AGREEMENTS. SECTION 1. Chapter 175 of the General Laws is hereby amended by adding the. Be it enacted, etc., as follows:

30

days prior totheconveyance authorizedinsection 5,submit theappraisalanda report thereontotheinspectorgeneralfor hisreviewand

comment.

The

review and

comment

shall includeanexaminationofthe

methodology

utilizedfor the appraisal.Said inspector general shallprepare a reportofhisreview of the appraisaland filethereportwith said

commis-sioner,andcopiesofthe

same

shallbefiledwiththe houseandsenatecommittees

on ways

and

means

andthechairmen ofthe jointcommittee

on

stateadministration.VoltaOil Co.,

Inc.,shallberesponsibleforanycostsfor appraisals,surveyandotherexpenserelating to theconveyance oftheland,andforanycostsandliabilitiesand expenses of anynatureand

kindforthedevelopment,maintenanceoroperationofthe parcel.

SECTION

7.Ifthelandinsection 1ceasestobe usedatany timeforthepurposes

delineatedinthis actitshall,atthediscretionofthecommissioner ofthedivisionofcapital asset

management

and maintenance,revert

back

tothecareandcontrolofsaid divisionof capitalasset

management

and maintenance and anyfurtherdispositionof saidrealproperty landshallbesubjecttosections

40E

to40J,inclusive,ofchapter 7oftheGeneralLaws.

Approved

November

30,2000.

Chapter

326.

AN

ACT

REGULATING

VIATICAL

SETTLEMENTS

AGREEMENTS

Be

itenacted, etc.,asfollows:

SECTION

1.Chapter 175 oftheGeneral

Laws

ishereby

amended

by

addingthe following 12

sections:-Section 212.Sections

212

to223,inclusive,

may

becited astheViaticalSettlements Act.

Section 213.

As

usedinsections

212

to 223,inclusive, thefollowing

words

shall, unlessthecontext requiresotherwisehavethefollowing

meanings:-"Acceleratedbenefits", apolicy provision allowing fullorpartial

payment

ofthe death benefitbefore thedeathoftheinsuredbased

on

thephysicalconditionofthe insured. "Catastrophic condition", amedicalconditionreasonablyexpectedtoresult indeath within36 months, whetherornotmedicaltreatmentisprovided,where suchcondition has

beencertifiedto

by

a physician, including, but not limitedto, metastasized cancers,renal failure in persons not candidates for transplants, heart or lung disease in persons not candidatesfortransplantsand Acquired

Immune

Deficiency

Syndrome.

"Commissioner",thecommissionerof insurance.

Chap. 326

but(3)

whose

sole activityrelatedtothetransactionisproviding fundsto effecttheviatical settlement orviatical loan

and

(4)

who

hasan agreementinwritingwithaduly licensed viaticalsettlementproviderorviaticalloanproviderto actasa participant ina financing transaction.

"Financingtransaction",a transactionincompliance withfederalandstatesecurities laws in

which

a duly licensed viatical settlement provider orviatical loan provider or financingentityobtainsfinancing forviaticalsettlement contracts, viaticalloancontracts, viaticated policiesorintereststhereinincluding,withoutlimitation,any securedorunsecured

financing,anysecuritizationtransaction oranysecuritiesoffering, eitherregisteredor

exempt

from

registrationunderfederal

and

statesecuritieslaw.

"Insured", anindividual

who

isthe subjectofalife insurance policy orgrouplife

insurance contract. Forthepurposes ofsections

212

to223, inclusive itisthe insured's privacy

which

shallbeprotected,regardlessofwhethertheinsuredisalsothepolicy

owner

orcertificateholder.

"Person", a natural or artificial entity, including but not limited to, individuals, partnerships, associations,trustsor corporations.

"Viaticalloanborrower",the

owner

ofalifeinsurance policy or thecertificateholder under a group life insurance contract insuring the life ofa person with a catastrophic, life-threateningorchronicillnessorcondition

who

entersintoaviaticalloan contractwith

aviaticalloan provider.

