ORS 744.364
Life settlement contract requirements


(1)

Intentionally left blank —Ed.

(a)

A life settlement provider entering into a life settlement contract shall first obtain:

(A)

If the owner is the insured, a written statement from a licensed physician, a naturopathic physician licensed under ORS chapter 685, a physician assistant licensed under ORS 677.505 (Application of provisions governing physician assistants to other health professions) to 677.525 (Fees) or a nurse practitioner licensed under ORS 678.375 (Nurse practitioners) to 678.390 (Authority of nurse practitioner and clinical nurse specialist to write prescriptions or dispense drugs) that the owner is of sound mind and under no constraint or undue influence to enter into a life settlement contract; and

(B)

A document in which the insured consents to the release of the insured’s medical records to a licensed life settlement provider, life settlement broker and the insurance company that issued the life insurance policy covering the life of the insured.

(b)

Within 20 days after an owner executes documents necessary to transfer any rights under an insurance policy or, if the insured is terminally ill, within 20 days after an owner entering any agreement, option, promise or any other form of understanding, expressed or implied, to transfer the policy for value, the life settlement provider shall give written notice to the insurer that issued the insurance policy that the policy has or will become a settled policy. The notice must be accompanied by the documents required by paragraph (c) of this subsection.

(c)

The life settlement provider shall deliver a copy of the medical release required under paragraph (a)(B) of this subsection, a copy of the owner’s application for the life settlement contract, the notice required under paragraph (b) of this subsection and a request for verification of coverage to the insurer that issued the life policy that is the subject of the life transaction. The Director of the Department of Consumer and Business Services shall develop and approve a form for the request for verification.

(d)

The insurer shall respond to a request for verification of coverage submitted on an approved form by a life settlement provider or life settlement broker within 30 calendar days of the date the request is received and shall indicate whether, based on the medical evidence and documents provided, the insurer intends to pursue an investigation at this time regarding the validity of the insurance contract or possible fraud. The insurer shall accept a request for verification of coverage made on a form approved by the director. The insurer shall accept an original or facsimile or electronic copy of such request and any accompanying authorization signed by the owner. Failure by the insurer to meet its obligations under this subsection is a violation of the Insurance Code.

(e)

Prior to or at the time of execution of the life settlement contract, the life settlement provider shall obtain a witnessed document in which the owner consents to the life settlement contract, represents that the owner has a full and complete understanding of the life settlement contract, that the owner has a full and complete understanding of the benefits of the life insurance policy, acknowledges that the owner is entering into the life settlement contract freely and voluntarily and, for persons with a terminal illness or chronic illness or condition, acknowledges that the insured has a terminal illness or chronic illness and that the terminal illness or chronic illness or condition was diagnosed after the life insurance policy was issued.

(f)

If a life settlement broker performs any of the activities required of the life settlement provider, the provider is deemed to have fulfilled the requirements of this section that were performed by the broker.

(2)

All medical information solicited or obtained by any licensee is privileged and confidential under ORS 705.137 (Information that is confidential or not subject to disclosure).

(3)

Intentionally left blank —Ed.

(a)

All life settlement contracts entered into in this state must provide the owner with an absolute right to rescind the contract before the earlier of 60 calendar days after the date upon which the life settlement contract is executed by all parties or 30 calendar days after the life settlement proceeds have been sent to the owner under subsection (5) of this section.

(b)

The life settlement provider may condition rescission upon the owner both giving notice and repaying to the life settlement provider within the rescission period all proceeds of the settlement and any premiums, loans and loan interest paid by or on behalf of the life settlement provider in connection with or as a consequence of the life settlement.

(c)

If the insured dies during the rescission period, the life settlement contract is deemed to have been rescinded, subject to repayment within 60 calendar days of the death of the insured to the life settlement provider or purchaser of all life settlement proceeds and any premiums, loans and loan interest that have been paid by the life settlement provider or purchaser.

(d)

In the event of any rescission, if the life settlement provider has paid commissions or other compensation to a life settlement broker in connection with the rescinded transaction, the life settlement broker shall refund all such commissions and compensation to the life settlement provider within five business days following receipt of written demand from the life settlement provider. The demand must be accompanied by either the owner’s notice of rescission if rescinded at the election of the owner, or the notice of the death of the insured if rescinded by reason of the death of the insured within the applicable rescission period.

