31A-36-110. Payment and document requirements.
(1) (a) A life settlement provider shall instruct the owner to send the executed documents
required to effect the change in ownership or assignment or change of beneficiary of the affected
policy to a designated independent escrow agent.
(b) Within three business days after the day on which the escrow agent receives the
documents, or within three business days after the day on which the life settlement provider
receives the documents if by mistake they are sent directly to the life settlement provider, the life
settlement provider shall deposit the proceeds of the life settlement into an escrow or trust
account of the escrow agent in a federally insured depository institution.
(2) (a) Upon completion of the requirements of Subsection (1), the escrow agent shall
deliver the original documents executed by the owner to:
(i) the life settlement provider; or
(ii) a related provider trust or other designated representative of the life settlement
provider.
(b) Upon the life settlement provider's receipt from the insurer of an acknowledgment of
the change in ownership or assignment or change of beneficiary of the affected policy, the life
settlement provider shall instruct the escrow agent to pay the proceeds of the life settlement to
the owner.
(3) Payment to the owner must be made within three business days after the day on
which the life settlement provider receives the acknowledgment from the insurer. Failure to
make the payment within that time makes the life settlement voidable by the owner for lack of
consideration until payment is tendered to and accepted by the owner.
Amended by Chapter 355, 2009 General Session
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Last revised: Thursday, May 28, 2009