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Alaska Administrative Code (Last Updated: January 12, 2017) |
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Title 3. Commerce, Community, and Economic Development. |
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Part 3.1. Banking, Securities, Small Loans and Corporations. |
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Chapter 3.31. Miscellaneous. |
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Article 3.31.3. Viatical Settlements. |
Section 3.31.400. Insurance company practices.
Latest version.
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(a) A life insurance company authorized to do business in this state shall respond to a request for verification of coverage from a viatical settlement provider or a viatical settlement broker within 30 days after the date the request is received, if the following are submitted with the request: (1) in the case of an individual policy, a form substantially similar to Appendix A of this section, completed by the viatical settlement provider or the viatical settlement broker in accordance with the instructions on the form; (2) in the case of group insurance coverage, a form substantially similar to Appendix B of this section, first completed by the group certificate holder to the extent the information is available to the group certificate holder, and then completed by the viatical settlement provider or viatical settlement broker in accordance with the instructions on the form. (b) Nothing in this section prohibits a life insurance company and either a viatical settlement provider or a viatical settlement broker from using another verification of coverage form that has been mutually agreed upon in writing in advance of the submission of the request. (c) For responding to a request for information from a viatical settlement provider or viatical settlement broker in compliance with this section, a life insurance company may not charge a fee in excess of any usual and customary charges to contract holders, group certificate holders, or insureds for similar services. (d) The life insurance company may send an acknowledgment of receipt of the request for verification of coverage to the policyholder or group certificate holder and, if the policyholder or group certificate holder is other than the insured, to the insured. In the acknowledgment, the life insurance company may include a general description of any accelerated death benefit that is available under a provision of or rider to the life insurance contract. (e) If a viatical settlement provider submits to the insurance company a request to effectuate the transfer of a life insurance policy and includes a copy of a certification signed by a viator or insured that meets at least one of the conditions of 3 AAC 31.395(g), the insurance company shall effectuate the transfer of the life insurance policy in a timely manner. APPENDIX A VERIFICATION OF COVERAGE FOR INDIVIDUAL POLICIES ________________________ Please provide the information requested in Section Two (below) with regard to the policy identified above and in accordance with the attached authorization. In addition, please provide the forms checked below which are available from your company to complete a viatical settlement transaction: [] Absolute Assignment/Change of Ownership/Viatical Assignment Form [] Change of Beneficiary [] Release of Irrevocable Beneficiary (if applicable) [] Waiver of Premium Claim Form [] Disability Waiver of Premium Approval Letter ________________________ Date Signature of a representative of Viatical Settlement Broker or Viatical Settlement Provider ________________________ ________________________ ________________________ Full name and address of Viatical Settlement Broker or Viatical Settlement Provider ________________________ Section Two: (To be completed by the life insurance company) 1) Fact amount of policy: $ __________________ 2) Original date of issue: ____ / ____ / ____ (Month/Date/Year) 3) Was face amount increased after original issue date? [] no [] yes a) If yes, when: ____ / ____ / ____ 4) Type of policy: ____________ (Term/Whole Life/Universal Life/Variable Life) 5) Is policy participating? [] no [] yes If yes, what is current dividend election? ____________ ________________________ 7) a) Current cash value: $ __________________ (Enter full amount, including cash value of any additional insurance and/or dividends accumulated at interest, minus policy loans and outstanding interest on policy loans) ________________________ ________________________ ________________________ ________________________ ________________________ 9) Has policy lapsed? [] no [] yes If yes, when did policy lapse? ____ / ____ / ____ If policy has lapsed, is coverage continued under non-forfeiture option? [] no [] yes If yes, indicate which option, amount of coverage, duration, etc.: _____ ________________________ 10) Is policy in force? [] no [] yes If yes, has the policy been reinstated within the last two years? [] no [] yes If yes, date of reinstatement: ____ / ____ / ____ ________________________ 12) Current premium mode: ____________ (Monthly, semi-annually, etc.) When is next premium due? ____ / ____ / ____ (Month/Day/Year) 13) Does the policy include a disability premium waiver provision/rider? [] no [] yes a) If yes, are premiums currently being waived? [] no [] yes b) If yes, since when? ____ / ____ / ____ ________________________ d) When is next review? ____ / ____ / ____ 14) Can payment of all or part of the death benefit be accelerated under this policy? [] no [] yes a) If yes, by what method is the benefit calculated, the lien method or ________________________ ________________________ c) Can any remaining death benefit be assigned? [] no [] yes 15) Has a claim for accelerated death benefit been submitted? [] no [] yes If yes, was payment made under this provision? [] no [] yes Amount paid: ________ Date paid: ________ 16) Do current records show any assignments of record? [] no [] yes 17) Do current records show any outstanding liens or encumbrances of record? [] no [] yes ________________________ Are they named irrevocably, or is owner otherwise limited in designation of new beneficiaries? [] no [] yes 19) Have any riders been added to this policy after issue? [] no [] yes ________________________ 20) If an ownership or beneficiary change or assignment were to be made on this policy, to whom would the completed forms be sent? APPENDIX B VERIFICATION OF GROUP LIFE INSURANCE BENEFITS Please provide the information requested in Section Two or Section Three, as appropriate, with regard to the individual and coverage described, in accordance with the attached authorization. In addition, please provide the forms checked below which are available from your company to complete a viatical settlement transaction: [] Absolute Assignment [] Change of beneficiary (irrevocable if applicable) [] Disability Waiver of premium claim or [] Disability Waiver of premium award letter ________________________ Date Signature of a representative of Viatical Settlement Broker or Viatical Settlement Provider ________________________ ________________________ ________________________ Full name and address of Viatical Settlement Broker or Viatical Settlement Provider ________________________ Section Two: (To be completed by the employer/group policyholder and the insurer. Both should indicate the parts they completed.) 