                                 CODE OF VIRGINIA

ADVERTISING FOR VIATICAL SETTLEMENTS (§ 38.2-6010)

A. This section shall apply to any advertising of viatical settlement contracts,
or related products or services intended for dissemination in this Commonwealth,
including Internet advertising viewed by persons located in this Commonwealth.
Where disclosure requirements are established pursuant to federal regulation,
this section shall be interpreted so as to minimize or eliminate conflict with
federal regulation wherever possible.

B. Each licensee under this chapter shall establish and at all times maintain a
system of control over the content, form and method of dissemination of all
advertisements of its contracts, products, and services. All advertisements,
regardless of by whom written, created, designed, or presented, shall be the
responsibility of the licensee, as well as the individual who created or
presented the advertisement. A system of control shall include regular routine
notification, at least once a year, to agents and others authorized by the
licensee who disseminates advertisements of the requirements and procedures for
approval prior to the use of any advertisements not furnished by the licensee.

C. Advertisements shall be truthful and not misleading in fact or by
implication. The form and content of an advertisement of a viatical settlement
contract shall be sufficiently complete and clear so as to avoid deception. It
shall not have the capacity or tendency to mislead or deceive. Whether an
advertisement has the capacity or tendency to mislead or deceive shall be
determined by the Commission from the overall impression that the advertisement
may be reasonably expected to create upon a person of average education or
intelligence within the segment of the public to which it is directed.

D. The information required to be disclosed under this section shall not be
minimized, rendered obscure, or presented in an ambiguous fashion or
intermingled with the text of the advertisement so as to be confusing or
misleading.

   1. An advertisement shall not omit material information or use words, phrases,
   statements, references, or illustrations if the omission or use has the
   capacity, tendency, or effect of misleading or deceiving viators, as to the
   nature or extent of any benefit, loss covered, premium payable, or state or
   federal tax consequence. The fact that the viatical settlement contract
   offered is made available for inspection prior to consummation of the sale, or
   an offer is made to refund the payment if the viator is not satisfied or that
   the viatical settlement contract includes a &#8220;free look&#8221; period
   that satisfies or exceeds legal requirements, does not remedy misleading
   statements.

   2. An advertisement shall not use the name or title of a life insurance
   company or a life insurance policy unless the advertisement has been approved
   by the insurer.

   3. An advertisement shall not state or imply that interest charged on an
   accelerated death benefit or a policy loan is unfair, inequitable, or in any
   manner an incorrect or improper practice.

   4. The words &#8220;free,&#8221; &#8220;no cost,&#8221; &#8220;without
   cost,&#8221; &#8220;no additional cost,&#8221; &#8220;at no extra cost,&#8221;
   or words of similar import shall not be used with respect to any benefit or
   service unless true. An advertisement may specify the charge for a benefit or
   a service or may state that a charge is included in the payment or use other
   appropriate language.

   5. Testimonials, appraisals, or analysis used in advertisements must be
   genuine; represent the current opinion of the author; be applicable to the
   viatical settlement contract, product, or service advertised, if any; and be
   accurately reproduced with sufficient completeness to avoid misleading or
   deceiving prospective viators as to the nature or scope of the testimonials,
   appraisal, analysis, or endorsement. In using testimonials, appraisals, or
   analysis, the viatical settlement licensee makes as its own all the statements
   contained therein, and the statements are subject to all the provisions of
   this section.
   				a. If the individual making a testimonial, appraisal, analysis, or an
   endorsement has a financial interest in the viatical settlement provider,
   viatical settlement broker, or related entity as a stockholder, director,
   officer, employee, or otherwise, or receives any benefit directly or
   indirectly other than required union scale wages, that fact shall be
   prominently disclosed in the advertisement.
   				b. An advertisement shall not state or imply that a viatical settlement
   contract benefit or service has been approved or endorsed by a group of
   individuals, society, association, or other organization unless that is the
   fact and unless any relationship between an organization and the viatical
   settlement licensee is disclosed. If the entity making the endorsement or
   testimonial is owned, controlled, or managed by the viatical settlement
   licensee, or receives any payment or other consideration from the viatical
   settlement licensee for making an endorsement or testimonial, that fact shall
   be disclosed in the advertisement.
   				c. When an endorsement refers to benefits received under a viatical
   settlement contract all pertinent information shall be retained for a period
   of five years after its use.

E. An advertisement shall not contain statistical information unless it
accurately reflects recent and relevant facts. The source of all statistics used
in an advertisement shall be identified.

F. An advertisement shall not disparage insurers, viatical settlement providers,
viatical settlement brokers, viatical settlement investment agents, insurance
producers, policies, services, or methods of marketing.

G. The name of the viatical settlement licensee shall be clearly identified in
all advertisements about the licensee or its viatical settlement contracts,
products, or services, and if any specific viatical settlement contract is
advertised, the viatical settlement contract shall be identified either by form
number or some other appropriate description. If an application is part of the
advertisement, the name of the viatical settlement provider shall be shown on
the application.

H. An advertisement shall not use a trade name, group designation, name of the
parent company of a viatical settlement licensee, name of a particular division
of the viatical settlement licensee, service mark, slogan, symbol, or other
device or reference without disclosing the name of the viatical settlement
licensee, if the advertisement would have the capacity or tendency to mislead or
deceive as to the true identity of the viatical settlement licensee, or to
create the impression that a company other than the viatical settlement licensee
would have any responsibility for the financial obligation under a viatical
settlement contract.

I. An advertisement shall not use any combination of words, symbols, or physical
materials that by their content, phraseology, shape, color, or other
characteristics are so similar to a combination of words, symbols, or physical
materials used by a government program or agency or otherwise appear to be of
such a nature that they tend to mislead prospective viators into believing that
the solicitation is in some manner connected with a government program or
agency.

J. An advertisement may state that a viatical settlement licensee is licensed in
the state where the advertisement appears, provided it does not exaggerate that
fact or suggest or imply that a competing viatical settlement licensee may not
be so licensed. The advertisement may ask the audience to consult the
licensee&#8217;s website or contact the Bureau of Insurance to find out if this
Commonwealth requires licensing and, if so, whether the viatical settlement
provider or viatical settlement broker is licensed.

K. An advertisement shall not create the impression that the viatical settlement
provider, its financial condition or status, the payment of its claims or the
merits, desirability, or advisability of its viatical settlement contracts are
recommended or endorsed by any government entity.

L. The name of the actual licensee shall be stated in all of its advertisements.
An advertisement shall not use a trade name, any group designation, name of any
affiliate, or controlling entity of the licensee, service mark, slogan, symbol,
or other device in a manner that would have the capacity or tendency to mislead
or deceive as to the true identity of the actual licensee or create the false
impression that an affiliate or controlling entity would have any responsibility
for the financial obligation of the licensee.

M. An advertisement shall not directly or indirectly create the impression that
any division or agency of the state or of the U.S. government endorses,
approves, or favors:

   1. Any viatical settlement licensee or its business practices or methods of
   operation;

   2. The merits, desirability, or advisability of any viatical settlement
   contract;

   3. Any viatical settlement contract; or

   4. Any life insurance policy or life insurance company.

N. If the advertiser emphasizes the speed with which the viatication will occur,
the advertising must disclose the average time frame from completed application
to the date of offer and from acceptance of the offer to receipt of the funds by
the viator.

O. If the advertising emphasizes the dollar amounts available to viators, the
advertising shall disclose the average purchase price as a percent of face value
obtained by viators contracting with the licensee during the past six months.

HISTORY: 2003, c. 717.