|TO:||All Interested Parties including all Life and Variable Life Insurance Companies and Fraternal Benefit Societies licensed to do business in the Commonwealth of Massachusetts|
|FROM:||Linda Ruthardt, Commissioner of Insurance|
|DATE:||January 8, 2001|
|RE:||New Requirements Regarding Viatical Settlement Agreements|
|This bulletin is to inform consumers, producers and those individuals interested in the viatical settlement industry of the enactment of Chapter 326 of the Acts of 2000, An Act Regulating Viatical Settlements Agreements. Chapter 326 establishes a new regulatory process for the viatical industry through the addition of sections 212 to 223 to M.G.L. chapter 175. These new sections include, among other things, the following provisions:|
The law establishes that any violation of Chapter 326 is an unfair trade practice pursuant to M.G.L. c.176D and authorizes the Commissioner of Insurance to promulgate regulations and establish standards and forms for implementing this Act. Kindly refer to : Chapter 326 for the full text of the law. Please also note that the Attorney General's office has applicable consumer protections codified at 940 CMR 18.00, promulgated in 1997.
The effective date of this Act is March 1, 2001. Additional details will be forthcoming prior to this date on matters necessary to implement the provisions of Chapter 326. Questions about this bulletin should be directed to the Division's Office of the General Counsel at 617-521-7309.