NAC688C.180. Retention by viator of interest in death benefit.

     1. A viatical settlement may provide that a viator retains an interest in the death benefit of the policy subject to the viatical settlement.

     2. If a viatical settlement provides that a viator is to retain an interest in the death benefit of the policy, the viatical settlement must provide:

     (a) That the provider of viatical settlements will transfer to the provider of viatical settlements only the portion of the death benefit of the policy to which the provider of viatical settlements is entitled pursuant to the viatical settlement.

     (b) That the insurer issuing the policy shall pay the portion of the death benefit of the policy to which the provider of viatical settlements is not entitled to the beneficiary identified pursuant to the provisions of the policy.

     (c) That the provider of viatical settlements shall, upon acknowledgment by the insurer of the transfer of the death benefit of the policy to which the provider of viatical settlements is entitled:

          (1) Notify the viator, in writing, that the insurer has transferred to the provider of viatical settlements only the portion of the death benefit of the policy to which the provider of viatical settlements is entitled; or

          (2) Submit a copy of the instrument provided by the insurer to the provider of viatical settlements that confirms that the insurer has transferred to the provider of viatical settlements only the portion of the death benefit of the policy to which the provider of viatical settlements is entitled.

     (d) The amount of the premium for the policy that the provider of viatical settlements shall pay and the amount of the premium for the policy that the viator shall pay.

     (Added to NAC by Comm’r of Insurance by R180-03, eff. 11-15-2004)