                                 CODE OF VIRGINIA

PROHIBITED PRACTICES (§ 38.2-6009)

A. It is a violation of this chapter for any person to enter into a viatical
settlement contract within a two-year period commencing with the date of
issuance of the insurance policy or certificate unless the viator certifies to
the viatical settlement provider that one or more of the following conditions
have been met within the two-year period:

   1. The policy was issued upon the viator&#8217;s exercise of conversion rights
   arising out of a group or individual policy, provided the total of the time
   covered under the conversion policy plus the time covered under the prior
   policy is at least 24 months. The time covered under a group policy shall be
   calculated without regard to any change in insurance carriers, provided the
   coverage has been continuous and under the same group sponsorship;

   2. The viator submits independent evidence to the viatical settlement provider
   that one or more of the following conditions have been met within the two-year
   period:
   				a. The insured is terminally or chronically ill, or
   				b. The viator or insured disposes of his ownership interests in a closely
   held corporation pursuant to terms of a buyout or other similar agreement in
   effect at the time the insurance policy was initially issued.

B. Copies of the certifications and independent evidence required by this
subsection and documents required by subsection A of &#xA7; 38.2-6008 shall be
submitted to the insurer when the viatical settlement provider submits a request
to the insurer for verification of coverage. The copies shall be accompanied by
a letter of attestation from the viatical settlement provider that the copies
are true and correct copies of the documents received by the viatical settlement
provider.

HISTORY: 2003, c. 717.