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The Life Settlement Agreement is utilized when a life insurance policy owner wishes to sell their policy to a third party for immediate liquidity. This transaction type has gained prominence in Canada's secondary market for life insurance policies, though it must navigate complex regulatory requirements that vary by province. The agreement comprehensively documents the sale terms, including the purchase price calculation, ongoing premium payment responsibilities, medical information sharing protocols, and compliance with provincial insurance regulations and federal privacy laws. A Life Settlement Agreement is particularly crucial in ensuring all parties understand their rights and obligations while maintaining compliance with Canadian regulatory requirements, including provincial insurance commissions' oversight and PIPEDA privacy regulations. The document serves as the primary record of the transaction and ongoing obligations between the policy owner, purchaser, and other involved parties.

1. Parties: Identification of the policy owner (seller), the purchaser, and any intermediaries or brokers involved in the transaction

2. Background: Context of the agreement, including brief description of the life insurance policy and purpose of the settlement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Purchase and Sale: Core transaction terms including purchase price, payment terms, and transfer of rights

5. Conditions Precedent: Conditions that must be satisfied before the settlement becomes effective

6. Representations and Warranties: Statements of fact and guarantees by both parties regarding their capacity, authority, and the policy

7. Seller's Obligations: Ongoing obligations of the policy owner, including cooperation with medical information requests

8. Purchaser's Obligations: Ongoing obligations of the buyer, including premium payments and confidentiality

9. Privacy and Confidentiality: Provisions for handling personal and medical information in compliance with PIPEDA

10. Regulatory Compliance: Provisions ensuring compliance with applicable insurance and securities regulations

11. Term and Termination: Duration of the agreement and circumstances allowing for termination

12. Governing Law and Jurisdiction: Specification of applicable Canadian law and jurisdiction for disputes

13. General Provisions: Standard contractual provisions including notices, amendments, and severability