Section 70. Reporting requirements

A. On or before March 1 of each calendar year, each viatical settlement provider licensed in this Commonwealth shall file an annual report of all viatical settlement transactions where the viator is a resident of this Commonwealth on a form containing the following information, for the previous calendar year, for each of the viatical settlements contracted during the reporting period:

1. Date of the viatical settlement contract;

2. Life expectancy of the insured at the time of the contract, in months;

3. Face amount of the policy at the time of the contract;

4. Net death benefit viaticated;

5. Cash surrender value of the policy at time of the contract;

6. Accelerated death benefit available from the policy; and

7. Net amount paid by the viatical settlement provider to the viator to viaticate the policy.

B. In compliance with § 38.2-6011 E of the Code of Virginia, each viatical settlement provider shall certify annually to the commission the implementation of anti-fraud initiatives reasonably calculated to detect, prosecute, and prevent fraudulent viatical settlement acts. The required annual certification shall be filed on or before March 1 of each year that the viatical settlement provider is licensed in this Commonwealth. For persons licensed initially in accordance with provisions set forth in 14VAC5-71-31, the initial certification shall be filed within 60 days of initial licensure.

C. A viatical settlement provider shall report to the commission material changes in information filed with the commission at licensure, pursuant to 14VAC5-71-31 I 1, concerning the licensee's identity.

1. As used in this subsection, "material changes" means a change (i) in the name of the licensee, (ii) in the business or residence address of the licensee, (iii) in the identity, designation or official responsibilities of any director, officer, or other person who is authorized to act for or on behalf of the licensee, or (iv) in affiliation that results in any person acquiring a 10% or greater interest in the licensee or in an affiliate of the licensee.

2. A change resulting in the election or appointment of a new director or officer or in the designation of any partner, officer, member or employee that is to be authorized to act on behalf of the provider shall be reported on a form of biographical affidavit developed by the NAIC unless a more specific form is prescribed by the commission.

3. Notices of material changes required by this section shall be filed with the commission within 30 calendar days of the change.

D. A licensed viatical settlement provider convicted of a felony shall report to the commission within 30 calendar days of the conviction the facts and circumstances regarding the conviction.

E. The annual report required by subsection A of this section shall be filed with the Bureau of Insurance, marked to the attention of the Life and Health Market Regulation Division. The reports required by subsections B, C and D of this section shall be filed with the Bureau of Insurance, marked to the attention of the Financial Regulation Division.

Historical Notes

Derived from Volume 14, Issue 02, eff. October 15, 1997; amended, Virginia Register Volume 19, Issue 01, eff. September 4, 2002; Volume 20, Issue 05, eff. November 1, 2003.

Statutory Authority

§§ 12.1-13 and 38.2-223 of the Code of Virginia.