(a)  No person may use any form of life settlement contract in this state unless it has been filed with and approved, if required, by the commissioner in a manner that conforms with the filing procedures and any time restrictions or deeming provisions, if any, for life insurance forms, policies, and contracts. The commissioner is authorized to contract with outside consultants to review life settlement forms and the total cost of that review shall be borne by, billed directly to, and paid by the provider filing the form(s).

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Terms Used In Rhode Island General Laws 27-72-5

  • Broker: means a person who, on behalf of an owner and for a fee, commission or other valuable consideration, offers or attempts to negotiate life settlement contracts between an owner and provider. See Rhode Island General Laws 27-72-2
  • Commissioner: means the director of the department of business regulation or his or her designee. See Rhode Island General Laws 27-72-2
  • Contract: A legal written agreement that becomes binding when signed.
  • Insured: means the person covered under the policy being considered for sale in a life settlement contract. See Rhode Island General Laws 27-72-2
  • Life settlement contract: means a written agreement entered into between a provider and an owner, establishing the terms under which compensation or any thing of value will be paid, which compensation or thing of value is less than the expected death benefit of the insurance policy or certificate, in return for the owner's assignment, transfer, sale, devise, or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation; provided, however, that the minimum value for a life settlement contract shall be greater than a cash surrender value or accelerated death benefit available at the time of an application for a life settlement contract. See Rhode Island General Laws 27-72-2
  • Owner: means the owner of a life insurance policy or a certificate holder under a group policy, with or without a terminal illness, who enters or seeks to enter into a life settlement contract. See Rhode Island General Laws 27-72-2
  • Person: means any natural person or legal entity including, but not limited to, a partnership, limited liability company, association, trust, or corporation. See Rhode Island General Laws 27-72-2
  • Policy: means an individual or group policy, group certificate, contract, or arrangement of life insurance owned by a resident of this state, regardless of whether delivered or issued for delivery in this state. See Rhode Island General Laws 27-72-2
  • Provider: means a person, other than an owner, who enters into or effectuates a life settlement contract with an owner. See Rhode Island General Laws 27-72-2
  • 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.

(b)  No insurer may, as a condition of responding to a request for verification of coverage or in connection with the transfer of a policy pursuant to a life settlement contract, require that the owner, insured, provider, or broker sign any form, disclosure, consent, waiver, or acknowledgment that has not been expressly approved by the commissioner for use in connection with life settlement contracts in this state.

(c)  A person shall not use a life settlement contract form or provide to an owner a disclosure statement form in this state unless first filed with and approved by the commissioner. The commissioner shall disapprove a life settlement contract form or disclosure statement form if, in the commissioner’s opinion, the contract or provisions contained therein fail to meet the requirements of this chapter or are unreasonable, contrary to the interests of the public, or otherwise misleading or unfair to the owner. At the commissioner’s discretion, the commissioner may require the submission of advertising material. The commissioner is authorized to contract with outside consultants to review life settlement forms and/or advertising and the total cost of that review shall be borne by, billed directly to, and paid by the provider filing the form(s).

History of Section.
P.L. 2009, ch. 195, § 1; P.L. 2009, ch. 262, § 1.