9. That, except for double or additional indemnity provisions for accidental death, as a result of the viatical settlement contract no beneficiary named by the policyholder or certificate holder will receive any insurance proceeds under the policy or certificate.
10. The name of the new policyholder or certificate holder under the viatical settlement contract.
(c) 1. Every viatical settlement shall be reasonable and shall meet the following minimum payment requirements:
a. If the insured's life expectancy is 6 months or less, 80% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
b. If the insured's life expectancy is more than 6 months but not more than 12 months, 75% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
c. If the insured's life expectancy is more than 12 months but not more than 24 months, 65% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
d. If the insured's life expectancy is more than 24 months but not more than 36 months, 55% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
e. If the insured's life expectancy is more than 36 months but not more than 48 months, 45% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
f. If the insured's life expectancy is more than 48 months, 30% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
2. If the total of the premiums that the viatical settlement provider expects to pay under the policy or certificate exceeds 5% of the face value of the policy or certificate, the viatical settlement provider may reduce the minimum payment amount under subd. 1. by the percentage of the face value that the total of the premiums that the viatical settlement provider expects to pay equals.
(d) Every viatical settlement contract entered into in this state shall provide that the policyholder or certificate holder entering into the contract has the unconditional right to rescind the contract within 30 days after the contract is entered into or 15 days after receiving the viatical settlement proceeds, whichever is sooner. If the policyholder or certificate holder wishes to rescind the contract after receipt of the viatical settlement proceeds, the policyholder or certificate holder must refund the proceeds.
(e) If a policy or certificate that is the subject of a viatical settlement contract contains a provision for double or additional indemnity for accidental death, the viatical settlement contract shall provide for the same additional payment to a beneficiary named payable in the viatical settlement contract by the policyholder or certificate holder.
(f) Upon receipt from the policyholder or certificate holder of all documents necessary for the transfer of the life insurance policy or certificate, the viatical settlement provider shall pay all of the proceeds of the settlement into a trust account or escrow account in a bank, to be managed by a trustee or escrow agent. The trustee or escrow agent shall pay the proceeds to the former policyholder or certificate holder immediately upon receiving acknowledgement from the insurer issuing the life insurance policy or certificate that the policy or certificate has been transferred to the viatical settlement provider. Payment shall be made in a lump sum by certified check, wire transfer or electronic fund transfer to an account of the former policyholder or certificate holder, or in instalments if the settlement is effected through the purchase of an annuity or similar instrument from a person authorized by this or another state to issue annuities.
(10) General rules related to viatical settlements. (a) A viatical settlement provider or broker may not discriminate in the making of viatical settlements on the basis of race, age, sex, national origin, creed, religion, occupation, marital or family status, sexual orientation or whether the person whose life is insured under the policy or certificate has dependents, unless any such factor affects the life expectancy of the person whose life is insured.
(b) A viatical settlement provider or broker may not pay or offer to pay a finder's fee, commission or other compensation to a physician, attorney, accountant or other person providing medical, legal or financial planning services to the policyholder or certificate holder of a policy or certificate that may be the subject of a viatical settlement contract, or to any other person acting as an agent of the policyholder or certificate holder with respect to a viatical settlement.
(c) A viatical settlement provider or broker shall comply with the confidentiality requirements of ss. 51.30, 146.82 and 252.15 with respect to any medical information obtained by the viatical settlement provider or broker concerning the person whose life is insured under the policy or certificate.
(d) Contacts by a viatical settlement provider or broker for the purpose of determining the health status of a person whose life is insured under a policy or certificate that was the subject of a viatical settlement contract shall be limited to once every 3 months if the person's life expectancy was more than one year at the time that the viatical settlement contract was entered into and once per month if the person's life expectancy was one year or less at the time that the viatical settlement contract was entered into.
(e) The owner of a life insurance policy or certificate may not be required to enter into a viatical settlement contract as a condition of eligibility for public assistance, or as a condition for receiving the full amount of public assistance benefits for which the person is otherwise eligible.
(f) A viatical settlement provider or broker may not solicit or accept as investors in a life insurance policy or certificate that is the subject of a viatical settlement contract persons who are in a position to influence the treatment of the catastrophic or life-threatening illness or condition of the person whose life is insured under the policy or certificate.
(g) 1. Advertising related to viatical settlements shall be truthful and may not be misleading by fact or implication.
2. If an advertisement emphasizes the speed with which a viatical settlement may occur, the advertisement shall disclose, by life expectancy category under sub. (9) (c), the average time between the completion of the application and the receipt of the settlement proceeds under contracts with the advertiser.
3. If an advertisement emphasizes the amount of proceeds that may be received, the advertisement shall disclose, by life expectancy category under sub. (9) (c), the average purchase price as a percentage of policy face value that has been obtained under contracts with the advertiser during the past 6 months.
(11) Additional regulatory authority. (a) The commissioner may require the filing of a bond as a condition of licensure under this section.
(b) The commissioner may promulgate rules that do any of the following:
1. Establish standards for determining the reasonableness of payments under viatical settlement contracts that exceed the minimum percentages under sub. (9) (c).
2. Establish the maximum fee that a viatical settlement provider may pay a viatical settlement broker for services provided.
3. Establish standards regarding the duty of insurers to respond without unreasonable delay to a request, in writing and authorized by the policyholder or certificate holder, from a viatical settlement provider or broker for information related to a policy or certificate.
4. Define a viatical settlement agent and establish regulations related to viatical settlement agents that are consistent with this section.
5. Establish any additional standards that may be necessary for the administration of this section.
371,10
Section 10
.
Initial applicability; revenue.
(1) Sales of certain insurance policies. The treatment of sections 71.05 (1) (f), 71.26 (3) (a) and (ag) and 71.45 (2) (a) 14. of the statutes first applies to taxable years beginning on January 1, 1996.
