191—48.4 (508E) Disclosure statements.
	 48.4(1) If a viatical settlement provider enters into a viatical settlement contract that allows the viator to retain an interest in the policy, the viatical settlement contract shall contain the following:
	  a.   	 A provision that the viatical settlement provider will effect the transfer of the amount of the death benefit only to the extent or portion of the amount viaticated and that benefits in excess of the amount viaticated shall be paid directly to the viator’s beneficiary by the insurance company;
	  b.   	 A provision that the viatical settlement provider will, upon acknowledgment of the perfection of the transfer, either:
	 (1) 	 Advise the insured, in writing, that the insurance company has confirmed the viator’s interest in the policy; or
	 (2) 	 Send to the insured a copy of the document(s) sent from the insurance company to the viatical settlement provider that acknowledges the viator’s interest in the policy; and
	  c.   	 A provision that apportions the premiums to be paid by the viatical settlement provider and the viator. It is permissible for the viatical settlement contract to specify that all premiums shall be paid by the viatical settlement provider. The viatical settlement contract also may require that the viator reimburse the viatical settlement provider only for the premiums attributable to the retained interest.
	 48.4(2) With each application for a viatical settlement contract, a viatical settlement provider or viatical settlement broker shall provide the viator with at least the following disclosure no later than the time the application for the viatical settlement contract is signed by the viator and the viatical settlement broker. The disclosure shall be provided in a separate document that is signed by the viator and the viatical settlement provider or viatical settlement broker, and shall advise the viator that, when entering into a viatical settlement contract, having a recent physical examination is in the viator’s best interest, since an accurate life expectancy can be best calculated based on current medical records.
	 48.4(3) If the viator is not the insured, then these disclosures must be affirmatively made to the insured, as well as to the viator, and written consent to the viatication must be received from both parties.