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Ohio Laws and Rules
(A) A viatical settlement provider entering into a viatical settlement contract shall first obtain all of the following:
(1) If the viator is the insured, a written statement from an attending physician that the viator is of sound mind and under no constraint or undue influence to enter into a viatical settlement contract. As used in this division, “physician” means a person authorized under Chapter 4731. of the Revised Code to practice medicine and surgery or osteopathic medicine and surgery.
(2) A document in which the insured consents in writing, as required by division (E) of section 3916.13 of the Revised Code, to the release of the insured’s medical records to a viatical settlement provider or viatical settlement broker and to the insurance company that issued the life insurance policy or certificate covering the life of the insured.
(B) Within twenty days after a viator executes documents necessary to transfer any rights under an insurance policy or certificate or within twenty days of entering any expressed or implied agreement, option, promise, or other form of understanding to viaticate the policy, the viatical settlement provider shall give written notice to the insurer that issued that insurance policy or certificate that the policy or certificate has or will become a viaticated policy or certificate. The notice shall be accompanied by the documents required by division (C) of this section.
(C) The viatical provider shall deliver a copy of the medical release required under division (A)(2) of this section, a copy of the viator’s application for the viatical settlement contract, the notice required under division (B) of this section, and a request for verification of coverage to the insurer that issued the life insurance policy or certificate that is the subject of the viatical transaction. The viatical provider shall use the NAIC’s form for verification unless standards for verification are developed by the superintendent.
(D) The insurer shall respond to a request for verification of coverage submitted on an approved form by a viatical settlement provider within thirty calendar days after 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 that time regarding the validity of the life insurance contract or certificate that is the subject of the request.
(E) Prior to or at the time of execution of the viatical settlement contract, the viatical settlement provider shall obtain a witnessed document in which the viator consents to the viatical settlement contract, represents that the viator has a full and complete understanding of the viatical settlement contract and a full and complete understanding of the benefits of the life insurance policy or certificate, and acknowledges that the viator is entering into the viatical settlement contract freely and voluntarily and, for persons with a terminal or chronic illness or condition, acknowledges that the insured has a terminal or chronic illness and that the terminal or chronic illness or condition was diagnosed after the life insurance policy or certificate was issued.
(F) If a viatical settlement broker performs any of the activities specified in this section on behalf of the viatical settlement provider, the provider is deemed to have fulfilled the requirements of this section.
(G) All medical information solicited or obtained by any licensee shall be subject to the applicable provisions of state law relating to confidentiality of medical information.
Effective Date: 10-05-2001