Interest retained by owner

If a viatical settlement provider enters a viatical settlement that allows the viator to retain an interest in the policy, the viatical settlement contract shall contain the following provisions: (1) A provision that the viatical settlement provider will effect the transfer of the amount of the death benefit only to the extent or portion of the amount viaticated. Benefits in excess of the amount viaticated shall be paid directly to the viator's beneficiary by the insurance company; (2) a provision that the viatical settlement provider will, upon acknowledgment of the perfection of the transfer, either (A) advise the insured, in writing that the insurance company has confirmed the viator's interest in the policy or (B) send a copy of the instrument sent from the insurance company to the viatical settlement company that acknowledges the viator's interest in the policy; and (3) a provision that apportions the premiums to be paid by the viatical settlement company and the viator. It is permissible for the viatical settlement contract to specify that all premiums shall be paid by the viatical settlement company. The contract may also require that the viator reimburse the viatical settlement provider for the premiums attributable to the retained interest.