Get APPLICATION FOR LICENSURE AS A VIATICAL SETTLEMENT ...

A viatical settlement provider is the person or company that buys the life insurance policy. The viatical settlement provider becomes the policy owner, must pay any premiums that are due, and eventually collects the full amount of the death benefit from the insurance company.

Typical viatical settlements sell for 50-70% of the death benefit value.

Many state insurance commissioners license the companies that buy viatical settlement to sell to investors and may have information about a specific company or viatical settlements in general.

To be eligible for a viatical settlement, the policyholder must be terminally ill or chronically ill with a life expectancy of fewer than two years. Most types of policy types qualify for a viatical, including term life. The average payout of a life insurance sale is 4-6 times the policy's cash surrender value.

A. Each viatical settlement provider shall file with the commissioner on or before March 1 of each year an annual statement containing such information as the commissioner may prescribe by regulation. Such information shall be limited to only those transactions where the viator is a resident of this state.

Life Settlement Provider License Renewal The term for the Life Settlement Provider license is one year.

NOTE: Once a policyholder receives settlement funds, he or she has a “10-day free-look period” in which to change his or her mind and cancel the settlement. The settlement funds must be returned to the viatical provider in order to cancel the viatical settlement under the free look provision.

In a viatical settlement, the insured has a life expectancy of two years or less. The investor in a viatical settlement pays all future premiums left on the life insurance policy and becomes the sole beneficiary of the policy when the insured dies.