Ch. 275                                    2004 LAWS OF MARYLAND

(1)      IS UNABLE TO PERFORM AT LEAST TWO ACTIVITIES OF DAILY
LIVING;

(2)      REQUIRES SUBSTANTIAL SUPERVISION TO PROTECT THE
INDIVIDUAL FROM THREATS TO HEALTH AND SAFETY DUE TO SEVERE COGNITIVE
IMPAIRMENT; OR

(3)      HAS A LEVEL OF DISABILITY SIMILAR TO THAT DESCRIBED IN ITEM
(1) OF THIS SUBSECTION.

(D)     "CREDIT ENHANCER" INCLUDES AN AUTHORIZED INSURER THAT
PROVIDES TO A VIATICAL SETTLEMENT PROVIDER STOP LOSS COVERAGE, AN
ANNUITY POLICY, AN INSURANCE POLICY, OR SIMILAR COVERAGE.

(E)     "FINANCING ENTITY" MEANS A PERSON:

(1)      THAT IS AN UNDERWRITER, A PLACEMENT AGENT, A LENDER, A
PURCHASER OF SECURITIES, A PURCHASER OF A POLICY OR CERTIFICATE FROM A
VIATICAL SETTLEMENT PROVIDER, A CREDIT ENHANCER OR AN ENTITY THAT HAS A
DIRECT OWNERSHIP INTEREST IN A POLICY OR CERTIFICATE THAT IS THE SUBJECT
OF A VIATICAL SETTLEMENT CONTRACT; AND

(2)      (I) WHOSE PRINCIPAL ACTIVITY RELATED TO THE TRANSACTION
IS PROVIDING FUNDS TO EFFECT THE VIATICAL SETTLEMENT OR PURCHASE OF ONE
OR MORE VIATICATED POLICIES;

(II)     THAT HAS AN AGREEMENT IN WRITING WITH ONE OR MORE
REGISTERED VIATICAL SETTLEMENT PROVIDERS TO FINANCE THE ACQUISITION OF
VIATICAL SETTLEMENT CONTRACTS; OR

(III)   THAT IS A QUALIFIED INSTITUTIONAL BUYER, AS THAT TERM IS
DEFINED IN RULE 144A OF THE FEDERAL SECURITIES ACT OF 1933.

(F)     "FRAUDULENT VIATICAL SETTLEMENT ACT MEANS A FRAUDULENT
INSURANCE ACT AS DESCRIBED IN § 27-403(6) OF THIS ARTICLE.

(F) (G) "POLICY" MEANS AN INDIVIDUAL OR GROUP POLICY, GROUP
CERTIFICATE, CONTRACT, OR ARRANGEMENT OF LIFE INSURANCE THAT AFFECTS
THE RIGHTS OF A RESIDENT OF THE STATE OR THAT BEARS A REASONABLE
RELATION TO THE STATE, REGARDLESS OF WHETHER DELIVERED OR ISSUED FOR
DELIVERY IN THE STATE.

(G)     (H) "RELATED PROVIDER TRUST" MEANS A TITLING TRUST OR OTHER
TRUST THAT:

(1)      IS ESTABLISHED BY A REGISTERED VIATICAL SETTLEMENT
PROVIDER OR A FINANCING ENTITY FOR THE SOLE PURPOSE OF HOLDING THE
OWNERSHIP OR BENEFICIAL INTEREST IN PURCHASED POLICIES IN CONNECTION
WITH A FINANCING TRANSACTION; AND

(2)      HAS A WRITTEN AGREEMENT WITH THE REGISTERED VIATICAL
SETTLEMENT PROVIDER UNDER WHICH:

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