"Viaticalloan broker",apersonthat,

on

behalfofaviaticalloan borrowerandfora fee,

commission

or other valuable consideration,offersorattemptstonegotiateviaticalloan contracts

between

a viatical loan borrower and one or

more

viatical loan providers. Irrespectiveofthe

manner

in

which

theviaticalloanbrokeriscompensated,aviaticalloan brokeris

deemed

torepresentonlytheviaticalloanborrower and

owes

a fiduciarydutyto theviaticalloan borrowerto actaccording totheborrower's instructions andinthebest interestoftheborrower.

A

viaticalloanbroker doesnot includeanattorney,accountantor financialplannerretainedtorepresent theborrowerand

whose

compensationispaiddirectly

by

oratthe directionoftheborrowerregardlessofwhethertheviaticalloaniscompleted.

"Viaticalloan contract", a writtenagreement through

which

aperson

owning

alife

insurance policy or

who

owns

oriscovered underagrouppolicy insuring thelifeofaperson

who

hasa catastrophic, life-threatening orchronicillnessorcondition secures aloan

from

aviaticalloanprovider

by

usingthepolicyas collateral.

The

securedloanisan

amount

less than the face valueofthepolicy,withthedifference

between

theloan principalandthe face valueofthepolicybeing usedtopay,

among

otherthings,theaccruedloaninterest.

Upon

repaymentofthe viaticalloan,theviatical loan provider'scollateral interest inthe policy terminates and the securityinterestisreleasedtotheoriginal policyholder, orhisor her designee. Viatical loans

do

notinclude loanstakenagainstthecash value ofalifeinsurance policyforthepurpose ofpaying

premiums

due.

"Viaticalloan provider", a person, other than aviaticalloan borrower,thatentersinto aviaticalloancontract.

A

viaticalloanproviderdoesnot include:

Chap. 326

(1 a naturalperson

who

entersintonot

more

thanoneloanagreementina calendar

yearforanyvaluelessthantheexpecteddeathbenefit;

(2)afamily

member

orfriend,

who

isnotinthebusinessof providingorobtaining viaticalloans,

who

entersintoaloanagreementforanyvaluelessthantheexpecteddeath benefit;or

(3)afinancingentity.

"Viaticalloan representative", aperson

who

isanauthorizedagentofadulylicensed viaticalloan provider orviaticalloanbrokerand

who

actsorassists inany

manner

in the solicitationofaviaticalloan

on

behalfofsuchviaticalloan provider orviaticalloan broker, asapplicable.

A

viaticalloan representative doesnot include:

(1) an attorney, an accountant, an investment or financialplanner orany person

exercisinga

power

of attorney granted

by

aviaticalloanborrower;

(2) a person

who

is retained to represent a viatical loan borrower and

whose

compensation ispaid

by

orat the discretion ofthe viatical loan borrowerregardless of

whethertheviaticalloan transactioniscompleted;or

(3)acreditunion,tradeunion,not-for-profit entityoran

employer

or associationthat

makes

informationaboutviaticalloans availabletoitsemployeesor

members

unlesssuch informationisdistributedinexchangeforfinancialconsideration.

A

viaticalloan representativeis

deemed

torepresentonlythe viaticalloan provider orviaticalloan broker,asapplicable.

"Viatical settlement broker", a person that,

on

behalf of a viator and for a fee,

commission

orother valuable consideration,offersor attemptstonegotiateviatical settle-ments

between

aviatorand oneor

more

viaticalsettlement providers. Irrespective ofthe

manner

in

which

the viaticalsettlementbrokeris

compensated

aviaticalsettlementbroker

is

deemed

torepresentonlytheviatorand

owes

a fiduciarydutytotheviatortoactaccording tothe viator'sinstructionsandinthebestinterestofthe viator.

A

viaticalsettlementbroker doesnotincludeanattorney,accountantorfinancialplanner retainedtorepresenttheviator

whose

compensationispaiddirectly

by

oratthedirectionofthe viatorregardlessofwhether the viaticalsettlementiscompleted.

"Viatical settlementcontract",a written agreemententeredinto

between

aviatical settlementproviderandaviator.

