OIR Rule Hearing Report: Viatical Settlements
Oct 30, 2008
On Wednesday, October 29, 2008, the Florida Office of Insurance Regulation (“OIR”) held a public hearing regarding on the following proposed Rules that would administer the Viatical Settlement Act as provided by law:
69O-204.010: Purpose and Scope
69O-204.020: Definitions
69O-204.030: Forms Incorporated By Reference
69O-204.040: Prohibited Practices
69O-204.050: Verification of Coverage
Some brief public testimony was given regarding the annual report form.
The record will remain open until November 8, 2008 for interested parties to submit written comments. Comments may be submitted to Bernie Stoffel at Bernie.stoffel@floir.com.
Should you have any questions, please feel free to contact Colodny Fass.
The full text of the proposed Rules is:
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VIATICAL SETTLEMENT PROVIDERS
69O-204.010 Purpose and Scope.
The purpose of this Rule Chapter is to implement the provisions of Chapter 626, Part X, Florida Statutes.
Specific Authority 626.9925 FS. Law Implemented 626.991 FS. History–New________.
69O-204.020 Definitions.
In addition to the definitions in Section 626.9911, Florida Statutes, the following definitions apply to this regulation:
(1) “Control” or “effective control” as used in the Viatical Settlement Act and this rule chapter means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person.
(2) “Secondary market” means the assignment, transfer, sale, devise, or bequest of the death benefit or ownership of all or a portion of a viaticated life insurance policy or viaticated certificate of insurance.
Specific Authority 626.9925 FS. Law Implemented 626.9911(2), 626.9912(4), 626.9913(2), 626.9922(2), 626.9924, 626.9913(2) FS. History–New________.
69O-204.030 Forms Incorporated By Reference.
(1) The following forms are incorporated by reference to implement the provisions of Chapter 626, Part X, Florida Statutes.
(a) Form OIR-A3-1288, Viatical Settlement Provider Annual Report (REV 3/08).
(b) Form OIR-C1-1294, Notice of Intent to Use a Related Provider Trust (REV 10/05).
(2) All of the above referenced forms are available from the Office’s website, http://www.floir.com, by clicking on “search” and entering the form number.
(3) All applications, annual report filings, forms submitted by licensees for approval and associated documentation shall be submitted electronically to http://iportal.fldfs.com.
Specific Authority 626.9925 FS. Law Implemented 626.9912(2), 626.9912(3), 626.9913(2), 626.9921(3), 626.9921(4), 626.9928 FS. History–New________.
69O-204.040 Prohibited Practices and Conflicts of Interest.
With respect to any viatical settlement contract or insurance policy, no viatical settlement provider knowingly may enter into a viatical settlement contract with a viator, if, in connection with such viatical settlement contract, anything of value will be paid to a viatical settlement broker that is controlling, controlled by, or under common control with such viatical settlement provider, financing entity or related provider trust that is involved in such viatical settlement contract.
Specific Authority 626.9925 FS. Law Implemented 626.9911(9), 626.9916(1), 626.9916(5) FS. History–New________.
69O-204.050 Anti-Fraud.
Every licensed viatical settlement provider shall establish and maintain in accordance with the provisions of Section 626.9922, F.S.:
(1) Documentation of compliance with its anti-fraud plan and procedures filed in accordance with Section 626.99278, F.S.
(2) All documentation pertaining to resolved and unresolved material inconsistencies between medical records and insurance applications.
(3) Documentation pertaining to the mandatory reporting of possible fraudulent acts and prohibited practices set forth in Section 626.99275, F.S., to the Division of Insurance Fraud of the department.
Specific Authority 626.9925 FS. Law Implemented 626.99278, 626.9922, 626.99275 FS. History–New________.
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