§ 7811. Disclosures to owners and insureds. (a) The life settlement
provider or life settlement broker shall provide the owner with a
separate written document conspicuously displaying the information and
disclosures required by this subsection. The separate document shall be
signed by the owner and life settlement provider, no later than the date
the life settlement contract is signed by all parties. At a minimum, the
document shall state:

(1) that there are possible alternatives to life settlement contracts,
including accelerated benefits offered by the issuer of the policy;

(2) that some or all of the proceeds of a life settlement contract may
be taxable and that advice should be sought from a professional tax
advisor;

(3) that the proceeds from a life settlement contract could be subject
to the claims of creditors;

(4) that receipt of proceeds from a life settlement contract may
adversely affect the recipients' eligibility for public assistance or
other government benefits or entitlements and that advice should be
obtained from the appropriate agencies;

(5) that the owner has a right to rescind a life settlement contract
from the time of execution of the contract until fifteen days after the
receipt of the life settlement proceeds by the owner;

(6) that proceeds will be sent to the owner within three business days
after the life settlement provider has received the insurer or group
administrator's acknowledgement that ownership of the policy or interest
in the certificate has been transferred and the beneficiary has been
designated in accordance with the terms of the life settlement contract;

(7) that entering into a life settlement contract may cause other
rights or benefits, including conversion rights and waiver of premium
benefits, that may exist under the policy or certificate of a group
policy to be forfeited by the owner and that assistance should be sought
from a professional financial advisor;

(8) the gross offer or bid that the life settlement provider shall pay
pursuant to the life settlement contract; the net amount to be paid to
the owner pursuant to the life settlement contract; the name of each
life settlement broker, life settlement intermediary, insurance producer
or insurance consultant that will be compensated by the life settlement
provider, or any affiliate, parent corporation, or subsidiary of the
life settlement provider; and the amount of compensation that the life
settlement provider, or any affiliate, parent corporation or subsidiary
of the life settlement provider, shall provide to a life settlement
broker, life settlement intermediary, insurance producer or insurance
consultant, or any affiliate, parent corporation or subsidiary of such
broker, intermediary, producer, or consultant, pursuant to the life
settlement contract. For the purposes of this paragraph, "gross offer or
bid" means the total amount or value offered by the life settlement
provider for the purchase of one or more life insurance policies,
inclusive of commissions and fees;

(9) the date by which the funds will be available to the owner and the
transmitter of the funds;

(10) that the life settlement provider or life settlement broker is
required to provide an owner during the solicitation process with a
consumer information booklet in a form prescribed by the superintendent,
or other similar material, subject to the approval of the
superintendent;

(11) that the insured may be contacted by either the life settlement
provider or life settlement broker, or any authorized representative
thereof, for the purpose of determining the insured's health status or
to verify the insured's address, and that the contact shall be limited
to once every three months if the insured has a life expectancy of more
than one year, and no more than once per month if the insured has a life
expectancy of one year or less;

(12) any affiliations or contractual arrangements between the life
settlement provider and the issuer of the policy to be settled;

(13) any affiliations or contractual arrangements with any other life
settlement provider, life settlement broker, life settlement
intermediary or party financing the transaction;

(14) that a life settlement broker represents exclusively the owner,
and not the insurer or the life settlement provider or any other person,
and owes a fiduciary duty to the owner, including a duty to act
according to the owner's instructions and in the best interest of the
owner;

(15) the name, business address, telephone number and e-mail address
of the independent, third party escrow agent and that the owner has the
right to inspect or receive copies of the relevant escrow or trust
agreements or documents;

(16) that a change of ownership could in the future limit the
insured's ability to purchase future insurance on the insured's life
because there is a limit to how much coverage insurers will issue on one
life; and

(17) the name, business address, telephone number and e-mail address
of the life settlement provider.

(b) The life settlement provider or life settlement broker shall
provide to the insured in a separate written document conspicuously
displaying the information and disclosures required by this subsection.
The separate document shall be signed by the insured no later than the
date the life settlement contract is signed by all parties. The document
shall:

(1) state that the insured may be contacted by either the life
settlement provider or life settlement broker or any authorized
representative thereof, for the purpose of determining the insured's
health status or to verify the insured's address, and that the contact
shall be limited to once every three months if the insured has a life
expectancy of more than one year, and no more than once per month if the
insured has a life expectancy of one year or less;

(2) state that a change of ownership could in the future limit the
insured's ability to purchase additional insurance on the insured's life
because there is a limit to how much coverage insurers will issue on one
life; and

(3) contain the following language, or such other language required by
the superintendent by regulation: "All medical, financial or personal
information solicited or obtained by a life settlement provider or life
settlement broker about an insured, including the insured's identity or
the identity of family members, a spouse or a significant other may be
disclosed as necessary to effect the life settlement contract between
the owner and provider. If you are asked to provide this information,
you will be asked to consent to the disclosure. The information may be
provided to someone who buys the policy or provides funds for the
purchase. You may be asked to renew your permission to share information
every two years".

(c) The life settlement broker shall provide the owner with a separate
written document conspicuously displaying the information and
disclosures required by this subsection. The separate document shall be
signed by the owner and life settlement broker, no later than the date
the life settlement contract is signed by all parties. At a minimum, the
document shall state:

(1) the name, business address, telephone number and e-mail address of
the life settlement broker;

(2) a full, complete and accurate description of all the offers,
counter-offers, acceptances and rejections relating to the proposed life
settlement contract;

(3) any affiliations or contractual arrangements with any life
settlement provider, other life settlement broker, life settlement
intermediary or any financing entity;

(4) the gross amount to be paid pursuant to the life settlement
contract, the net amount of the proceeds to be paid to the owner
pursuant to the life settlement contract, the amount of compensation to
be paid to the life settlement broker pursuant to the life settlement
contract, and the name of such life settlement broker. For purposes of
this paragraph, "gross amount to be paid" means the total amount or
value to be paid by the life settlement provider for the purchase of one
or more life insurance policies, inclusive of commissions and fees; and

(5) a complete reconciliation of the gross offer or bid by the life
settlement provider to the net amount of proceeds or value to be
received by the owner, provided that for the purpose of this section,
"gross offer or bid" shall mean the total amount or value offered by the
life settlement provider for the purchase of one or more life insurance
policies, inclusive of commissions and fees.