The

agreementshall establishthetermsunder

which

the viaticalsettlementproviderwillpay compensationoranythingofvalue,

which

compensation

or valueislessthantheexpecteddeath benefitoftheinsurance policy orcertificate, inreturn forthe viator'sassignment,transfer, sale,devise orbequestofthedeath benefit orownership

ofallor aportionoftheinsurance policy orcertificateof insurancetothe viaticalsetdement

provider.

"Viaticalsettlement provider", aperson, other than aviator,

who

enters intoaviatical settlement contract, or

who

obtains financing

from

a financing entity for the purchase, acquisition, transfer or other assignment ofone or

more

viatical settlement contracts, viaticated policies orintereststherein or

who

otherwise sells, assigns, transfers, pledges,

Chap. 326

(1)abank,savingsbank,savings

and

loanassociation,creditunionorother licensed

lendinginstitution

which

takes anassignment ofalifeinsurancepolicyas collateralfora loan;

(2)the issuerofalifeinsurance policyprovidingaccelerated benefits and pursuant tothecontract:

(3)a naturalperson

who

enters intonot

more

thanone agreementinacalendaryear forthetransferoflifeinsurancepolicies forany valuelessthantheexpected deathbenefit: (4)afamily

member

or friend

who

isnotinthebusinessof providingorobtaining viaticalsettlements,

who

entersintoaviaticalsettlementagreementforany valuelessthan theexpected deathbenefit:or

(5) afinancingentity.

"Viaticalsettlement representative", aperson

who

isan authorizedagentofaduly

licensedviaticalsettlementproviderorviaticalsettlement broker,asapplicable,

and

who

acts orassistsinany

manner

inthesolicitationofaviaticalsettlement

on

behalf ofsuchviatical settlementproviderorviaticalsettlement broker.

A

viaticalsettlement representativeshall not include:

(1)anattorney,accountant,investmentor financialplannerorany personexercising a

power

ofattorneygranted

by

aviator:

(2)aperson

who

isretainedtorepresenta viatorand

whose

compensationispaid

by

oratthediscretionofthe viatorregardless of whethertheviaticalsettlement transactionis completed:or

(3)acreditunion, trade union, not-for-profitentityoran

employer

or associationthat

makes

informationaboutviaticalsettlements availabletoitsemployeesor

members,

unless

such informationisdistributedinexchangefor financialconsideration.

A

viaticalsettlement representativeis

deemed

torepresentonlytheviaticalsettlement

providerorviaticalsettlement broker,asapplicable.

"Viaticatedpolicy",alifeinsurance policy orcertificatethathas

been

the subjectof

acompletedviaticalsettlement contract orviaticalloancontract.

"Viator", the

owner

ofalifeinsurance policy ora certificateholderunderagroup

policy insuring thelifeofanindividualwitha catastrophic, life-threatening orchronicillness orcondition

who

entersorseekstoenterintoaviaticalsettlementcontract.

Section 214.(a)

No

person

may

actasaviaticalsettlement orloanprovider, orasa viaticalsettlement or loan broker,withoutfirsthaving obtaineda license

from

the

commis-sioner.

A

viaticalsettlement or loan representative

may

actundertheauthorityofthelicense of theviaticalsettlement or loan provider orviaticalsettlement orloanbroker

which

appoints said representative.

The

appointmentof aviaticalsettlement or loan representative

must

be

pre-scribed foreach licenseor renewal thereofto an insurance agent ofany

company

under

section 163, as determined annually by the

commissioner

of administration under the provisionof section

3B

of chapter7. Licenses

may

be

renewed

fromyeartoyear,on the anniversarydate,

upon payment

oftheannual renewal feeinan

amount

equaltothe fee for renewal ofeach license to an insurance agent ofany

company

under section 163, as determinedannually

by

thecommissionerof administrationundersaidsection3B.Failure topaythe feewithin thetermsprescribedshallresultintheexpirationofthe license.

(b)

The

applicantshallprovidesuchinformationas thecommissioner

may

require

on

forms prescribed

by

thecommissioner.

The commissioner

shall haveauthority,atany

time, to require the applicant to fullydisclose the identity ofall stockholders, partners,

members,

officers and employees.

