Section 10-7-702 - DefinitionsAs used in this part 7, unless the context otherwise requires:
(1) "Business entity" means a legal entity, including a joint venture, partnership, corporation, limited liability company, or business trust.(2) "Person" means any natural person, business entity, association, or trust.(3) "Policy" means an individual or group policy, group certificate, contract, or arrangement of life insurance affecting the rights of a resident of this state or bearing a reasonable relation to this state, regardless of whether delivered or issued for delivery in this state.(4) "Settlor" means a person who executes a trust instrument, including a person for whom a fiduciary or agent is acting.(5) "Stranger originated life insurance" means an act, practice, or arrangement to initiate a life insurance policy for the benefit of a third-party investor who, at the time of policy origination, has no insurable interest in the insured. Stranger originated life insurance practices include cases in which life insurance is purchased with resources or guarantees from or through a person or entity who, at the time of inception, could not lawfully initiate the policy themselves and where, at the time of inception, there is an arrangement or agreement, whether verbal or written, to directly or indirectly transfer the ownership of the policy or the policy benefits to a third party. Trusts that are created to give the appearance of insurable interest and are used to initiate policies for investors violate insurable interest laws and the prohibition on wagering on life. "Stranger originated life insurance" does not include lawful viatical settlement contracts as permitted by part 6 of this article, provided that such contracts are not for the purpose of evading regulation under this article.L. 2011: Entire part added, (SB 11-182), ch. 227, p. 972, §1, effective May 27.