1) BASIC COVERAGE: a) Is the plan self-insured or is coverage provided under a group policy ________________________ If by a group policy, please provide the name of the insurance company ________________________ ________________________ ________________________ d) Does BASIC coverage plan have contestable provisions? [] no [] yes e) Is BASIC coverage subject to a suicide provision? [] no [] yes f) Monthly premium paid by employer/group policyholder for BASIC life insurance: $__________ g) Monthly premium paid by employee/insured for BASIC life insurance: $__________ h) Is BASIC life insurance coverage [] Term [] Universal Life? i) If Universal Life, please indicate each value, if any: ______________ ii) Is this amount payable in addition to the face amount? [] no [] yes i) Is coverage in force? [] no [] yes j) When is the next premium due? ____ / ____ / ____ k) Have employee's coverage under the plan ever been reinstated? [] no [] yes If yes, date of reinstatement: ____ / ____ / ____ 2) SUPPLEMENTAL (OPTIONAL) COVERAGE a) Insurance Company for SUPPLEMENTAL life insurance coverage: __________________ b) Effective date of SUPPLEMENTAL life insurance coverage: ____ / ____ / ____ c) Face amount of SUPPLEMENTAL life insurance: __________________ d) Does SUPPLEMENTAL coverage plan have contestable provisions? [] no [] yes e) Is SUPPLEMENTAL coverage subject to a suicide provision? [] no [] yes f) Monthly premium paid by employee/group policyholder for supplemental life insurance: $ __________ g) Monthly premium paid by employee/insured for SUPPLEMENTAL life insurance: $ __________ h) Is SUPPLEMENTAL life insurance [] Term [] Universal Life? i) If Universal Life, please indicate cash value, if any: __________________ ii) Is this amount payable in addition to the face amount? [] no [] yes i) Is coverage in force? [] no [] yes j) When is the next premium due? ____ / ____ / ____ k) Has employee's coverage under this policy been reinstated within the last two years? [] no [] yes If yes, date of reinstatement: ____ / ____ / ____ 3) DISABILITY WAIVER OF PREMIUM a) Does plan provide for waiver of premium in the event of employee/injured's disability? BASIC [] no [] yes What is the waiting period? ____________ SUPPLEMENTAL [] no [] yes What is the waiting period? ____________ b) Are premiums currently being waived under disability premium waiver? BASIC [] no [] yes SUPPLEMENTAL [] no [] yes c) Who pays premiums under disability premium waiver? BASIC [] Insurance carrier [] Employer SUPPLEMENTAL [] Insurance carrier [] Employer d) What was the date of approval? ____ / ____ / ____ e) Next review date? ____ / ____ / ____ f) If the insured is no longer eligible for waiver, what amount of coverage can be converted to an individual policy? $ __________ i) Will a new suicide/contestability clause be in effect for the converted policy? [] no [] yes ii) Will assignee be notified if insured is no longer eligible for waiver? [] no [] yes 4) BENEFICIARIES, ASSIGNMENTS AND LIMITATIONS a) Who are the primary beneficiaries of the coverage(s)? ________________________ ________________________ b) Is any beneficiary under this policy designated irrevocably, or is insured otherwise limited in designation of new beneficiaries? [] no [] yes c) Can this coverage be assigned? BASIC [] no [] yes If yes, to a corporation? [] no [] yes To someone not related to insured? [] no [] yes SUPPLEMENTAL [] no [] yes If yes, to a corporation? [] no [] yes To someone not related to insured? [] no [] yes d) Do records show any assignments of record? [] no [] yes e) Do records show any outstanding liens or encumbrances of record? [] no [] yes f) The following parties (as applicable) should indicate whether they will provide notice to the assignee if the master policy is terminated. Group policyholder [] no [] yes Third party administrator (if any) [] no [] yes Insurance company [] no [] yes g) Can Assignee convert the coverage without the permission of insured? [] no [] yes 5) ACCELERATED DEATH BENEFITS a) Is there an Accelerated Death Benefit available under the coverage? BASIC [] no [] yes SUPPLEMENTAL [] no [] yes b) Has request for Accelerated Death Benefit been made? [] no [] yes c) Has payment been made to insured under this provision? [] no [] yes i) Amount Paid: __________ Date Paid: ____ / ____ / ____ ii) Is this amount a lien against death proceeds? [] no [] yes Interest rate __________ iii) Can the remaining death benefit be assigned? [] no [] yes 6) MISCELLANEOUS a) Is coverage portable? BASIC [] no [] yes SUPPLEMENTAL [] no [] yes b) If insured is no longer eligible for coverage under the group, will Assignee be notified? [] no [] yes If master policy discontinues, what amount can be converted to an individual policy? $ __________ Is this plan administered by a third party? [] no [] yes If yes, please provide the name, address and telephone number of administrator. Information not provided by the employer may be obtained from the insurance company if different from administrator identified above: Section Three: Under the terms of 3 AAC 31.400, the insurance company or the third party administrator named above is requested to complete the information not provided by the employer in Section Two, above, Item numbers: ________________ The answers provided to the identified questions reflect information in the files of the insurance company as of __________ (date)
Authorities
21.06.090;21.96.110;01.05.031;21.89.110;44.62.125
Notes
Authority
AS 21.06.090 AS 21.96.110 Editor's note: In 2010 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 21.89.110 as AS 21.96.110. As of Register 196 (January 2011), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to the authority citation that follows 3 AAC 31.400, so that the citation to former AS 21.89.110 now refers to the renumbered statute, AS 21.96.110.History
Eff. 8/25/2002, Register 163
References
3.31.400