Michigan Laws 550.524 – Documents to be obtained by provider; right to avoid or rescind contract
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(1) A provider entering into a contract with a viator shall obtain both of the following:
(a) A written statement from a physician that the viator is of sound mind and under no constraint or undue influence.
Terms Used In Michigan Laws 550.524
- 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
- Physician: means a person licensed in this or another state to practice medicine or osteopathic medicine. See Michigan Laws 550.521
- 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
- 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 The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded.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.
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- 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) A signed document by the viator stating:
(i) Consent to the contract.
(ii) Acknowledgment of the terminal illness or condition.
(iii) Representation that the viator has a full and complete understanding of the contract.
(iv) Representation that the viator has a full and complete understanding of the benefits of the policy.
(v) A release of the medical records and acknowledgment that the contract has been entered into freely and voluntarily. The provider shall keep all medical records received under this subparagraph confidential.
(2) A viatical settlement contract entered into in this state shall contain a provision giving the viator the right to void the contract for at least 30 days after the date the contract is signed, or 15 days after the receipt of the viatical settlement contract consideration, whichever is less. The provider shall notify the insurer of the policy of a rescission within 30 days of the date that a contract is rescinded under this subsection.