632.68
632.68
Regulation of viatical settlement contracts. 632.68(1)(b)
(b) "Viatical settlement" means payment to the policyholder of a life insurance policy, or to the certificate holder of a group life insurance certificate, insuring the life of a person who has a catastrophic or life-threatening illness or condition, in an amount that is less than the expected death benefit under the policy or certificate, for assigning, selling, devising or otherwise transferring the ownership of or the death benefit under the policy or certificate to the person paying the viatical settlement.
632.68(1)(c)
(c) "Viatical settlement broker" means a person that, for a fee, commission or other valuable consideration, offers or attempts to negotiate settlements between a life insurance policyholder or certificate holder and one or more viatical settlement providers. The term does not include a viatical settlement agent, as defined by the commissioner by rule under
sub. (11) (b) 4., or an attorney, accountant or financial planner retained by a policyholder or certificate holder to represent the policyholder or certificate holder.
632.68(1)(d)
(d) "Viatical settlement contract" means a written agreement providing for and establishing the terms of a viatical settlement.
632.68(1)(e)
(e) "Viatical settlement provider" means a person that pays a viatical settlement. The term does not include any of the following:
632.68(1)(e)1.
1. A financial institution, as defined in
s. 705.01 (3), that takes an assignment of a life insurance policy or certificate as collateral for a loan.
632.68(1)(e)2.
2. The issuer of a life insurance policy or certificate providing accelerated benefits under the policy or certificate.
632.68(1)(e)3.
3. A natural person who enters into no more than one agreement in a year for the transfer of the ownership of or the death benefit under a life insurance policy or a group life insurance certificate for an amount that is less than the expected death benefit under the policy or certificate.
632.68(1)(e)4.
4. A natural person who enters into an agreement for the transfer of the ownership of or the death benefit under a life insurance policy or a group life insurance certificate for an amount that is less than the expected death benefit under the policy or certificate and who is a member of the immediate family, as defined in
s. 23.33 (1) (h), of the life insurance policyholder or certificate holder.
632.68(2)
(2) Viatical settlement provider license requirement. 632.68(2)(a)(a) Except as provided in
sub. (1) (e) 3. and
4., no person may act as a viatical settlement provider, solicit or pay viatical settlements or enter into a viatical settlement contract with the policyholder of the life insurance policy, or the certificate holder of the group life insurance certificate, that is the subject of a viatical settlement contract unless the person obtains and has in effect a viatical settlement provider license under this subsection.
632.68(2)(b)
(b) A person may apply to the commissioner for a viatical settlement provider license on a form prescribed by the commissioner for that purpose. The application form shall require the applicant to provide the applicant's social security number, if the applicant is a natural person unless the applicant does not have a social security number, or the applicant's federal employer identification number, if the applicant is not a natural person. The fee specified in
s. 601.31 (1) (mm) shall accompany the application. After any investigation of the applicant that the commissioner determines is sufficient, the commissioner shall issue a viatical settlement provider license to an applicant that satisfies all of the following:
632.68(2)(b)2.
2. Provides complete information on the application, including the applicant's social security number, unless the applicant does not have a social security number, or federal employer identification number.
632.68(2)(b)3m.
3m. If a natural person who does not have a social security number, provides on a form prescribed by the department of workforce development a statement made or subscribed under oath or affirmation that the applicant does not have a social security number.
632.68(2)(b)4.
4. Fully discloses the identity of all stockholders, partners, officers and employees, if applicable.
632.68(2)(b)5.
5. If a corporation, is incorporated under the laws of this state or is authorized to transact business in this state.
632.68(2)(b)6.
6. Shows to the satisfaction of the commissioner all of the following:
632.68(2)(b)6.a.
a. If a natural person, that the applicant is competent and trustworthy, or, if a partnership, corporation or limited liability company, that all partners, members, directors or principal officers or persons in fact having comparable powers are competent and trustworthy.
632.68(2)(b)6.b.
b. If a natural person, that the applicant has the intent in good faith to do business as a viatical settlement provider, or, if a partnership, corporation or limited liability company, that the applicant has that intent and has included that purpose in the articles of association, incorporation or organization.