(4)

The life settlement purchaser shall have the right to rescind a life settlement contract within three days after the disclosures mandated by ORS 744.354 (Disclosure by life settlement provider, broker or investment agent to policy owner) (7) are received by the purchaser.

(5)

Intentionally left blank —Ed.

(a)

The life settlement provider shall instruct the owner to send the executed documents required to effect the change in ownership, assignment or change in beneficiary directly to an independent escrow agent selected by the provider.

(b)

Within three business days after the date the escrow agent receives the document, or from the date the life settlement provider receives the documents, if the owner erroneously provides the documents directly to the provider, the provider shall pay or transfer the proceeds of the life settlement into an escrow or trust account maintained in a state or federally chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation.

(c)

Upon payment of the settlement proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment or change in beneficiary forms to the life settlement provider or related provider trust or other designated representative of the life settlement provider. Upon the escrow agent’s receipt of the acknowledgment of the properly completed transfer of ownership, assignment or designation of beneficiary from the insurance company, the escrow agent shall pay the settlement proceeds to the owner.

(6)

Failure to pay the owner the full contract amount for the life settlement contract within the time set forth under subsection (5) of this section renders the life settlement contract voidable by the owner until the time full payment is tendered to and accepted by the owner. Funds are deemed sent by a life settlement provider to an owner as of the date that the escrow agent either releases funds for wire transfer to the owner or places a check for delivery to the owner via the United States Postal Service or another nationally recognized delivery service.

(7)

Intentionally left blank —Ed.

(a)

Contacts with the insured for the purpose of determining the health status of the insured by the life settlement provider or life settlement broker after the life settlement has occurred may be made only by the life settlement provider or broker licensed in this state or its authorized representatives and are limited to once every three months for insureds with a life expectancy of more than one year, and to no more than once per month for insureds with a life expectancy of one year or less.

(b)

The limitations set forth in this subsection do not apply to any contacts with an insured for reasons other than determining the insured’s health status. [2009 c.711 §13; 2014 c.45 §77; 2017 c.356 §98]

Source: Section 744.364 — Life settlement contract requirements, https://www.­oregonlegislature.­gov/bills_laws/ors/ors744.­html.

