Except as hereinafter provided, if a viatical settlement contract is entered into within the 2-year period commencing with the date of issuance of the insurance policy or certificate to be acquired, the viatical settlement contract is void and unenforceable by either party. Notwithstanding this limitation, such a viatical settlement contract is not void and unenforceable if:
(1) The policy was issued upon the owner’s exercise of conversion rights arising out of a group or term policy;
(2) The owner of the policy is a charitable organization exempt from taxation under 26 U.S.C. s. 501(c)(3);
(3) The owner of the policy is not a natural person;
(4) The viatical settlement contract was entered into before July 1, 2000;
(5) The viator certifies by producing independent evidence to the viatical settlement provider that one or more of the following conditions have been met within the 2-year period: (a)1. The viator or insured is diagnosed with an illness or condition that is either:
a. Catastrophic or life threatening; or
b. Requires a course of treatment for a period of at least 3 years of long-term care or home health care; and
2. The condition was not known to the insured at the time the life insurance contract was entered into.
(b) The viator’s spouse dies;
(c) The viator divorces his or her spouse;
(d) The viator retires from full-time employment;
(e) The viator becomes physically or mentally disabled and a physician determines that the disability prevents the viator from maintaining full-time employment;
(f) The owner of the policy was the insured’s employer at the time the policy or certificate was issued and the employment relationship terminated;
(g) A final order, judgment, or decree is entered by a court of competent jurisdiction, on the application of a creditor of the viator, adjudicating the viator bankrupt or insolvent, or approving a petition seeking reorganization of the viator or appointing a receiver, trustee, or liquidator to all or a substantial part of the viator’s assets; or
(h) The viator experiences a significant decrease in income which is unexpected by the viator and which impairs his or her reasonable ability to pay the policy premium.
If the viatical settlement provider submits to the insurer a copy of the viator’s or owner’s certification described above, then the provider submits a request to the insurer to effect the transfer of the policy or certificate to the viatical settlement provider, the viatical settlement agreement shall not be void or unenforceable by operation of this section. The insurer shall timely respond to such request. Nothing in this section shall prohibit an insurer from exercising its right during the contestability period to contest the validity of any policy on grounds of fraud.