Haw. Rev. Stat. § 431C-2
As used in this chapter, unless the content otherwise requires:
"Advertisement" means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet, or similar communications media, including film strips, motion pictures, and videos, that is published, disseminated, circulated, or placed before the public, directly or indirectly, for the purpose of creating an interest in or inducing a person to purchase or sell, assign, devise, bequest, or transfer the death benefit or ownership of a policy or an interest in a policy pursuant to a life settlement contract.
"Broker" means a person who, on behalf of an owner and for a fee, commission, or other valuable consideration, offers or attempts to negotiate life settlement contracts between an owner and providers, represents only the owner, and owes a fiduciary duty to the owner to act according to the owner's instructions, and in the best interest of the owner, notwithstanding the manner in which the broker is compensated. "Broker" does not include an attorney, certified public accountant, or financial planner retained in the type of practice customarily performed in their professional capacity to represent the owner, whose compensation is not paid directly or indirectly by the provider or any other person, except the owner.
"Business of life settlements" means an activity involved in but not limited to offering to enter into the soliciting, negotiating, procuring, effectuating, monitoring, or tracking of life settlement contracts.
"Certificate" means a certificate issued pursuant to a group policy.
"Chronically ill" means:
(3) Having a level of disability similar to that described in paragraph (1) as determined by the United States Secretary of Health and Human Services.
"Commissioner" means the insurance commissioner.
"Financing entity" means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a life settlement contract, but:
(2) Who has an agreement in writing with one or more providers to finance the acquisition of life settlement contracts.
The term shall not include a non-accredited investor or purchaser.
"Financing transaction" means a transaction in which a licensed provider obtains financing from a financing entity including, without limitation, any secured or unsecured financing, any securitization transaction, or any securities offering that is either registered or exempt from registration under federal and state securities law.
"Insured" means the person covered under the policy being considered for sale in a life settlement contract.
"Life expectancy" means the arithmetic mean of the number of months the insured under the policy to be settled can be expected to live as determined by a life expectancy company considering medical records and appropriate experiential data.
"Life insurance producer" means any person licensed in this State as a resident or nonresident insurance producer who has received qualification for life insurance pursuant to article 9A of chapter 431.
"Life settlement contract" means:
(a)
(iii) The owner agrees on the date of the premium finance loan to sell the policy or any portion of its death benefit on any date following the issuance of the policy.
"Life settlement contract" does not include:
(b)
(5) An agreement where all the parties:
(7) A bona fide business succession planning arrangement:
(9) Any other contract, transaction, or arrangement that is a life settlement contract and that the commissioner determines is not of the type intended to be regulated by this chapter.
"Net death benefit" means the amount of the policy or certificate to be settled less any outstanding debts or liens.
"Owner" means the owner of a policy or a certificate holder under a group policy, with or without a terminal illness, who enters or seeks to enter into a life settlement contract, but shall not be limited to an owner of a policy or a certificate holder under a group policy that insures the life of an individual with a terminal or chronic illness or condition, except where specifically addressed.
"Owner" does not include:
(5) A related provider trust.
"Patient identifying information" means an insured's address, telephone number, facsimile number, electronic mail address, photograph or likeness, employer, employment status, social security number, or any other information that is likely to lead to the identification of the insured.
"Person" means any natural person or legal entity, including but not limited to a partnership, limited liability company, association, trust, or corporation.
"Policy" means an individual or group policy, certificate, contract, or arrangement of life insurance owned by a resident of this State, regardless of whether delivered or issued for delivery in this State.
"Premium finance loan" means a loan made primarily for the purposes of making premium payments on a policy, which loan is secured by an interest in such policy.
"Provider" means a person, other than an owner, who enters into or effectuates a life settlement contract with an owner. The term does not include:
(11) An accredited investor or qualified institutional buyer as defined respectively in Rule 501 of Regulation D and Rule 144A of the Securities Act of 1933, as amended, who purchases a life settlement contract from a provider.
"Purchased policy" means a policy or certificate that has been acquired by a provider pursuant to a life settlement contract.
"Purchaser" means a person who pays compensation or anything of value as consideration for a beneficial interest in a trust that is vested with, or for the assignment, transfer, or sale of, an ownership or other interest in a policy or a certificate that has been the subject of a life settlement contract.
"Related provider trust" means a titling trust or other trust established by a licensed provider or a financing entity for the sole purpose of holding the ownership or beneficial interest in purchased policies in connection with a financing transaction, that includes a written agreement with the licensed provider under which the licensed provider is responsible for ensuring compliance with all statutory and regulatory requirements and under which the trust agrees to make all records and files relating to life settlement transactions available to the insurance division as if those records and files were maintained directly by the licensed provider.
"Settled policy" means a policy or certificate that has been acquired by a provider pursuant to a life settlement contract.
"Special purpose entity" means a corporation, partnership, trust, limited liability company, or other legal entity formed solely to provide either directly or indirectly access to institutional capital markets for a financing entity or provider in connection with a transaction in which the securities in the special purpose entity:
(2) Pay a fixed rate of return commensurate with established asset-backed institutional capital markets.
"Stranger-originated life insurance" means a practice or plan to initiate a policy for the benefit of a third party investor who, at the time of policy origination, has no insurable interest in the insured, and includes:
(2) Trusts created to give the appearance of insurable interest and used to initiate policies for investors.
"Stranger-originated life insurance" does not include those practices set forth in subsection (b) of the definition of "life settlement contract".
"Terminally ill" means having an illness or sickness that can reasonably be expected to result in death in twenty-four months or less.
[L 2012, c 256, pt of §1]