26.1-33.4-05. Reporting requirements and privacy

26.1-33.4-05. Reporting requirements and privacy

1. For any policy settled within five years of policy issuance, each provider shall file with

the commissioner before March first of each year an annual statement containing such

information as the commissioner may prescribe by regulation. In addition to any other

requirements, the annual statement must specify the total number, aggregate face

amount, and life settlement proceeds of policies settled during the immediately

preceding calendar year, together with a breakdown of the information by policy issue

year. The annual statement also must include the names of the insurance companies

whose policies have been settled and the brokers that have settled said policies.

a. Such information must be limited to only those transactions where the insured is

a resident of this state and may not include individual transaction data regarding

the business of life settlements or information that there is a reasonable basis to

believe could be used to identify the owner or the insured.

b. Every provider that willfully fails to file an annual statement as required in this

section, or willfully fails to reply within thirty days to a written inquiry by the

commissioner in connection therewith, shall, in addition to other penalties

provided by this chapter, be subject, upon due notice and opportunity to be heard,

to a penalty of up to two hundred fifty dollars per day of delay, not to exceed

twenty-five thousand dollars in the aggregate, for each such failure.

2. Except as otherwise allowed or required by law, a provider, broker, insurance

company, insurance producer, information bureau, rating agency or company, or any

other person with actual knowledge of an insured's identity, may not disclose the

identity of an insured or information that there is a reasonable basis to believe could

be used to identify the insured or the insured's financial or medical information to any

other person unless the disclosure:

a. Is necessary to effect a life settlement contract between the owner and a provider

and the owner and insured have provided prior written consent to the disclosure;

b. Is necessary to effectuate the sale of life settlement contracts, or interests

therein, as investments, provided the sale is conducted in accordance with

applicable state and federal securities law, and provided further that the owner

and the insured have both provided prior written consent to the disclosure;

c. Is provided in response to an investigation or examination by the commissioner or

any other governmental officer or agency or pursuant to the requirements of

section 26.1-33.4-12;

d. Is a term or condition to the transfer of a policy by one provider to another

provider, in which case the receiving provider shall comply with the confidentiality

requirements of subsection 2 of section 26.1-33.4-05;

e. Is necessary to allow the provider or broker or its authorized representative to

make contacts for the purpose of determining health status. For the purposes of

this section, the term "authorized representative" does not include any person

that has or may have any financial interest in the settlement contract other than a

provider, licensed broker, financing entity, related provider trust, or special

purpose entity; further, a provider or broker shall require its authorized

representative to agree in writing to adhere to the privacy provisions of this

chapter; or

f. Is required to purchase stop-loss coverage.

3. Nonpublic personal information solicited or obtained in connection with a proposed or

actual life settlement contract is subject to the provisions applicable to financial

institutions under the federal Gramm-Leach-Bliley Act [Pub. L. 106-102] and all other

state and federal laws relating to confidentiality of nonpublic personal information.