(1) An owner may not enter into a life settlement at any time before the application or issuance of a policy.
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Terms Used In Utah Code 31A-36-111

  • Application: means a document:
         (10)(a)
              (10)(a)(i) completed by an applicant to provide information about the risk to be insured; and
              (10)(a)(ii) that contains information that is used by the insurer to evaluate risk and decide whether to:
                   (10)(a)(ii)(A) insure the risk under:
                        (10)(a)(ii)(A)(I) the coverage as originally offered; or
                        (10)(a)(ii)(A)(II) a modification of the coverage as originally offered; or
                   (10)(a)(ii)(B) decline to insure the risk; or
         (10)(b) used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Chronically ill: means :
         (3)(a) being unable to perform at least two activities of daily living, such as eating, toileting, moving from one place to another, bathing, dressing, or continence;
         (3)(b) requiring substantial supervision for protection from threats to health and safety because of severe cognitive impairment; or
         (3)(c) having a level of disability similar to that described in Subsection (3)(a). See Utah Code 31A-36-102
  • Creditor: means a person, including an insured, having a claim, whether:
         (39)(a) matured;
         (39)(b) unmatured;
         (39)(c) liquidated;
         (39)(d) unliquidated;
         (39)(e) secured;
         (39)(f) unsecured;
         (39)(g) absolute;
         (39)(h) fixed; or
         (39)(i) contingent. See Utah Code 31A-1-301
  • Disability: means a physiological or psychological condition that partially or totally limits an individual's ability to:
         (51)(a) perform the duties of:
              (51)(a)(i) that individual's occupation; or
              (51)(a)(ii) an occupation for which the individual is reasonably suited by education, training, or experience; or
         (51)(b) perform two or more of the following basic activities of daily living:
              (51)(b)(i) eating;
              (51)(b)(ii) toileting;
              (51)(b)(iii) transferring;
              (51)(b)(iv) bathing; or
              (51)(b)(v) dressing. See Utah Code 31A-1-301
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Filed: means that a filing is:
              (69)(a)(i) submitted to the department as required by and in accordance with applicable statute, rule, or filing order;
              (69)(a)(ii) received by the department within the time period provided in applicable statute, rule, or filing order; and
              (69)(a)(iii) accompanied by the appropriate fee in accordance with:
                   (69)(a)(iii)(A) Section 31A-3-103; or
                   (69)(a)(iii)(B) rule. See Utah Code 31A-1-301
  • Financing entity: includes , if the requirements of Subsection (5)(a) are met, the following:
              (5)(b)(i) an underwriter;
              (5)(b)(ii) a placement agent;
              (5)(b)(iii) an enhancer of credit;
              (5)(b)(iv) a lender;
              (5)(b)(v) a purchaser of securities; and
              (5)(b)(vi) a purchaser of a policy from a life settlement provider. See Utah Code 31A-36-102
  • Form: means , in addition to a form as defined in Section 31A-1-301:
         (6)(a) a life settlement;
         (6)(b) a disclosure to an owner;
         (6)(c) a notice of intent to settle; or
         (6)(d) a verification of coverage. See Utah Code 31A-36-102
  • Individual: means a natural person. See Utah Code 31A-1-301
  • insolvent: means that:
         (95)(a) an insurer is unable to pay the insurer's obligations as the obligations are due;
         (95)(b) an insurer's total adjusted capital is less than the insurer's mandatory control level RBC under Subsection 31A-17-601(8)(c); or
         (95)(c) an insurer's admitted assets are less than the insurer's liabilities. See Utah Code 31A-1-301
  • Insurance: includes :
              (96)(b)(i) a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
              (96)(b)(ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
              (96)(b)(iii) a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
  • Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:
              (103)(a)(i) a policyholder;
              (103)(a)(ii) a subscriber;
              (103)(a)(iii) a member; and
              (103)(a)(iv) a beneficiary. See Utah Code 31A-1-301
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Life settlement: includes :
              (8)(b)(i) the transfer for compensation or value of ownership or beneficial interest in a trust or other entity that owns a policy if the trust or other entity is formed or operated for the principal purpose of acquiring one or more policies; or
              (8)(b)(ii) a premium finance loan made for a policy by a lender to an owner on, before, or after the date of issuance of the policy if the owner:
                   (8)(b)(ii)(A) receives on the date of the premium finance loan a guarantee of a future life settlement value of the policy; or
                   (8)(b)(ii)(B) agrees on the date of the premium finance loan to sell the policy or any portion of the policy's death benefit on a date following the issuance of the policy. See Utah Code 31A-36-102
  • Life settlement producer: means a person licensed in the state as a life insurance producer that on behalf of an owner and for consideration offers or attempts to negotiate a life settlement between the owner and one or more life settlement providers. See Utah Code 31A-36-102
  • Life settlement provider: means a person other than an owner that enters into or effectuates a life settlement. See Utah Code 31A-36-102
  • Life settlement purchaser: means a person that, to derive an economic benefit:
              (11)(a)(i) provides a sum of money as consideration for a policy or an interest in the death benefits of a policy; or
              (11)(a)(ii) owns, acquires, or is entitled to a beneficial interest in a trust that:
                   (11)(a)(ii)(A) owns a life settlement; or
                   (11)(a)(ii)(B) is the beneficiary of a policy that has been or will be the subject of a life settlement. See Utah Code 31A-36-102
  • Order: means an order of the commissioner. See Utah Code 31A-1-301
  • Owner: means any of the following who resides in this state and seeks to enter into a life settlement:
              (12)(a)(i) the owner of a policy; or
              (12)(a)(ii) the holder of a certificate of a group policy. See Utah Code 31A-36-102
  • Person: includes :
         (146)(a) an individual;
         (146)(b) a partnership;
         (146)(c) a corporation;
         (146)(d) an incorporated or unincorporated association;
         (146)(e) a joint stock company;
         (146)(f) a trust;
         (146)(g) a limited liability company;
         (146)(h) a reciprocal;
         (146)(i) a syndicate; or
         (146)(j) another similar entity or combination of entities acting in concert. See Utah Code 31A-1-301
  • Policy: means :
         (13)(a) an individual or group life insurance policy;
         (13)(b) an individual or group annuity policy;
         (13)(c) a group life insurance certificate;
         (13)(d) a group annuity certificate; or
         (13)(e) a life insurance policy or an annuity policy, whether or not delivered or issued for delivery in Utah:
              (13)(e)(i) affecting the rights of a resident of Utah; or
              (13)(e)(ii) bearing a reasonable relation to Utah. See Utah Code 31A-36-102
  • Premium: includes , however designated:
              (156)(b)(i) an assessment;
              (156)(b)(ii) a membership fee;
              (156)(b)(iii) a required contribution; or
              (156)(b)(iv) monetary consideration. See Utah Code 31A-1-301
  • producer: means a person licensed or required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Utah Code 31A-1-301
  • Related provider trust: means a trust established by a licensed life settlement provider or a financing entity solely to hold the ownership of or beneficial interests in purchased policies in connection with financing. See Utah Code 31A-36-102
  • 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.
  • Terminally ill: means having a condition that reasonably may be expected to result in death within 24 months. See Utah Code 31A-36-102
  • under common control: means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person. See Utah Code 31A-1-301
  • Writing: includes :
         (48)(a) printing;
         (48)(b) handwriting; and
         (48)(c) information stored in an electronic or other medium if the information is retrievable in a perceivable format. See Utah Code 68-3-12.5
(2) An owner may not enter into a life settlement within two years after the date of issuance of the policy to which the life settlement relates unless the owner certifies to the life settlement provider that one of the following is satisfied:

