Michigan Laws 550.523 – Disclosure of information
Current as of: 2024 | Check for updates
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A provider shall disclose all of the following information to the viator no later than the date the contract is signed by the viator:
(a) Options other than the contract for a person with a terminal illness or condition, including accelerated benefits offered by the issuer of the policy.
Terms Used In Michigan Laws 550.523
- Contract: A legal written agreement that becomes binding when signed.
- contract: means a written agreement entered into between a provider and a viator in which the provider will pay consideration that is less than the expected death benefit of the viator's policy in return for the viator's assignment, transfer, sale, devise, or bequest of the death benefit or ownership of the policy to the provider. See Michigan Laws 550.521
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
- Policy: means an individual life insurance policy or a certificate under a group life insurance policy. See Michigan Laws 550.521
- Provider: means a person who enters into a viatical settlement contract with a viator. See Michigan Laws 550.521
- Viator: means the owner or holder of a policy who has a terminal illness or condition and who enters into a viatical settlement contract. See Michigan Laws 550.521
(b) That some or all of the contract consideration may be taxable, and that assistance should be sought from a personal tax advisor.
(c) That the contract consideration could be subject to the claims of creditors.
(d) That receipt of the contract consideration may adversely affect the viator’s eligibility for government benefits or entitlements.
(e) The viator’s right to rescind the contract within 30 days after the date the contract is executed or within 15 days after the receipt of the contract consideration by the viator, whichever is less.
(f) The date by which the contract consideration will be available to the viator and the source of the consideration.