Viatical Settlements

policy cash surrender value

25 months or more

D

A person acting as a viatical settlement provider/broker without being licensed who willfully violates any provision is guilty of a a class "x" felony

w/out having to obtain a license as a viatical settlement broker

A person licensed as an attorney, cpa or financial planner who is retained to represent the viator, and whose compensation is not paid directly or indirectly by the viatical settlement provider, may negotiate viatical settlement contracts on behalf of the viator

License from the commissioner

A person may not operate as a viatical settlement provider or viatical settlement broker without first obtaining a

20 credits; 3 years

An individual licensed as a viatical settlement broker (except for a licensed life producer) must complete "x" credits of training related to viatical settlements ever "x years.

the viator's dependent children are in college

An insurance policy may be viaticated within 5 years of the policy issue date if any of the following apply, except

C

Any person acting as a viatical settlement provider/broker without a license who willfully violates amu provision or any rule and when such a violation results in a loss of more than $10,000 is guilty of a class "x" felony

written acknowledgement by the viator that he/she is terminally or chronically ill and that the illness was diagnosed after the policy was issued.

Before entering into a viatical settlement contrat, a viatical settlement provider must obtain

Proceeds could be subject to claims of creditors There are possible alternatives to viatical settlement - accelerated death benefits Some or all of the proceeds could be taxed and assistance should be sought from a professional tax advisor

Disclosure items by viatical settlement brokers

80 percent

Less than 6 months

3 years

License term for a viatical settlement provider

15 days

The viator has the right to rescind a contract for "x" days after receiving the proceeds

Failing to honor a viatical settlement contract Exhibiting a pattern of unreasonable payments to viators Using a viatical settlement contract form that has not been approved by the commission

Viatical settlement brokers can lose their license for all of the following reasons

Transferring a viaticated policy to a viatical settlement purchase

Viatical settlement brokers can not lose their license for

65%

atleast 12, less than 18

60%

atleast 18, less than 25

75%

atleast 6 months, less than 12