40-5010. Same; two year prohibition on entering into viatical settlement; exceptions.
40-5010
40-5010. Same; two year prohibition on entering intoviatical settlement; exceptions.No person at anytime prior to, or at the time of, the application for orissuance of a policy, orduring a two-year period commencing with the date of issuance of the policy,shall enter into aviatical settlement [contract] regardless of the date the compensation isto be providedand regardless of thedate the assignment, transfer, sale, devise, bequest or surrender of the policyis to occur. Thisprohibition shall not apply if the viator certifies to the viaticial settlementprovider that:
(a) The policy was issued upon the viator's exercise of conversion rightsarising out of a group or individual policy, provided the total of the timecovered under the conversion policy plus the time covered under the priorpolicy is at least 24 months. The time covered under a grouppolicy shall becalculated without regard to any change in insurance carriers, provided thecoverage has been continuous and under the same group sponsorship;
(b) The viator submits independent evidence to the viaticalsettlementprovider that one or more of the following conditions have been met within thetwo-year period:
(1) The viator or insured is terminally or chronically ill;
(2) the viator's spouse dies;
(3) the viator divorces such viator's spouse;
(4) the viator retires from full-time employment;
(5) the viator becomes physically or mentally disabled anda physiciandetermines that the disability prevents the viator from maintaining full-timeemployment;
(6) a finalorder, judgment or decree is entered by a court ofcompetentjurisdiction, on the application of a creditor of the viator, adjudicating theviator bankrupt or insolvent, or approving a petition seeking reorganization ofthe viator or appointing a receiver, trustee or liquidator to all or asubstantial part of the viator's assets; or
(7) the beneficiary of the policy is a familymemberof the viatorand the beneficiary dies.
(c) Copies of the independent evidence described insubsection (b) and documents required bysubsection (a) ofK.S.A. 2009 Supp.40-5009a, and amendments thereto, shall be submittedto theinsurer when theviaticalsettlement provider submits a request to the insurer for verification ofcoverage. The copies shall be accompanied by a letter of attestation from theviatical settlement provider that the copies are true and correct copies of thedocuments received by the viatical settlement provider. No provision in thissection shall prohibit an insurer from exercising its right to contest thevalidity of any policy.
(d) If the viatical settlement provider submits to theinsurer a copy of theowner or insured's certification described in subsection (b)when providersubmits a request to the insurer to effect the transfer of the policy orcertificate to the viatical settlement provider, the copy shall be deemed toconclusively establish that the viatical settlement contract satisfies therequirements of this section and the insurer shall timely respond to therequest.
History: L. 2002, ch. 158, § 10;L. 2008, ch. 96, § 8; July 1.