated has been issued as a joint policy or involves family riders or any coverage of a life other than the insured under the policy to be viaticated, the possible loss of coverage on the other lives under the policy and shall be advised to consult with his or her insurance producer or the insurer issuing the policy for advice on the proposed viatical settlement.(4) The dollar amount of the current death benefit payable to the viatical settlement provider under the policy or certificate and, if known, the availability of any additional guaranteed insurance benefits, the dollar amount of any accidental death and dismemberment benefits under the policy or certificate and the viatical settlement provider's interest in those benefits.(5) The name, business address and telephone number of the independent third party escrow agent and the fact that the viator or owner may inspect or receive copies of the relevant escrow or trust agreements or documents.(d) Disclosure by a viatical settlement broker.--In addition to any other disclosures, a viatical settlement broker shall provide a prospective viator with at least the following disclosures prior to the date the viatical settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in a document signed by the viator and the viatical settlement broker and shall provide the amount and method of calculating the viatical settlement broker's potential compensation. The term "compensation" includes anything of value paid or given to a viatical settlement broker for the placement of a policy.(e) Disclosure of ownership transfer or beneficiary change.--If the viatical settlement provider transfers ownership or changes the beneficiary of the insurance policy, the provider shall communicate the change in ownership or beneficiary to the insured within 20 days after the change.2002, July 4, P.L. 699, No. 107, § 7, effective in 180 days.