1. A viatical settlement entered into in this state must reserve to the viator an unconditional right to rescind the settlement within the rescission period. Rescission, if exercised by the viator, is effective only if the viator:

(a) Gives notice of the rescission to the provider or broker of viatical settlements; and

(b) Repays to the provider of viatical settlements all proceeds and any premiums, loans and loan interest paid on account of the viatical settlement or on behalf of the provider of viatical settlements,

within the rescission period.

2. If the insured dies during the rescission period, the settlement is deemed rescinded and all proceeds and any premiums, loans and loan interest paid on account of the viatical settlement or on behalf of the provider of viatical settlements must be repaid to the provider of viatical settlements within 60 days after the death of the insured.

3. In the event of a rescission, if the provider of viatical settlements has paid commissions or other compensation to a broker of viatical settlements in connection with the rescinded transaction, the broker of viatical settlements shall refund all such commissions and compensation to the provider of viatical settlements within 5 business days following receipt of written demand from the provider of viatical settlements. The demand must be accompanied by:

(a) The viator’s notice of rescission, if the rescission was exercised by the viator; or

(b) Notice of the death of the insured, if the rescission was due to the death of the insured within the rescission period.

4. A purchaser of viatical settlements has the right to rescind an agreement to purchase a viatical settlement within 3 business days after the purchaser of viatical settlements receives the disclosures set forth in NRS 688C.262 and 688C.264.

(Added to NRS by 2001, 2173; A 2009, 1800)