     (2)(a) the policy was issued upon the owner’s exercise of conversion rights arising out of a group or individual policy if:

          (2)(a)(i) the total time covered under the conversion policy plus the time covered under the prior policy is at least 24 months; and
          (2)(a)(ii) the time covered under a group policy, calculated without regard to any change in insurance carriers, is continuous and under the same group sponsorship; or
     (2)(b) the owner submits to the life settlement provider independent evidence that within the two-year period:

          (2)(b)(i) the owner or insured is terminally ill;
          (2)(b)(ii) the owner or insured is chronically ill;
          (2)(b)(iii) the spouse of the owner dies;
          (2)(b)(iv) the owner divorces the owner’s spouse;
          (2)(b)(v) the owner retires from full-time employment;
          (2)(b)(vi) the owner acquires a physical or mental disability and a physician determines that the disability precludes the owner from maintaining full-time employment;
          (2)(b)(vii) a final judgment or order is entered or issued by a court of competent jurisdiction, on the application of a creditor of the owner:

               (2)(b)(vii)(A) adjudging the owner bankrupt or insolvent;
               (2)(b)(vii)(B) approving a petition for reorganization of the owner; or
               (2)(b)(vii)(C) appointing a receiver, trustee, or liquidator for all or a substantial part of the owner’s assets;
          (2)(b)(viii) the owner experiences a significant decrease in income that is unexpected and impairs the owner’s reasonable ability to pay the policy premium; or
          (2)(b)(ix) the owner or insured disposes of ownership interests in a closely held corporation, pursuant to the terms of a buyout or other similar agreement in effect at the time the policy is initially issued.
(3) An insurer may not, as a condition of responding to a request for verification of coverage or effecting the transfer of a policy pursuant to a life settlement, require any of the following to sign a form, disclosure, consent, or waiver that is not filed with the commissioner for use in connection with a life settlement in this state:

     (3)(a) an owner;
     (3)(b) an insured;
     (3)(c) a life settlement provider; or
     (3)(d) a life settlement producer.
(4)

     (4)(a) Upon receipt of a properly completed request for change of ownership or beneficiary of a policy, an insurer shall respond in writing within 30 calendar days of the day of receipt with written acknowledgment:

          (4)(a)(i) confirming that the change is effective; or
          (4)(a)(ii) specifying the reasons why the requested change cannot be processed.
     (4)(b) An insurer may not:

          (4)(b)(i) unreasonably delay effecting a change of ownership or beneficiary; and
          (4)(b)(ii) otherwise seek to interfere with a life settlement lawfully entered into in this state.
(5) A person may not issue, solicit, or market the purchase of a policy for the primary purpose of or with a primary emphasis on settling the policy.
(6)

     (6)(a) Unless disclosed to an owner before the execution of a life settlement by the owner, a life settlement producer may not knowingly with respect to the life settlement solicit an offer from, effectuate the life settlement with, or make a sale to any of the following that is controlling, controlled by, or under common control with the life settlement producer:

          (6)(a)(i) a life settlement provider;
          (6)(a)(ii) a life settlement purchaser;
          (6)(a)(iii) a financing entity; or
          (6)(a)(iv) a related provider trust.
     (6)(b) Unless disclosed to an owner before the execution of a life settlement by the owner, with respect to the life settlement, a life settlement provider may not knowingly enter into the life settlement with the owner, if, in connection with the life settlement, anything of value will be paid to a life settlement producer that is controlling, controlled by, or under common control with:

          (6)(b)(i) the life settlement provider;
          (6)(b)(ii) the life settlement purchaser;
          (6)(b)(iii) a financing entity; or
          (6)(b)(iv) a related provider trust.
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