Ch. 275

2004 LAWS OF MARYLAND

(1)      THERE ARE POSSIBLE ALTERNATES TO VIATICAL SETTLEMENT
CONTRACTS, INCLUDING ANY ACCELERATED DEATH BENEFITS OR POLICY LOANS
OFFERED UNDER THE VIATOR'S POLICY;

(2)      SOME OR ALL OF THE PROCEEDS OF THE VIATICAL SETTLEMENT
MAY BE TAXABLE UNDER FEDERAL OR STATE INCOME TAX LAW, AND ASSISTANCE
SHOULD BE SOUGHT FROM A PROFESSIONAL TAX ADVISER;

(3)      PROCEEDS OF THE VIATICAL SETTLEMENT COULD BE SUBJECT TO
THE CLAIMS OF CREDITORS;

(4)      RECEIPT OF THE PROCEEDS OF A VIATICAL SETTLEMENT MAY
ADVERSELY AFFECT THE VIATOR'S ELIGIBILITY FOR MEDICAID OR OTHER
GOVERNMENT BENEFITS OR ENTITLEMENTS, AND ADVICE SHOULD BE OBTAINED
FROM THE APPROPRIATE GOVERNMENT AGENCIES;

(5)      (I) THE VIATOR HAS THE RIGHT TO RESCIND A VIATICAL
SETTLEMENT CONTRACT FOR 15 CALENDAR DAYS AFTER RECEIPT OF THE VIATICAL
SETTLEMENT PROCEEDS BY THE VIATOR, SUBJECT TO REPAYMENT OF ALL VIATICAL
SETTLEMENT PROCEEDS AND ANY PREMIUMS AND LOAN INTEREST PAID BY THE
VIATICAL SETTLEMENT PROVIDER; AND

(II) IF THE INSURED DIES DURING THE RESCISSION PERIOD, THE
VIATICAL SETTLEMENT CONTRACT SHALL BE DEEMED TO HAVE BEEN RESCINDED,
SUBJECT TO REPAYMENT OF ALL VIATICAL SETTLEMENT PROCEEDS AND ANY
PREMIUMS, LOANS, AND LOAN INTEREST TO THE VIATICAL SETTLEMENT PROVIDER;

(6)     FUNDS WILL BE SENT TO THE VIATOR WITHIN 3 BUSINESS DAYS
AFTER THE VIATICAL SETTLEMENT PROVIDER HAS RECEIVED THE INSURER'S OR
GROUP ADMINISTRATOR'S ACKNOWLEDGMENT THAT OWNERSHIP OF OR INTEREST
IN THE POLICY HAS BEEN TRANSFERRED AND THE BENEFICIARY HAS BEEN
DESIGNATED;

(7)      ENTERING INTO A VIATICAL SETTLEMENT CONTRACT MAY CAUSE
OTHER RIGHTS OR BENEFITS, INCLUDING CONVERSION RIGHTS AND WAIVER OF
PREMIUM BENEFITS THAT MAY EXIST UNDER THE POLICY, TO BE FORFEITED BY THE
VIATOR, AND ASSISTANCE SHOULD BE SOUGHT FROM A FINANCIAL ADVISER; AND

(8)      (I) THE INSURED MAY BE CONTACTED BY EITHER THE VIATICAL
SETTLEMENT PROVIDER OR THE VIATICAL SETTLEMENT BROKER OR ITS
AUTHORIZED REPRESENTATIVE FOR THE PURPOSE OF DETERMINING THE
INSURED'S HEALTH STATUS; AND

(II) THIS CONTACT IS LIMITED TO:

1.       ONCE EVERY 3 MONTHS IF THE INSURED HAS A LIFE
EXPECTANCY OF MORE THAN 1 YEAR; AND

2.       NOT MORE THAN ONCE PER MONTH IF THE INSURED HAS
A LIFE EXPECTANCY OF 1 YEAR OR LESS.

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