§ 10-7-601. Short Title

This part 6 shall be known and may be cited as the “Viatical Settlements Act”. Source: L. 2005: Entire part added, p. 1293, § 1, effective January 1, 2006.

§ 10-7-602. Definitions

As used in this part 6, unless the context otherwise requires: “Advertising” means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the internet, or similar communications media, including film strips, motion pictures, and videos, published, disseminated, circulated, or placed directly before the public […]

§ 10-7-603. Licensing

No person shall act on behalf of a viator or otherwise negotiate, as defined in section 10-2-103 (7.9), viatical settlement contracts between a viator and one or more viatical settlement providers unless such person is a life insurance producer and has been licensed as a resident producer with a life line of authority in his […]

§ 10-7-604. Licensure – Refusal to Issue – Suspension – Revocation – Refusal to Renew

The commissioner shall refuse to issue, suspend, revoke, or refuse to renew the license of a viatical settlement provider if the commissioner finds after compliance with subsection (3) of this section that: There was any material misrepresentation in the application for the license; The licensee or any of its officers, partners, members, or key management […]

§ 10-7-605. Forms Approval

A person may not use a viatical settlement contract or provide to a viator a disclosure statement form in this state unless such contract or form is first filed with and approved by the commissioner. Any settlement contract form or disclosure form filed with the commissioner shall be deemed approved if it has not been […]

§ 10-7-606. Annual Reports

Each viatical settlement provider shall file with the commissioner by March 1 of each year an annual statement containing such information as the commissioner prescribes by rule. This information is limited to only those transactions in which the viator is a resident of this state and does not include individual transaction data regarding the business […]

§ 10-7-607. Examinations

Authority, scope, and scheduling of examinations. The commissioner may conduct an examination under this part 6 of a licensee as often as the commissioner in his or her sole discretion deems appropriate. For purposes of completing an examination of a licensee under this part 6, the commissioner may examine or investigate any person, or the […]

§ 10-7-608. Disclosures

With each application for a viatical settlement contract, a viatical settlement provider or life insurance producer shall provide the viator with at least the following information, in a separate document signed by the viator and the viatical settlement provider or life insurance producer, no later than the time the application for the viatical settlement contract […]

§ 10-7-609. General Requirements

A viatical settlement provider entering into a viatical settlement contract shall first obtain: If the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constraint or undue influence to enter into a viatical settlement contract; and A document in which the insured […]

§ 10-7-610. Limited Purchase in Incontestability Period

It is a violation of this part 6 for a person to enter into a viatical settlement contract within a two-year period commencing with the date of issuance of the policy unless the viator certifies to the viatical settlement provider that one or more of the following conditions has been met within the two-year period: […]

§ 10-7-611. Advertising – Legislative Intent

It is the intent of the general assembly that the purpose of this section is to provide a prospective viator with clear and unambiguous statements in the advertisement of a viatical settlement contract and to assure the clear, truthful, and adequate disclosure of the benefits, risks, limitations, and exclusions of a viatical settlement contract. This […]

§ 10-7-612. Fraudulent Acts

A person shall not commit a fraudulent viatical settlement act. A person shall not knowingly or intentionally interfere with the enforcement of the provisions of this part 6 or investigations of suspected or actual violations of this part 6. A person in the business of viatical settlements shall not knowingly or intentionally permit a person […]

§ 10-7-613. Penalties

In addition to the penalties and other enforcement provisions of this part 6, if a person violates the provisions of this part 6 or any rule implementing this part 6, the commissioner may seek an injunction in a court of competent jurisdiction and may apply for temporary and permanent orders as the commissioner determines are […]

§ 10-7-614. Unfair Trade Practices

A violation of this part 6 shall constitute an unfair trade practice pursuant to part 11 of article 3 of this title and be subject to the penalties contained in such part 11. Source: L. 2005: Entire part added, p. 1322, § 1, effective January 1, 2006.

§ 10-7-615. Rules

The commissioner may: Promulgate rules implementing this part 6; Establish standards for evaluating the reasonableness of payments under a viatical settlement contract for a person who is terminally or chronically ill. This authority includes, but is not limited to, regulation of discount rates used to determine the amount paid in exchange for assignment, transfer, sale, […]

§ 10-7-616. No Preemption – Colorado Securities Act – Authority of Division of Securities

Nothing in this part 6 preempts or otherwise limits the provisions of the “Colorado Securities Act”, article 51 of title 11, C.R.S., or any rules, orders, policy statements, notices, bulletins, or other interpretations issued by or through the commissioner of securities or the commissioner of securities’ designee acting pursuant to the “Colorado Securities Act”. Compliance […]

§ 10-7-617. Application

A viatical settlement provider lawfully transacting business in this state may continue to do so pending approval or disapproval of the person’s application for a license as long as the application is filed with the commissioner not later than thirty days after publication by the commissioner of an application form for licensure of viatical settlement […]

§ 10-7-618. Continuation of Business

Notwithstanding any provision of this part 6 to the contrary, a person who has lawfully negotiated viatical settlement contracts between a viator and one or more viatical settlement providers for at least one year immediately prior to January 1, 2006, may continue to negotiate viatical settlements in this state for a period of one year […]

§ 10-7-619. Viatical Settlements Cash Fund – Created

All direct and indirect expenditures of the commissioner and the division in administering this part 6 shall be paid from the viatical settlements cash fund, which fund is hereby created in the state treasury. All fees collected pursuant to this part 6 shall be transmitted to the state treasurer, who shall credit them to the […]

§ 10-7-620. Severability

If any provision of this part 6 is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining provisions of this part 6, and to this end the provisions of this part 6 are expressly declared to be severable. Source: L. 2005: Entire part […]