Section 220. (a) Not later than the date of application for a life settlement contract, a life settlement provider shall provide to the owner, in a separate document signed by the owner, the following information:

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(1) that possible alternatives to life settlement contracts exist including, but not limited to, accelerated benefits offered by the issuer of the life insurance policy;

(2) that some or all of the proceeds of a life settlement contract may be taxable and that assistance should be sought from a professional tax advisor;

(3) that the proceeds from a life settlement contract may be subject to the claims of creditors;

(4) that receipt of proceeds from a life settlement contract may adversely affect the recipients’ eligibility for public assistance or other government benefits or entitlements and that advice should be obtained from the appropriate agencies;

(5) that the owner has a right to terminate a life settlement contract not more than 15 days after the date it is executed by all parties;

(6) that the owner has received the disclosures required by this section;

(7) that the following statement regarding rescission is included: ”Rescission, if exercised by the owner, is effective only if both notice of the rescission is given and the owner repays all proceeds and any premiums, loans and loan interest paid on account of the life settlement provider within the rescission period. If the insured dies during the rescission period, the life settlement contract shall be deemed to have been rescinded subject to repayment by the owner or the owner’s estate of all proceeds and any premiums, loans and loan interest to the life settlement provider.”;

(8) that proceeds will be sent to the owner within 3 business days after the life settlement provider has received the insurer or group administrator’s acknowledgement that ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated in accordance with the terms of the life settlement contract;

(9) that entering into a life settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy or certificate of a group policy, to be forfeited by the owner and that assistance should be sought from a professional financial advisor;

(10) the amount and method of calculating the compensation paid, or to be paid, to the life settlement broker or any other person acting for the owner in connection with the transaction;

(11) the date by which the funds will be available to the owner and the transmitter of the funds;

(12) that the commissioner shall require delivery of a buyer’s guide or a similar consumer advisory package in the form prescribed by the commissioner to owners during the solicitation process;

(13) the following statement: ”All medical, financial or personal information solicited or obtained by a life settlement provider or life settlement broker about an insured, including the insured’s identity or the identity of the insured’s family members, a spouse or a significant other, may be disclosed as necessary to effect the life settlement contract between the owner and the life settlement provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share information every 2 years.”;

(14) that the commissioner shall require life settlement providers and life settlement brokers to print separate signed fraud warnings on their applications and on their life settlement contracts as follows: ”Any person who knowingly presents false information in a life settlement application or contract may be found guilty of a crime and may be subject to fines and confinement in prison.”

(15) that the insured may be contacted by either the life settlement provider or life settlement broker or its authorized representative for the purpose of determining the insured’s health status or to verify the insured’s address; provided, however, that this contact shall be limited to once every 3 months if the insured has a life expectancy of more than 1 year and not more than once per month if the insured has a life expectancy of 1 year or less;

(16) the affiliation, if any, between the life settlement provider and the issuer of the insurance policy to be settled;

(17) that a life settlement broker represents exclusively the owner and not the insurer, the life settlement provider or any other person and that the broker owes a fiduciary duty to the owner, including a duty to act according to the owner’s instructions and in the best interest of the owner;

(18) the name, address and telephone number of the provider;

(19) the name, business address and telephone number of the independent third party escrow agent and the fact that the owner may inspect or receive copies of the relevant escrow or trust agreements or documents; and

(20) that a change of ownership may, in the future, limit the insured’s ability to purchase future insurance on the insured’s life because there is a limit to how much coverage insurers will issue on 1 life.

(b) The written disclosures shall be conspicuously displayed in any life settlement contract furnished to the owner by a life settlement provider, including any affiliations or contractual arrangements between the life settlement provider and the life settlement broker.

(c) A life settlement broker shall provide the owner and the life settlement provider with the following disclosures not later than the date the life settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in the life settlement contract or in a separate document signed by the owner and provide the following information:

(1) the name, business address and telephone number of the life settlement broker;

(2) a complete and accurate description of all the offers, counter offers, acceptances and rejections relating to the proposed life settlement contract;

(3) any affiliations or contractual arrangements between the life settlement broker and any person making an offer in connection with the proposed life settlement contracts;

(4) the name of each life settlement broker involved in the life settlement agreement who receives compensation and the amount of compensation received by that broker, which compensation shall include anything of value paid or given to the life settlement broker in connection with the life settlement contract;

(5) a complete reconciliation of the gross offer or bid by the life settlement provider to the net amount of proceeds or value to be received by the owner; provided, however, that for the purpose of this section, ”gross offer” or ”bid” shall mean the total amount or value offered by the life settlement provider for the purchase of a life insurance policies, inclusive of commissions and fees; and

(6) that a failure to provide the disclosures or rights described in this section shall be deemed an unfair trade practice under chapter 176D.

(c) A life settlement broker shall disclose to the owner anything of value paid or given to the life settlement broker relating to a life settlement contract.