The commissioner may,

in the exerciseofdiscretion, refusetoissue a licenseinthe

name

ofanyfirm,partnership orcorporationifnotsatisfied thatanyofficer, employee, stockholder,

member,

or partnerthereof,

who may

materially influence theapplicant'sconduct,meetsthestandardsofsections

212

to223,inclusive.

(c) Applicants for licenses and licensees seeking renewal of a license shall be

requiredtodemonstratethattheyhave hadsufficienteducationandtraining tobequalified to actas viatical settlement or loan providers orviatical settlement or loan brokers.

The

commissioner

may

promulgateregulationsregardingthestandardsofeducationandtraining necessarytoobtainand

renew

alicense,andtheprocedureformeetingthose standards.

(d)

A

licenseissuedtoa partnership, corporation, limitedliability

company

orother entityauthorizesall

members,

officersanddesignatedemployeestoactas viaticalsettlement or loan providers, viatical settlement or loan brokers, or viatical settlement or loan representatives,asapplicable,underthe license,andallthosepersons

must

be

named

inthe applicationand any supplementstotheapplication.

(e)

Upon

the filing of an application and the

payment

of the license fee, the commissionershall

make

an investigationofeachapplicantand

may

issuea licenseifthe commissionerfindsthattheapplicant:

(1)hasprovideda detailedplanofoperation;

(2) is suitable,competent andtrustworthy andintends toact in

good

faith in the capacityinvolved

by

the licenseappliedfor;

(3)has a

good

business reputation soas tobequalifiedinthebusinessfor

which

the licenseisappliedfor;

(4)has

met

thestandardsofeducationandtrainingestablishedbythe

commissioner

pursuanttosections

212

to223,inclusive;and

Chap. 326

Section 215.(a)

The commissioner

shallhavetheright tosuspend,revokeor refuse to

renew

the licenseofanyviaticalsettlement orloanproviderorviaticalsettlementorloan

brokerifthe

commissioner

findsthat:

(1)there

was

anymaterialmisrepresentationintheapplicationforthelicense; (2) theholderofthelicensehasbeenguiltyoffraudulent ordishonestpractices,is

subject to a final administrative action or is otherwise

shown

to be untrustworthy or

incompetentto actasaviatical settlement orloanprovideror viaticalsettlement orloan

broker;

(3)theviaticalsettlement orloanproviderdemonstratesa pattern ofunreasonable

payments

toviatorsorborrowers;or

(4)the licenseehas

been

foundguiltyof,orhaspleadedguiltyornolocontendereto,

a felony, or a

misdemeanor

involvingfraud ormoralturpitude;

(5)theviaticalsettlement orloan provider orviaticalsettlement orloanbroker has

enteredinto viaticalsettlement orloancontractsthathavenotbeen approved pursuantto sections

212

to223, inclusive;

(6)theviaticalsettlement orloanproviderorviaticalsettlement orloanbroker has failed tohonorcontractual obligationssetoutin viaticalsettlementorloancontracts;

(7)thelicensee

no

longermeetstherequirementsforinitiallicensure;

(8)theviaticalsettlement orloan provider hasassignedorpledgeda viaticatedpolicy toapersonotherthantoa dulylicensedviaticalsettlement orloanprovideror afinancing entity;or

(9)thelicenseehasviolatedany oftheprovisionsofsections

212

to223, inclusive,

ofthischapter.

(b)Beforethe

commissioner

shall

deny

a license application orrevokeor refuseto

renew

thelicense of aviatical settlement orloan provideror aviaticalsettlement orloan broker, the

commissioner

shall conducta hearing inaccordance with chapter

30A.

The

commissionershallalsohavetherighttosuspenda licensefor

up

to

30

days followingthe issuanceofaceaseanddesistorder

demanding

thelicensee

show

causewithin said

30

days

why

suchlicenseshould notbe revokedornon-renewed.

Section 216.

No

person

may

useanyviaticalsettlement orloan contractin this state orprovideaviatororborrowera disclosure statement

form

unlessithasbeenfiledwithand approved

by

thecommissioner.

Any

viaticalsettlementorloan contract

form

ordisclosure

form

filedwiththe

commissioner

shallbe

deemed

approvedifithasnotbeen disapproved

within

60

days ofthefiling.

