Mich. Comp. Laws Ann. § 550.524 - Documents to be obtained by provider; right to avoid or rescind contract

Documents to be obtained by provider; right to avoid or rescind contract

A “viatical settlement contract” arises when a patient with a terminal illness, termed a “viator”, transfers their insurance policy to their provider for an amount less than the anticipated policy benefit amount. Michigan permits such contracts, but requires providers to obtain (1) a physician’s written statement that the viator is not under undue influence and (2) a document signed by the viator declaring that they consent, they have a terminal illness, they fully understand the settlement contract, and they consent to release their medical records. Providers must keep confidential the medical records they obtain pursuant to viatical settlement contracts.

All viatical settlement contracts must contain a provision that permits the viator to void the contract within the lesser of 30 days of signing the contract or 15 days of receiving payment from the provider. If a viator voids the contract pursuant to this clause, the provider must notify the insurer within 30 days.