B. 3 business days is correct. HRS §431C-33 establishes a controlled escrow procedure for life settlement proceeds. Once the provider receives from the owner the documents needed to effect the policy transfer, the provider must, within three business days , place the settlement proceeds into an escrow or trust account maintained by a trustee or escrow agent at a state- or federally chartered financial institution.
The money remains in escrow while the issuing insurer processes and acknowledges the change of ownership. Once the insurer confirms the transfer, the trustee or escrow agent must generally transfer the settlement proceeds due to the policyowner within another three business days .
This structure protects both sides of the transaction. The purchaser does not release funds directly before ownership transfer documentation is properly processed, while the policyowner receives assurance that the purchase funds have already been placed with an independent financial intermediary.
The transaction is therefore fundamentally different from merely handing a check to the seller at contract signing. Hawaiʻi requires documentary transfer, escrow funding, insurer acknowledgment, and timely release of proceeds.
One, five, and ten business days do not match the statutory escrow-funding deadline.
Reference topics: HRS §431C-33(i); Life Settlement Escrow; Policy Transfer; Settlement Proceeds.
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