§ 7811. Disclosures to owners and insureds. (a) The life settlement\nprovider or life settlement broker shall provide the owner with a\nseparate written document conspicuously displaying the information and\ndisclosures required by this subsection. The separate document shall be\nsigned by the owner and life settlement provider, no later than the date\nthe life settlement contract is signed by all parties. At a minimum, the\ndocument shall state:\n (1) that there are possible alternatives to life settlement contracts,\nincluding accelerated benefits offered by the issuer of the policy;\n (2) that some or all of the proceeds of a life settlement contract may\nbe taxable and that advice should be sought from a professional tax\nadvisor;\n (3) that the proceeds from a life settlement contract could be subject\nto the claims of creditors;\n (4) that receipt of proceeds from a life settlement contract may\nadversely affect the recipients' eligibility for public assistance or\nother government benefits or entitlements and that advice should be\nobtained from the appropriate agencies;\n (5) that the owner has a right to rescind a life settlement contract\nfrom the time of execution of the contract until fifteen days after the\nreceipt of the life settlement proceeds by the owner;\n (6) that proceeds will be sent to the owner within three business days\nafter the life settlement provider has received the insurer or group\nadministrator's acknowledgement that ownership of the policy or interest\nin the certificate has been transferred and the beneficiary has been\ndesignated in accordance with the terms of the life settlement contract;\n (7) that entering into a life settlement contract may cause other\nrights or benefits, including conversion rights and waiver of premium\nbenefits, that may exist under the policy or certificate of a group\npolicy to be forfeited by the owner and that assistance should be sought\nfrom a professional financial advisor;\n (8) the gross offer or bid that the life settlement provider shall pay\npursuant to the life settlement contract; the net amount to be paid to\nthe owner pursuant to the life settlement contract; the name of each\nlife settlement broker, life settlement intermediary, insurance producer\nor insurance consultant that will be compensated by the life settlement\nprovider, or any affiliate, parent corporation, or subsidiary of the\nlife settlement provider; and the amount of compensation that the life\nsettlement provider, or any affiliate, parent corporation or subsidiary\nof the life settlement provider, shall provide to a life settlement\nbroker, life settlement intermediary, insurance producer or insurance\nconsultant, or any affiliate, parent corporation or subsidiary of such\nbroker, intermediary, producer, or consultant, pursuant to the life\nsettlement contract. For the purposes of this paragraph, "gross offer or\nbid" means the total amount or value offered by the life settlement\nprovider for the purchase of one or more life insurance policies,\ninclusive of commissions and fees;\n (9) the date by which the funds will be available to the owner and the\ntransmitter of the funds;\n (10) that the life settlement provider or life settlement broker is\nrequired to provide an owner during the solicitation process with a\nconsumer information booklet in a form prescribed by the superintendent,\nor other similar material, subject to the approval of the\nsuperintendent;\n (11) that the insured may be contacted by either the life settlement\nprovider or life settlement broker, or any authorized representative\nthereof, for the purpose of determining the insured's health status or\nto verify the insured's address, and that the contact shall be limited\nto once every three months if the insured has a life expectancy of more\nthan one year, and no more than once per month if the insured has a life\nexpectancy of one year or less;\n (12) any affiliations or contractual arrangements b
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