632.68(2)(b)6.c.
c. That the applicant has a good business reputation and, if a natural person, has had experience, training or education that qualifies the applicant to be a viatical settlement provider, or, if a partnership, corporation or limited liability company, that all partners, members, directors or principal officers or persons in fact having comparable powers have had experience, training or education that qualifies the applicant to be a viatical settlement provider.
632.68(2)(b)7.
7. If a nonresident, files with the commissioner a written designation of the applicant's agent in this state for service of process or executes in a form acceptable to the commissioner an agreement to be subject to the jurisdiction of the commissioner and the courts of this state on any matter related to the applicant's viatical settlement activities in this state, on the basis of service of process under
ss. 601.72 and
601.73.
632.68(2)(bc)1.1. The commissioner shall disclose a social security number obtained under
par. (b) to the department of workforce development in the administration of
s. 49.22, as provided in a memorandum of understanding entered into under
s. 49.857.
632.68(2)(bc)2.
2. The commissioner may disclose a social security number or federal employer identification number received under
par. (b) or
(e) to the department of revenue for the purpose of requesting certifications under
s. 73.0301.
632.68(2)(bm)1.1. Notwithstanding
par. (b), the commissioner may not issue a license under this subsection to a natural person who is delinquent in court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, or who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under
s. 59.53 (5) and related to paternity or child support proceedings, as provided in a memorandum of understanding entered into under
s. 49.857.
632.68(2)(bm)2.
2. Notwithstanding
par. (b), the commissioner may not issue a license under this subsection if the department of revenue certifies under
s. 73.0301 that the applicant is liable for delinquent taxes.
632.68(2)(c)
(c) Except as provided in
par. (cm), if the commissioner denies an application for a license under this subsection, the applicant may, within 20 days after receiving notice of the denial, demand a hearing. The demand shall be in writing and shall be served on the commissioner by delivering a copy to the commissioner or by leaving it at the commissioner's office. The commissioner shall hold a hearing not less than 10 days nor more than 30 days after service of the demand. Failure to demand a hearing within the required time constitutes waiver of a hearing.
632.68(2)(cm)1.1. If the commissioner denies an application for a license under this subsection for delinquent payments or for a failure to comply with a subpoena or warrant, the applicant is entitled to notice and a hearing only as provided in a memorandum of understanding entered into under
s. 49.857 and is not entitled to a hearing under
par. (c).
632.68(2)(cm)2.
2. If the commissioner denies an application for a license under this subsection for delinquent taxes, the applicant is entitled to a hearing under
s. 73.0301 (5) (a) but is not entitled to a hearing under
par. (c).
632.68(2)(d)
(d) A license issued under this subsection to a partnership, corporation or limited liability company authorizes all partners, members, directors or principal officers or persons in fact having comparable powers to act as a viatical settlement provider under the license. All persons acquiring authority under this paragraph to act under the license shall be named in the application and any supplements to the application.
632.68(2)(e)
(e) Except as provided in
sub. (3), a license issued under this subsection shall be renewed annually on the anniversary date upon payment of the fee specified in
s. 601.31 (1) (mp) and upon providing the licensee's social security number, unless the licensee does not have a social security number, or federal employer identification number, as applicable, if not previously provided on the application for the license or at a previous renewal of the license. If the licensee is a natural person who does not have a social security number, the license shall be renewed annually on the anniversary date upon payment of the fee specified in
s. 601.31 (1) (mp) and upon providing to the commissioner a statement made or subscribed under oath or affirmation, on a form prescribed by the department of workforce development, that the licensee does not have a social security number.
632.68(3)
(3) Viatical settlement provider license; revocation, suspension, limitation or refusal to renew. 632.68(3)(a)(a) Except as provided in
par. (b), the commissioner may revoke, suspend or refuse to renew a viatical settlement provider license if, after a hearing, the commissioner finds any of the following:
632.68(3)(a)1.
1. That the licensee misrepresented information in the application.
632.68(3)(a)2.
2. That the licensee has engaged in fraudulent or dishonest practices or is otherwise shown to be untrustworthy or incompetent to act as a viatical settlement provider.
632.68(3)(a)3.
3. That the licensee has failed to meet the minimum settlement payment requirements under
sub. (9) (c) or has demonstrated a pattern of making unreasonable payments to policyholders or certificate holders.
632.68(3)(a)4.
