Submission by viator of certain documents to escrow agent; duties of escrow agent; payment of viator

1. A provider of viatical settlements shall instruct the viator 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. Within 3 business days after the date the escrow agent receives the documents, or within 3 business days after the provider receives the documents if by mistake they are sent directly to the provider, the escrow agent shall deposit the proceeds of the settlement into an escrow or trust account maintained in a regulated financial institution whose deposits are insured by the Federal Deposit Insurance Corporation. 2. Upon deposit of the proceeds in that account, the escrow agent shall deliver to the provider the original documents executed by the viator. Upon the 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 provider shall instruct the escrow agent to pay the proceeds of the settlement to the viator. 3. Payment to the viator must be made within 3 business days after the date the provider received the acknowledgment from the insurer. Failure to make the payment within that time makes the viatical settlement voidable by the viator for lack of consideration until payment is tendered to and accepted by the viator. Payment to the viator shall be deemed to have been made as of the date that the escrow agent: (a) Releases money for a wire transfer to the viator; or (b) Deposits a check for the amount of the proceeds with the United States Postal Service or with a commercially reasonable delivery service.