744.052
Definitions for ORS 744.052 to 744.089
744.053
Requirements to be licensed as insurance producer for class of insurance
744.056
Exemptions from insurance producer licensing requirements
744.058
Written examination
744.059
Qualifications for license
744.061
Banking institution as insurance producer
744.062
Issuance of insurance producer license
744.063
Nonresident insurance producer license
744.064
Persons licensed elsewhere
744.067
Exemptions from prelicensing education or examination requirement
744.068
Required notifications
744.072
Renewal or reinstatement of insurance producer license
744.073
Temporary insurance producer license
744.074
Authority of director to place licensee on probation or to suspend, revoke or refuse to issue or renew license
744.076
Payment of commission, service fee or brokerage
744.077
Conditions under which person licensed as insurance producer and consultant may accept commission or fee
744.078
Appointment of insurance producers
744.079
Termination of relationship with insurance producer
744.081
Termination of appointment
744.082
Waiver of requirement for nonresident insurance producer license applicant
744.083
Trust account for premium funds
744.084
Certificate of deposit in lieu of trust account
744.086
Applicability of Insurance Code to insurance producers transacting title insurance
744.087
Filing insurance producers compensation agreements
744.088
Training requirements to be licensed as insurance producer for long term care insurance
744.089
Report of administrative action taken against insurance producer
744.091
Additional conditions under which person licensed as insurer or insurance producer may charge commission or service fee
744.093
Solicitation or sale of insurance policy by retail insurance producer or wholesale insurance producer
744.101
Definitions
744.104
Travel insurance through travel retailers
744.107
Violations
744.111
Rules
744.300
License and indorsement
744.301
Exemptions from license requirement
744.303
Certificate of errors and omissions insurance
744.306
Contract between insurer and managing general agent
744.308
Limitations on authority of insurer and managing general agent
744.311
Books, bank accounts and records
744.313
Financial examination
744.314
Rules
744.316
Authority of director if managing general agent violates provisions of ORS 744.300 to 744.316
744.318
Definitions for ORS 744.318 to 744.384
744.321
Life settlement providers
744.323
Life settlement brokers
744.324
Life settlement investment agents
744.326
License application
744.328
Issuance of license
744.331
Expiration of license
744.333
Individual acting as provider under license of firm or corporation
744.336
Notification by licensee of material change affecting qualification for license
744.338
Suspension, revocation, refusal to issue or renew license
744.341
Terms of contract
744.343
Annual report and statement by provider
744.346
Examination of business and practices of licensee or applicant
744.354
Disclosure by life settlement provider, broker or investment agent to policy owner
744.359
Disclosure by life settlement broker or provider to insurer
744.362
Disclosure by insurance company to policy owner
744.364
Life settlement contract requirements
744.367
Limitations on ability to enter life settlement contract
744.369
Unlawful life settlement contract actions
744.372
Advertising of life settlement contracts
744.374
Enforcement of life settlement contract provisions
744.382
Prohibitions on finder’s fee, solicitations, discrimination
744.384
Rules
744.502
Definitions
744.505
Adjuster license required
744.515
Exemptions from adjuster licensing requirement
744.518
License application
744.521
Powers of director to issue, renew, amend, suspend and reinstate licenses
744.523
Conditions for licensing, renewing license for or amending license of business entity
744.525
Resident adjuster qualifications
744.528
Nonresident adjuster qualifications
744.531
Classes of insurance for adjusters
744.538
Change of circumstance of nonresident adjuster
744.541
Adjustment of claim under policy issued by unauthorized insurer
744.555
Temporary adjuster permit
744.575
Adjusting claims involving credit life or credit health insurance
744.578
Licensee’s place of business
744.581
Notices required
744.584
Prohibited conduct
744.602
Definitions
744.605
Insurance consultant’s license required
744.609
Exemptions
744.611
License application
744.614
Powers of director to issue, renew, amend, suspend and reinstate licenses
744.617
Conditions for licensing, renewing license for or amending license of business entity
744.619
Qualifications for resident insurance consultant’s license
744.621
Qualifications for nonresident insurance consultant’s license
744.626
Classes of insurance for consultants
744.631
Change of circumstance of nonresident insurance consultant
744.635
Errors and omissions insurance
744.638
Licensee’s place of business
744.641
Notices required
744.644
Prohibited conduct
744.650
Disclosure by insurance consultants
744.655
Rebates prohibited
744.665
Continuing education
744.700
Definitions for ORS 744.700 to 744.740
744.702
Third party administrator license
744.704
Exemptions from license requirement
744.706
Application for license
744.708
Waiver of information requirement
744.710
Issuance or denial of license
744.712
Expiration and renewal of license
744.714
Registration of persons exempt from licensure
744.716
Notification of change in ownership or control
744.718
Suspension, revocation or refusal of issuance or renewal of license
744.720
Agreement between insurer and third party administrator
744.722
Relationship of insurer and third party administrator regarding payments
744.724
Books and records
744.726
Errors and omissions insurance
744.728
Advertising
744.730
Disposition of charges and premiums
744.732
Contingent fee agreements
744.734
Notice to insureds regarding third party administrator
744.736
Delivery from insurer to insured
744.738
Annual report
744.740
Responsibility of insurer using third party administrator
744.800
Qualifications for reinsurance intermediary brokers and managers
744.802
Exemptions from application of requirements for reinsurance intermediary brokers and managers
744.804
Conditions under which reinsurance intermediary broker and insurer may enter into transactions
744.806
Records required to be kept by reinsurance intermediary brokers
744.808
Prohibition on use of unlicensed reinsurance intermediary broker
744.810
Conditions under which reinsurance intermediary manager and reinsurer may enter into transactions
744.812
Prohibitions on actions of reinsurance intermediary managers
744.814
Prohibition on use of unlicensed reinsurance intermediary manager
744.816
Director access to books, accounts and records
744.818
Errors and omissions insurance for reinsurance intermediary manager
744.820
Director authority if reinsurance intermediary broker or manager violates provisions of ORS 744.800 to 744.818
744.850
Definitions for ORS 744.850 to 744.858
744.852
Limited license for rental companies
744.854
Kinds of insurance authorized by limited license
744.856
Conditions for offer or sale of insurance
744.858
Revocation or suspension of limited license
744.860
Definitions for ORS 744.860 to 744.870
744.862
Limited license to sell insurance
744.864
Permissible sales
744.866
Training program
744.868
License suspension and revocation or other penalty
744.870
Compensation, bonuses and incentives
744.872
Rules
744.991
Criminal penalties
744.992
Civil penalties
744.994
Effect of license expiration or surrender on director’s investigation or disciplinary proceedings
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