The life settlement provider shall instruct the owner to send the executed documents required to effect the change in ownership, assignment, or change in beneficiary directly to the independent escrow agent. Within three (3) business days after the date the escrow agent receives the document, or from the date the life settlement provider receives the documents, if the owner erroneously sends the documents directly to the provider, the life settlement provider shall pay the proceeds due to the owner to an escrow or trust account maintained in a state or federally chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Upon payment of the settlement proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment, or change in beneficiary forms to the life settlement provider or related provider trust. Upon the escrow agent’s receipt of the acknowledgment of the properly completed transfer of ownership, assignment, or designation of beneficiary from the insurance company, the escrow agent shall pay the settlement proceeds to the owner.
Effective: July 15, 2008

Terms Used In Kentucky Statutes 304.15-718

  • agent: includes managing general agent unless the context requires otherwise. See Kentucky Statutes 304.9-085
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Federal: refers to the United States. See Kentucky Statutes 446.010
  • Owner: when applied to any animal, means any person having a property interest in such animal. See Kentucky Statutes 446.010
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
  • Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC

History: Amended 2008 Ky. Acts ch. 32, sec. 22, effective July 15, 2008. — Amended
2005 Ky. Acts ch. 58, sec. 13, effective June 20, 2005. — Created 2000 Ky. Acts ch.
472, sec. 7, effective July 14, 2000.

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