Michigan Laws 550.528 – Order prohibiting provider from entering viatical settlement contract; additional orders
Current as of: 2024 | Check for updates
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(1) The commissioner may issue an order prohibiting the provider from entering into a viatical settlement contract in this state if the commissioner finds any of the following:
(a) The provider has been fraudulent or engaged in dishonest practices.
Terms Used In Michigan Laws 550.528
- Commissioner: means the commissioner of insurance. See Michigan Laws 550.521
- 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
- Fraud: Intentional deception resulting in injury to another.
- 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
- 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) The provider demonstrates a pattern of unreasonable payments to policy owners.
(c) The provider has been convicted of a felony or any misdemeanor that involved criminal fraud.
(d) The provider has violated a provision of this act.
(2) In addition to the order under subsection (1), the commissioner may order any of the following:
(a) Payment of a civil fine of not more than $500.00 for each violation.
(b) If the provider knew or reasonably should have known that the provider was in violation of this act, the repayment of all consideration paid by or on behalf of a viator for a viatical settlement contract affected by the violation and a civil fine of not more than $2,500.00 for each violation.
(c) A cease and desist order.