The commissioner

shalldisapproveaviaticalsettlement orloan contract

form

if,inthecommissioner'sopinion, the contract or provisionscontainedtherein areunreasonable, contrarytotheinterestsofthe public,orotherwisemisleadingor unfairto the viatororborrower.

Section 217.

Each

viatical settlement or loan provider shall file with the

commissioner

on

or before

March

1 ofeach year an annual statement containing such

informationasthe

commissioner

may

prescribe

by

regulation.

Section 218.(a)

The commissioner

may,

when

thecommissioner

deems

itreasonably necessary to protect the interests of the public,

examine

the business and affairs ofany

licensee or applicantforalicense.

The commissioner

shallhavetheauthoritytoorderany

licensee or applicanttoproduce anyrecords,books,filesorotherinformationreasonably

necessary to ascertain whether or not the licensee or applicant is acting or has acted in violation of the law or otherwise contrary to the interests of the public.

The

expenses

incurredinconductinganyexaminationshallbepaid

by

thelicenseeorapplicant. (b)

Names,

individual identification data and descriptions of the particular catastrophic, life-threateningorchronic illnesses orconditions for all insureds shall be considered private and confidential information and shall not be disclosed

by

the

commissioner,unlessrequired

by

law.

(c) Records of all transactions of viatical settlement or loan contracts shall be maintained

by

the viatical settlement or loan provider and shall be available to the

commissioner

forinspectionduringreasonable business hours.

A

viatical settlement or loan provider shall maintain records of each viatical settlementor loanuntil fiveyearsafterthedeath of the insured.

Section 219. (a)

A

viatical settlement orloan provider, viaticalsettlement orloan broker, orviaticalsettlementorloan representativeshalldiscloseinwritingthefollowing

informationtotheviatororviaticalloanborrower

no

laterthan thetimeofapplication: (1) possible alternatives to viatical settlement orloan contracts forpersons with catastrophic,life-threateningorchronicillnessesor conditions,including,but not limitedto, anyaccelerated benefits offeredundertheviator'sor borrower'slifeinsurancepolicy;

(2)thefact that

some

oralloftheproceedsofthe viaticalsettlement

may

betaxable, andthatassistanceshouldbe sought

from

apersonal tax advisor;

(3) the fact thatthe viatical settlement orloan couldbe subject to the claims of creditors;

(4) the fact that receipt ofaviatical settlement or loan

may

adversely affect the recipient's eligibility for

Medicaid

orother

government

benefits or entitlements, and that adviceshouldbeobtained

from

theappropriate agencies;

(5) theviator'sorborrower'sright torescindaviatical settlement or loan contract within 15 days ofthe receiptofthe viatical settlement orloan proceeds by the viatoror

borrower,asprovidedinsection 220;

(6)the procedureforcontactswiththe insuredfor the purposeofdeterminingthe healthstatusoftheinsuredafterthe viaticalsettlement orloanhas occurred,andthe fact that healthmonitoringcontactswillbelimitedtoonce everythree

months

forinsureds withalife expectancy of

more

thanoneyearandto

no

more

thanoneper

month

forinsureds withalife expectancy ofoneyear orless;

(7) for viatical settlements, that the funds will be sent to the viatorwithin

two

business days after the viatical settlement provider has received the insurer's or group

administrator's

acknowledgment

thatownershipofthepolicy orinterest in the certificatehas

Chap. 326

contract.Forviaticalloans,thatthefundswillbeavailabletobe

drawn on

atthe borrower's request within

two

businessdaysaftertheviaticalloanproviderhas receivedtheinsurer'sor

groupadministrator's

acknowledgment

verifyingthattheabsoluteassignmentandbeneficiary

ofthepolicyorinterest inthecertificate

have been changed

pursuanttotheviatical loan contract;and

(8)entering into aviatical settlement orloan contract

may

cause otherrights or benefits,including, but not limitedto,conversionrightsand waiver of

premium

benefits

which

may

existunderthepolicy orcertificate,tobeforfeited

by

the viatororviaticalloan

borrower,

and

assistanceshouldbe sought

from

a financialadviser.

