§ 7813. General rules. (a) A life settlement provider entering into a\nlife settlement contract shall first obtain a written consent from the\ninsured to the release of the insured's medical records subject to the\nlimitations contained in section seven thousand eight hundred ten of\nthis article.\n (b) The insurer shall respond to a request for verification of\ncoverage submitted by a life settlement provider, life settlement broker\nor life settlement intermediary within fifteen days after the date the\nrequest is received. The insurer shall complete and issue the\nverification of coverage or indicate the specific reasons why it is\nunable to respond. In its response, the insurer shall indicate whether,\nbased on the medical evidence and documents provided, the insurer is\npursuing or intends to pursue an investigation regarding the validity of\nthe policy.\n (c) The life settlement provider shall give written notice to the\ninsurer that issued the policy within ten days after the life settlement\ncontract is executed by all parties.\n (d) Unless the insurer is pursuing or intends to pursue an\ninvestigation, the insurer shall, within fifteen days of receipt of a\nrequest for a change of ownership or assignment used to effectuate the\ntransfer or assignment of the owner's rights or benefits under a policy\nto a life settlement provider, process the change of ownership or\nassignment and notify the life settlement provider and the owner that\nthe transfer or assignment has been effectuated.\n (e) If a life settlement broker performs any activity required of the\nlife settlement provider in this section or provides any disclosures\nrequired by section seven thousand eight hundred eleven of this article,\nthen the life settlement provider is deemed to have performed that\nactivity or provided that disclosure.\n (f) All medical information solicited or obtained by any licensee or\nany other person shall be subject to the provisions applicable to health\ncare providers under the public health law and all applicable laws\nrelating to confidentiality of medical information, provided that, to\nthe extent that this chapter provides for greater confidentiality of\nmedical information, this chapter shall govern.\n (g)(1) Every life settlement contract shall provide that the owner has\nan unconditional right to rescind the life settlement contract from the\ntime of execution of the contract until fifteen days after the receipt\nof the life settlement proceeds by the owner by giving notice of\nrescission to the life settlement provider by midnight of the fifteenth\nday.\n (2) Within five days after receipt of the notice of rescission, the\nlife settlement provider shall provide a written statement to the owner\nitemizing the amount of all life settlement proceeds and any premiums,\nloans and loan interest paid or to be paid as of a date certain as may\nbe requested by the owner.\n (3) Within fifteen days after the receipt of the written, itemized\nstatement by the owner, the owner must repay all such life settlement\nproceeds and any premiums, loans and loan interest paid by the life\nsettlement provider.\n (4) If the insured dies during the rescission period, the life\nsettlement contract shall be deemed to have been rescinded, subject to\nrepayment of all life settlement proceeds and any premiums, loans and\nloan interest paid by the life settlement provider.\n (5) Within five days after receipt of notice of the insured's death\nduring the rescission period, the life settlement provider shall provide\na written statement to the owner or, if the owner is deceased, to the\nlegal representative of the owner's estate, itemizing the amount of all\nlife settlement proceeds and any premiums, loans and loan interest paid\nor to be paid as of a date certain as may be requested by the owner or\nthe legal representative of the owner's estate. As soon as practicable,\nthe owner or the owner's estate shall repay all such proceeds and any
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.