§ 27-72-6 - Reporting requirements and privacy. [Effective July 1, 2010.]. - Rhode Island Statutes

SECTION 27-72-6

   § 27-72-6  Reporting requirements andprivacy. [Effective July 1, 2010.]. – (a) For any policy settled within five (5) years of policy issuance, eachprovider shall file with the commissioner on or before March 1 of each year anannual statement containing such information as the commissioner may prescribeby regulation. In addition to any other requirements, the annual statementshall specify the total number, aggregate face amount and life settlementproceeds of policies settled during the immediately preceding calendar year,together with a breakdown of the information by policy issue year. The annualstatement shall also include the names of the insurance companies whosepolicies have been settled and the brokers that have settled said policies.

   (1) Such information shall be limited to only thosetransactions where the insured is a resident of this state and shall notinclude individual transaction data regarding the business of life settlementsor information that there is a reasonable basis to believe could be used toidentify the owner or the insured.

   (2) Every provider that willfully fails to file an annualstatement as required in this section, or willfully fails to reply withinthirty (30) days to a written inquiry by the commissioner in connectiontherewith, shall, in addition to other penalties provided by this chapter, besubject, upon due notice and opportunity to be heard, to a penalty of up to twohundred fifty dollars ($250) per day of delay, not to exceed twenty-fivethousand dollars ($25,000) in the aggregate, for each such failure.

   (3) The department may have this annual report reviewed andanalyzed by outside consultant(s) and the total cost of that review shall beborne by, billed directly to, and paid by the provider filing the annualstatement.

   (b) Except as otherwise allowed or required by law, aprovider, broker, insurance company, insurance producer, information bureau,rating agency or company, or any other person with actual knowledge of aninsured's identity, shall not disclose the identity of an insured orinformation that there is a reasonable basis to believe could be used toidentify the insured or the insured's financial or medical information to anyother person unless the disclosure:

   (1) Is necessary to effect a life settlement contract betweenthe owner and a provider and the owner and insured have provided prior writtenconsent to the disclosure;

   (2) Is necessary to effectuate the sale of life settlementcontracts, or interests therein, as investments, provided the sale is conductedin accordance with applicable state and federal securities law and providedfurther that the owner and the insured have both provided prior written consentto the disclosure;

   (3) Is provided in response to an investigation orexamination by the commissioner or any other governmental officer or agency orpursuant to the requirements of this chapter;

   (4) Is a term or condition to the transfer of a policy by oneprovider to another provider, in which case the receiving provider shall berequired to comply with the confidentiality requirements of this chapter;

   (5) Is necessary to allow the provider or its authorizedrepresentatives to make contacts for the purpose of determining health status.For the purposes of this section, the term "authorized representative " shallnot include any person who has or may have any financial interest in thesettlement contract other than a provider, licensed broker, financing entity,related provider trust or special purpose entity; further, a provider or brokershall require its authorized representative to agree in writing to adhere tothe privacy provisions of this chapter; or

   (6) Is required to purchase stop loss coverage.

   (c) Non-public personal information solicited or obtained inconnection with a proposed or actual life settlement contract shall be subjectto the provisions applicable to financial institutions under the federal GrammLeach Bliley Act, P.L. 106-102 (1999), and all other state and federal lawsrelating to confidentiality of non-public personal information.