(b)

A

viaticalsettlementproviderorviaticalloan providershalldisclose the following

informationtothe viatororviaticalloanborroweratleast

two

businessdayspriortothe date theviaticalsettlement orloan contractissigned

by

allparties:

(1)

The

affiliation,ifany,

between

theviaticalsettlementorloan provider andthe issuerof aninsurance policy

which

isthesubjectoftheviaticalsettlement or loan.

(2)Ifaninsurance policy

which

may

bethesubjectoftheviaticalsettlement orloan has

been

issuedasajointpolicy or involvesfamilyridersorany coverage ofalifeotherthan theinsuredunderthepolicytobeviaticated,the viatororviatical loanborrower

must

be informed ofthepossiblelossofcoverage

on

theotherlives

and

be advisedtoconsultwith

the

company

issuing thepolicyforadvice.

(3)

The

dollar

amount

of the current death benefit payable under the policy or certificate.

The

viaticalsettlement or loanprovidershallalsodisclose theavailabilityofany

additional guaranteed insurance benefits,

and

the viatical settlement or loan provider's interestinthosebenefits.

Section 220. (a)

A

viatical settlement or loan provider entering into a viatical settlement or loan contractwitha viator orviaticalloan borrowershallfirstobtain:

(1)ifthe viator orviaticalloanborroweristhe insured, a writtenstatement

from

a licensed attending physician thatthe viatororborrowerisof

sound

mind

and under

no

constraintor

undue

influencetoenterintothe contract;

(2)a witnessed

document

in

which

the viatororviaticalloanborrower consentsto theviatical settlement or loancontract,

acknowledges

thattheinsuredhasa catastrophic, life-threatening orchronicillnessor condition, representsthatthe viatororborrower hasa

fulland complete understanding oftheviaticalsettlement orloancontract, thatthe viatoror

borrower hasafulland complete understanding ofthe benefitsofthelifeinsurancepolicy, andthatthe viator orborrower hasentered theviaticalsettlement orloan contractfreelyand voluntarily;and

(3) a

document

in

which

theinsuredconsentstothe releaseofhisorhermedical

recordstoaviaticalsettlement or loanprovideror broker.

(b)All medical informationsolicitedorobtained

by

anylicenseeoranyfinancing entity shallbesubjecttotheapplicableprovisionof lawrelating toconfidentialityofmedical

information.

The

insured shall be offered the choice of (1) requiring that the insured's written,informed consent be obtainedineachinstanceofdisclosureofpatientidentifying

information, or(2)signing a generalconsent

document

for the releaseofmedicalrecordsand patientidentifyinginformation,which

would

remainineffectforany subsequenttransactions involving thepolicy.Iftheinsuredelectstheoptioninclause(2),theinsuredshallreceive noticebyfirstclassmailofanyfurtherdisclosureofpatientidentifyinginformation.Itisthe responsibilityoftheparty divulgingthe patientidentifyinginformationtonotify theinsured of the disclosure. "Patient identifying information"

means

an insured's

name,

address, telephone number, facsimile number, electronic mail address, photograph or likeness, employer,

employment

status, social securitynumber, orany otherinformation

which

is

likely to leadto the identification ofthe insured. Patient identifying information

may

be

disclosed to purchasers ofor investors in apolicy after they have signed a contract or

agreementtopurchaseapolicy.

Such

purchasers or investorsshallbe

bound by

section220. (c)Allviaticalsettlementandloan contractsenteredintointhe

commonwealth

shall provide the viator or viatical loan borrower with an unconditional right to rescind the contractfor15days

from

the receiptofthe viaticalsettlement orloanproceeds.Iftheinsured diesduringthe recission period, theviatical settlement or loan contractshall be

deemed

to have beenrescinded, subjecttorepaymenttotheviaticalsettlement orloan providerof any viaticalsettlement orloan proceeds,ifrepaid within

90

days

from

thedate of death ofthe insured.

