31A-36-110 - Payment and document requirements. - Utah Statutes

31A-36-110. Payment and document requirements.
(1) (a) A life settlement provider shall instruct the owner to send the executed documentsrequired to effect the change in ownership or assignment or change of beneficiary of the affectedpolicy to a designated independent escrow agent.
(b) Within three business days after the day on which the escrow agent receives thedocuments, or within three business days after the day on which the life settlement providerreceives the documents if by mistake they are sent directly to the life settlement provider, the lifesettlement provider shall deposit the proceeds of the life settlement into an escrow or trustaccount of the escrow agent in a federally insured depository institution.
(2) (a) Upon completion of the requirements of Subsection (1), the escrow agent shalldeliver the original documents executed by the owner to:
(i) the life settlement provider; or
(ii) a related provider trust or other designated representative of the life settlementprovider.
(b) Upon the life settlement provider's receipt from the insurer of an acknowledgment ofthe change in ownership or assignment or change of beneficiary of the affected policy, the lifesettlement provider shall instruct the escrow agent to pay the proceeds of the life settlement tothe owner.
(3) Payment to the owner must be made within three business days after the day onwhich the life settlement provider receives the acknowledgment from the insurer. Failure tomake the payment within that time makes the life settlement voidable by the owner for lack ofconsideration until payment is tendered to and accepted by the owner.

Amended by Chapter 355, 2009 General Session