General Rules

General Rules A. With respect to policies containing a provision for double or additional indemnity for accidental death, the additional payment shall remain payable to the beneficiary last named by the viator prior to entering into the viatical settlement contract, or to such other beneficiary, other than the viatical settlement provider, as the viator may thereafter designate, or in the absence of a beneficiary, to the estate of the viator. B. Pursuant to Miss. Code Ann. § 83-7-217(4) the viatical settlement provider shall pay the proceeds of the viatical settlement to an escrow or trust account in a state or federally chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC) within two business days of receiving the documents that effect the transfer of the insurance policy. C. Payment of the proceeds to the viator pursuant to a viatical settlement shall be made in a lump sum except where the viatical settlement provider has purchased an annuity or similar financial instrument issued by a licensed insurance companyor bank, or an affiliate of either. Retention of a portion of the proceeds by the viatical settlement provider or escrow agent is not permissible. D. A viatical settlement provider, viatical settlement broker or viatical settlement representative shall not discriminate in the making or solicitation of viatical settlements on the basis of race, age, sex, national origin, creed, religion, occupation, marital or family status or sexual orientation, or discriminate between viators with dependents and without. E. A viatical settlement provider, viatical settlement broker or viatical settlementrepresentative shall not pay or offer to pay any finder’s fee, commission or other compensation to any insured’s physician, or to an attorney, accountant or other person providing medical, legal or financial planning services to the viator, or to any other person acting as an agent of the viator with respect to the viaticalsettlement. F. A viatical settlement provider shall not knowingly solicit investors who have treated or have been asked to treat the illness of the insured whose coverage would be the subject of investment. G. Advertising standards: Advertising related to the viatical settlement shall be truthful and notmisleading by fact or implication. The form and content of an advertisement of a viatical settlement contract, product, or service shall be sufficiently complete and clear so as to avoid deception. It shall not have the capacity or tendency to mislead or deceive. Whether an advertisement has the capacity or tendency to mislead or deceive shall be determined by the Commissioner from the overall impression that the advertisement may reasonably be expected to create upon a person of average education or intelligence within the segment of the public to which it is directed. 1. If the advertiser emphasizes the speed with which the viatication will occur, the advertising must disclose the average time frame from completed application to the date of offer and from acceptance of the offer to receipt of the funds by the viator. 2. If the advertising emphasizes the dollar amounts available to viators, the advertising shall disclose the average purchase price as a percent of face value obtained by viators contracting with the advertiser during the past six (6) months. 3. An advertisement may not represent that a viatical settlement purchase agreement is guaranteed by any insurance guaranty fund. 4. An advertisement shall not make unfair or incomplete comparisons of insurance policies, benefits, dividends or rates. An advertisement shall not disparage insurers, insurance producers, policies, services or methods of marketing. 5. An advertisement shall not use a trade name, group designation, name of the parent company of the viatical settlement provider, name of a particular division of the viatical settlement provider, service mark, slogan, symbol, or other device or reference without disclosing the name of the viatical settlement provider, if the advertisement would have the capacity or tendency to mislead or deceive as to the true identity of the viatical settlement provider, or create the impression that a company other than the viatical settlement provider would have any responsibility for the financial obligation under a viatical settlement contract or viatical settlement purchase agreement. 6. A provider may not use any terminology, logo, or words so similar to the name of a governmental agency or governmental program as to have the tendency to confuse, deceive, or mislead a prospective viator. Further, a provider shall not use an advertisement that would create the impression that a division or agency of the state or federal government endorses, approves, or favors the provider, the financial condition or business practices of the provider, agents for the provider, or the merits of any viatical settlement contract. 7. Each viatical settlement provider shall file with the Commissioner with its annual statement a certificate of compliance executed by an authorized officer of the viatical settlement provider stating that to the best of his or her knowledge, information and belief, the advertisements that were disseminated or seen or heard in this state by or on behalf of the viatical settlement provider during the preceding statement year complied or were made to comply in all respects with the provisions of this regulation and Miss. Code Ann.§ 83-7-215(3). H. If a viatical settlement provider enters into 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 affect 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 hasconfirmed 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 viaticalsettlement contract to specify that all premiums shall be paid by theviatical settlement company. The contract may also require that the viator reimburse the viatical settlement provider for the premiums attributable to the retained interest. I. Viatical settlement contracts and purchase agreement forms and applications for viatical settlements, regardless of the form of transmission, shall contain the following statement or a substantially similar statement: “Any person who knowingly presents false information in an application for insurance or viatical settlement contract or viatical settlement purchase agreement may be guilty of a crime and prosecuted under state law.”