Title 18 — Insurance Code

§ 7501. Short title. This chapter may be cited as the “Delaware Viatical Settlements Act.”72 Del. Laws, c. 132, § 1; 81 Del. Laws, c. 172, § 1;

§ 7502. Definitions. As used in this chapter: (1) “Advertising” means any written, electronic or printed communication, or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet, or similar communications media, including film …

§ 7503. License and bond requirements. (a) A person may not operate as a viatical settlement provider or viatical settlement broker without first obtaining a license from the Commissioner of the state of residence of the viator. (b) A life insurance producer who has been duly lic…

§ 7504. License revocation and denial. (a) The Commissioner may refuse to issue, suspend, revoke or refuse to renew the license of a viatical settlement provider or viatical settlement broker if the Commissioner finds any of the following: (1) There was a material misrepresentati…

§ 7505. Approval of viatical settlement contracts and disclosure statements. A person may not use a viatical settlement contract form or provide to a viator a disclosure statement form in this State unless it is first filed with and approved by the Commissioner. The Commissioner …

§ 7506. Reporting requirements and privacy. (a) Each viatical settlement provider shall file with the Commissioner on or before March 1 of each year an annual statement containing such information as the Commissioner may prescribe by regulation. Such information is limited to onl…

§ 7507. Examination or investigations. (a) Authority, scope and scheduling of examinations. — (1) The Commissioner may conduct an examination under this Act of a licensee as often as the Commissioner, in the Commissioner’s discretion, deems appropriate after considering the facto…

§ 7508. Disclosure to viator. (a) With each application for a viatical settlement, a viatical settlement provider or viatical settlement broker shall provide the viator with at least the following disclosures no later than the time the application for the viatical settlement cont…

§ 7509. Disclosure to insurer. Prior to the initiation of a plan, transaction, or series of transactions, a viatical settlement broker or viatical settlement provider shall fully disclose to an insurer a plan, transaction, or series of transactions, to which the viatical settleme…

§ 7510. General rules. (a) A viatical settlement provider entering into a viatical settlement contract shall first obtain the following: (1) If the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constra…

§ 7511. Prohibited practices. (a) It is a violation of this Act for any person to enter into a viatical settlement contract at any time prior to the application or issuance of a policy which is the subject of viatical settlement contract or within a 5-year period commencing with …

§ 7512. Prohibited practices and conflicts of interest. (a) With respect to any viatical settlement contract or insurance policy, a viatical settlement broker may not knowingly solicit an offer from, effectuate a viatical settlement with, or make a sale to any viatical settlement…

§ 7513. Advertising for viatical settlements. (a) The purpose of this section is to provide prospective viators with clear and unambiguous statements in the advertisement of viatical settlements and to assure the clear, truthful, and adequate disclosure of the benefits, risks, li…

§ 7514. Fraud prevention and control. (a) Fraudulent viatical settlement acts, interference, and participation of convicted felons prohibited. — (1) A person may not commit a fraudulent viatical settlement act. (2) A person may not knowingly or intentionally interfere with the en…

§ 7515. Injunctions; civil remedies; cease and desist. (a) In addition to the penalties and other enforcement provisions of this Act, if any person violates this Act or any regulation implementing this Act, the Commissioner, through the Attorney General, may seek an injunction in…

§ 7516. Authority to promulgate regulations. The Commissioner has the authority to: (1) Promulgate regulations implementing this chapter. (2) Establish standards for evaluating reasonableness of payments under viatical settlement contracts for persons who are terminally or chroni…

§ 7517. Unfair trade practices. A violation of this Act, including the commission of a fraudulent viatical settlement act, is an unfair or deceptive act or practice in the business of insurance under § 2304 of this title, subject to the penalties contained in Chapter 23 of this t…

§ 7518. Nonpreemption of requirements under the Delaware Securities Act. Nothing in this chapter preempts any provision set forth in Chapter 73 of Title 6, as amended, including the regulation of securities transactions in viatical settlement investments and the licensing of any …

§ 7519. Severability. If any portion of this Act or any amendments thereto, or its applicability to any person or circumstance is held invalid by a court, the remainder of this Act or its applicability to other persons or circumstances are not affected.81 Del. Laws, c. 172, § 1;

§ 7520. Effective date. A viatical settlement provider or viatical settlement broker transacting business in this State may continue to do so pending approval or disapproval of the provider or broker’s application for a license as long as the application is filed with the Commiss…