38.2-6009 - Prohibited practices. - Virginia Statutes

§ 38.2-6009. Prohibited practices.

A. It is a violation of this chapter for any person to enter into a viaticalsettlement contract within a two-year period commencing with the date ofissuance of the insurance policy or certificate unless the viator certifiesto the viatical settlement provider that one or more of the followingconditions have been met within the two-year period:

1. The policy was issued upon the viator's exercise of conversion rightsarising out of a group or individual policy, provided the total of the timecovered under the conversion policy plus the time covered under the priorpolicy is at least 24 months. The time covered under a group policy shall becalculated without regard to any change in insurance carriers, provided thecoverage has been continuous and under the same group sponsorship;

2. The viator submits independent evidence to the viatical settlementprovider that one or more of the following conditions have been met withinthe two-year period:

a. The insured is terminally or chronically ill, or

b. The viator or insured disposes of his ownership interests in a closelyheld corporation pursuant to terms of a buyout or other similar agreement ineffect at the time the insurance policy was initially issued.

B. Copies of the certifications and independent evidence required by thissubsection and documents required by subsection A of § 38.2-6008 shall besubmitted to the insurer when the viatical settlement provider submits arequest to the insurer for verification of coverage. The copies shall beaccompanied by a letter of attestation from the viatical settlement providerthat the copies are true and correct copies of the documents received by theviatical settlement provider.

(2003, c. 717.)