4. Notwithstanding
ss. 111.321,
111.322 and
111.335, that the licensee has been convicted of a misdemeanor or felony involving fraud, deceit or misrepresentation.
632.68(3)(a)5.
5. That the licensee has violated any provision of this section.
632.68(3)(b)1.1. The commissioner shall suspend, limit or refuse to renew a viatical settlement provider license issued to a natural person if the natural person is delinquent in court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, or if the natural person fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under
s. 59.53 (5) and related to paternity or child support proceedings, as provided in a memorandum of understanding entered into under
s. 49.857.
632.68(3)(b)2.
2. The commissioner shall revoke or refuse to renew a viatical settlement provider license if the department of revenue certifies under
s. 73.0301 that the licensee is liable for delinquent taxes.
632.68(3)(b)3.
3. The commissioner shall revoke a viatical settlement provider license if the commissioner determines, after a hearing, that the licensee provided false information in a statement provided under
sub. (2) (b) 3m. or
(e).
632.68(4)
(4) Viatical settlement broker license and other requirements. 632.68(4)(a)(a) Except as provided in
sub. (1) (c), no person may act as a viatical settlement broker unless the person obtains and has in effect a viatical settlement broker license under this subsection.
632.68(4)(b)
(b) A person may apply to the commissioner for a viatical settlement broker license on a form prescribed by the commissioner for that purpose. The application form shall require the applicant to provide the applicant's social security number, if the applicant is a natural person unless the applicant does not have a social security number, or the applicant's federal employer identification number, if the applicant is not a natural person. The fee specified in
s. 601.31 (1) (mr) shall accompany the application. The commissioner may not issue a license under this subsection unless the applicant provides his or her social security number, unless the applicant does not have a social security number, or its federal employer identification number, whichever is applicable. If the applicant is a natural person who does not have a social security number, the commissioner may not issue a license under this subsection unless the applicant provides, on a form prescribed by the department of workforce development, a statement made or subscribed under oath or affirmation that the applicant does not have a social security number.
632.68(4)(bc)1.1. The commissioner shall disclose a social security number obtained under
par. (b) to the department of workforce development in the administration of
s. 49.22, as provided in a memorandum of understanding entered into under
s. 49.857.
632.68(4)(bc)2.
2. The commissioner may disclose a social security number or federal employer identification number received under
par. (b) or
(c) to the department of revenue for the purpose of requesting certifications under
s. 73.0301.
632.68(4)(bm)1.1. The commissioner may not issue a license under this subsection to a natural person who is delinquent in court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, or who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under
s. 59.53 (5) and related to paternity or child support proceedings, as provided in a memorandum of understanding entered into under
s. 49.857.
632.68(4)(bm)2.
2. The commissioner may not issue a license under this subsection if the department of revenue certifies under
s. 73.0301 that the applicant is liable for delinquent taxes.
632.68(4)(c)
(c) Except as provided in
sub. (5), a license issued under this subsection shall be renewed annually on the anniversary date upon payment of the fee specified in
s. 601.31 (1) (ms) and upon providing the licensee's social security number, unless the licensee does not have a social security number, or federal employer identification number, as applicable, if not previously provided on the application for the license or at a previous renewal of the license. If the licensee is a natural person who does not have a social security number, the license shall be renewed annually, except as provided in
sub. (5), on the anniversary date upon payment of the fee specified in
s. 601.31 (1) (ms) and upon providing to the commissioner a statement made or subscribed under oath or affirmation, on a form prescribed by the department of workforce development, that the licensee does not have a social security number.
632.68(4)(d)
(d) A licensee under this subsection shall acquire and maintain professional liability insurance in an amount that is satisfactory to the commissioner.
632.68(4)(e)
(e) A licensee under this subsection is not subject to any prelicensing or continuing education that may be required by rule under
ch. 628.
632.68(5)
(5) Viatical settlement broker license; revocation, suspension, limitation or refusal to renew. 632.68(5)(a)(a) Except as provided in
par. (b), the commissioner may revoke, suspend or refuse to renew a viatical settlement broker license if, after a hearing, the commissioner finds any of the following:
632.68(5)(a)1.
1. That the licensee misrepresented information in the application.
632.68(5)(a)2.
