Right of Rescission Applicable to Sales of Viatical Settlement Interests

Right of Rescission Applicable to Sales of Viatical Settlement Interests. A. In addition to any other rights provided for under this Chapter or otherwise, a person who buys a viatical settlement investment contract or a security that either represents or is secured by a viatical settlement interest may rescind the purchase by giving the entity designated in the disclosure documents written notice of rescission, by ordinary mail, postage prepaid, postmarked no later than thirty (30) days following the later of the date on which the purchaser paid for the investment, or the date on which the purchaser received the Form VIAD Part II. B. The notice of rescission required under Subsection (A) of this Rule is sufficient if addressed to the entity designated for the notice at the address given in the disclosure statement. The rescission notice is effective on the date it is mailed. The rescission notice may be in any form that expresses the intention of a purchaser to rescind the transaction. C. Notwithstanding the time limit in Subsection (A) of this Rule, if the issuer has not found an acceptably suitable viatical settlement investment contract and closed the transaction within ninety (90) days of the execution of the purchase agreement, on the ninetieth (90th) day following the execution of the purchase agreement, the issuer shall provide the viatical settlement purchaser with a rescission offer using a form approved by the Division, and the viatical settlement investment contract purchaser will have ten (10) business days from its receipt to either accept or reject the rescission offer. The issuer shall keep a record of the rescission offer and its acceptance or rejection for at least three (3) years after providing that offer and shall provide that record to the Division at its request. D. In this Rule, “business day” means a day other than Saturday, Sunday, or a state or federal holiday.