Sec. 21. (a) A viatical
settlement contract must establish the terms under which the
viatical settlement provider will pay value, in return for the
viator‘s assignment,
bequest,
devise, sale, or transfer of the death benefit, certificate, or ownership of the insurance policy to the viatical settlement provider.
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Terms Used In Indiana Code 27-8-19.8-21
- Bequest: Property gifted by will.
- Contract: A legal written agreement that becomes binding when signed.
- Devise: To gift property by will.
- insured: refers to an individual whose life is the subject of insurance under a life insurance policy or contract. See Indiana Code 27-8-19.8-3
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- viatical settlement contract: means an agreement for the purchase, sale, assignment, transfer, devise, or bequest of a portion of the death benefit or ownership of a life insurance policy or contract for consideration that is less than the expected death benefit of the life insurance policy or contract. See Indiana Code 27-8-19.8-6
- viatical settlement provider: means a person, other than a viator, that:
Indiana Code 27-8-19.8-5
- viator: refers to the owner of a life insurance policy or a certificate holder under a group policy that insures the life of an insured who enters or seeks to enter into a viatical settlement contract. See Indiana Code 27-8-19.8-8
(1) the period ending not more than fifteen (15) days after the receipt of the viatical settlement proceeds by the viator; or
(2) the period ending not more than thirty (30) days after execution of the contract.
(c) A viatical settlement contract is rescinded if the insured dies during the rescission period, subject to repayment to the viatical settlement provider of all proceeds and any premiums, loans, and loan interest that have been paid by the viatical settlement provider.
As added by P.L.130-1994, SEC.47 and P.L.116-1994, SEC.70. Amended by P.L.32-1998, SEC.22; P.L.223-2005, SEC.6.