(d)Immediately

upon

receipt

from

the viatororviaticalloanborrower of

documents

to effectthe transferorassignment oftheinsurancepolicy, theviatical settlement orloan providershallpaytheproceeds ofthesettlementorloantoan escrowortrustaccountina stateor federallycharteredfinancial institution,pending

acknowledgment

ofthe transferor

assignment

by

the issuerofthe policy. Immediately

upon

receipt ofconfirmation bythe viaticalsettlementprovider orviaticalloan providerthattheinsurer has

acknowledged

the transferorassignment ofthe policy, the trusteeorescrowagentshallberequiredtotransfer totheviator orviaticalloanborrower:(1)alloftheproceedsdueiftobe

made

ina

lump

sum

payment;or(2)thefirstinstallmentifproceedsdueare tobe

made

ininstallment

payments

pursuanttotheviaticalsettlement or loancontract.

(e)Failure to tender consideration tothe viatoror viatical loan borrower for the viatical settlement or loan contract

by

the date disclosed pursuant to paragraph (7) of

subsection(a)ofsection

219

rendersthe viaticalsettlement orloan contract voidable

by

the viatororborrowerforlackofconsiderationuntilsuch timeasconsiderationistenderedto and accepted

by

the viatororborrower.

(f)Contactsforthepurposeofdeterminingthe health statusofthe insured

by

the viaticalsettlement or loan provider orviatical settlement orloanbrokerafterthe viatical settlement orloanhasoccurredshallbelimitedtoonce everythree

months

forinsureds with alifeexpectancyof

more

thanoneyear,andto

no

more

thanoneper

month

forinsuredswith alifeexpectancy of one year orless.

The

limitations set forth in this subsectionshall not

apply to any contacts with an insured under aviaticated policy for reasons other than

Chap. 326

(g)Viatical settlement orloan providers, viatical settlement or loan brokers, and viatical settlementorloanrepresentatives areprohibited

from

paying any

commission

or finder'sfee toany personthatisprovidingorhaspreviouslyprovidedcareor servicestothe insuredunder an insurancepolicy

which

istobeviaticated,including, but not limitedto,any medicalormentalhealth provider,socialservicesprovider,attorney,accountant, financial adviser or planner, investment adviser or planner, or any other person

who

has a

demonstrableconflictofinterestincollectingafinder's fee. Section 221.

The commissioner

shallhavetheauthorityto:

(a)promulgateregulationsimplementingsections

212

to223, inclusive;

(b)establishstandardsforevaluating thereasonablenessof

payments

underviatical settlement orloancontracts,including authoritytoregulatediscountratesusedtodetermine

the

amount

paidin

exchange

forassignments,transfer, sale,devise, orbequest ofa benefit

underalifeinsurance policy;

(c) establish appropriate licensing requirements, fees,

and

standards for viatical settlementandloan providers, viaticalsettlement

and

loanbrokers,andviaticalsettlement

andloan representatives;

(d) require a

bond

or other

mechanism

for financial accountability of viatical settlement orloanproviders

and

establishthe

amount

thereof; and

(e)adoptrulesgoverningthe relationshipandresponsibilitiesofinsurersandviatical settlementandloan providersandviaticalsettlementandloanbrokersduringthe viatication

ofalifeinsurance policy orcertificate.

Section 222.

A

violationofsections

212

to223, inclusive, shallbe considered an

unfair trade practiceunderchapter176D,subjecttothe penaltiescontainedtherein. Section 223.

Within

the office of

consumer

affairs and business regulation, the director of

consumer

affairs and business regulation shall establish a procedure for consumers involved in the viatical settlement

and

loan process to report problems

and

complaints aboutviaticalsettlementorloanproviders orviaticalsettlementorloanbrokers.

Upon

inquiry,

consumers

shallalso

be

abletoobtaininformationas towhetheracomplaint hasbeen lodgedagainsta particularviaticalsettlement orloan providerorviaticalsettlement orloan broker.

The

directorshallshareinformation about

consumer

complaints withthe

commissionerinorder for the

commissioner

toinvestigate possiblemisconduct

by

licensees

andenforce sections

212

to223,inclusive.

SECTION

2.Notwithstandingthisactoranygeneral or speciallawtothe contrary,

thesecuritiesdivisionintheofficeofthestatesecretaryshallhavethe authoritytoregulate viaticalsettlements assecuritiespursuanttochapter1

10A

oftheGeneralLaws.

SECTION

3.Thisact shalltakeeffect

on

March

1,2001.

Approved

November

30,2000.