2. That the licensee has engaged in fraudulent or dishonest practices or is otherwise shown to be untrustworthy or incompetent to act as a viatical settlement broker.
632.68(5)(a)3.
3. Notwithstanding
ss. 111.321,
111.322 and
111.335, that the licensee has been convicted of a misdemeanor or felony involving fraud, deceit or misrepresentation.
632.68(5)(a)4.
4. That the licensee has violated any provision of this section.
632.68(5)(b)1.1. The commissioner shall suspend, limit or refuse to renew a viatical settlement broker license issued to a natural person if the natural person is delinquent in court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, or if the natural person fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under
s. 59.53 (5) and related to paternity or child support proceedings, as provided in a memorandum of understanding entered into under
s. 49.857.
632.68(5)(b)2.
2. The commissioner shall revoke or refuse to renew a viatical settlement broker license if the department of revenue certifies under
s. 73.0301 that the licensee is liable for delinquent taxes.
632.68(5)(b)3.
3. The commissioner shall revoke a viatical settlement broker license if the commissioner determines, after a hearing, that the licensee provided false information in a statement submitted under
sub. (4) (b) or
(c).
632.68(6)
(6) Approval of viatical settlement contracts. No viatical settlement contract form may be used in this state unless it has been filed with and approved by the commissioner. Any viatical settlement contract form filed with the commissioner is approved if it is not disapproved within 60 days after filing. The commissioner shall disapprove a viatical settlement contract form if, in the commissioner's opinion, the contract or any of its provisions is unreasonable, contrary to any provision of this section, contrary to the public interest or otherwise misleading or unfair to the policyholder or certificate holder.
632.68(7)
(7) Reporting requirements. Annually, on or before March 1, every licensee under this section shall file with the commissioner a statement containing any information that the commissioner requires by rule.
632.68(8)
(8) Record keeping. Every licensee under this section shall maintain and make available for inspection by the commissioner records of all viatical settlement transactions. Names and other individual identifying information related to policyholders or certificate holders shall be considered confidential and may not be disclosed by the commissioner.
632.68(9)
(9) Requirements for viatical settlements and contracts. 632.68(9)(a)(a) If the policyholder or certificate holder who desires to enter into a viatical settlement contract is the person with a catastrophic or life-threatening illness or condition whose life is insured under the policy or certificate, the viatical settlement provider shall obtain all of the following before entering into the contract:
632.68(9)(a)1.
1. A written statement from the person's attending physician that the person is of sound mind.
632.68(9)(a)2.
2. A written statement, signed by the person and witnessed by 2 disinterested adults, in which the person does all of the following:
632.68(9)(a)2.b.
b. Acknowledges his or her catastrophic or life-threatening illness or condition.
632.68(9)(a)2.c.
c. Releases his or her medical records to the viatical settlement provider.
632.68(9)(a)2.d.
d. Represents that he or she understands the viatical settlement contract, the benefits under the life insurance policy or certificate and the relationship between the viatical settlement contract and the life insurance policy or certificate.
632.68(9)(a)2.e.
e. Acknowledges that he or she is entering into the viatical settlement contract freely and voluntarily.
632.68(9)(a)2.f.
f. Affirms that he or she has received a recommendation from a viatical settlement provider or a viatical settlement broker in writing to seek financial advice from an individual or entity other than the viatical settlement provider or a viatical settlement broker regarding the effect of the viatical settlement on creditor claims, income taxes and government benefits.
632.68(9)(b)
(b) Before the execution of a viatical settlement contract, a viatical settlement provider or a viatical settlement broker shall disclose to the policyholder or certificate holder all of the following:
632.68(9)(b)1.
1. That he or she is a viatical settlement provider or broker.
632.68(9)(b)1m.
1m. That there may be alternatives to viatical settlements for persons with a catastrophic or life-threatening illness or condition and what those alternatives are, including accelerated benefits under the life insurance policy or certificate.
632.68(9)(b)2.
2. That the policyholder or certificate holder should obtain financial advice from a financial counselor, a tax adviser or an appropriate agency.
632.68(9)(b)3.
3. That some or all of the viatical settlement proceeds may be taxable and that he or she should seek advice from a personal tax adviser.
632.68(9)(b)4.
4. That the viatical settlement proceeds may be subject to the claims of creditors.
