Viatical Settlement Company

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Viatical Settlement Company

A company to which a life insurance policy holder sells his/her policy in exchange for a lump sum. The situation occurs when the policy's fair market value exceeds the cash surrender value that the insurer offers. The viatical settlement company must abide by applicable regulations, which, in the U.S., are set by individual states. The viatical settlement company becomes the policy's new beneficiary, is responsible for maintaining premiums, and, upon the death of the insured person, receives the benefit. The secondary market for life insurance began growing in the last part of the 20th century. The viatical settlement company is speculating on how long the insured person will live; indeed, it is in the company's financial interest for the insured person to die as soon as possible. A viatical settlement company is also called a life settlement provider.
References in periodicals archive ?
1) Fraud investigators, who may be life settlement providers or employees or independent contractors of those life settlement providers; and
Appendix A: Digest of sample state laws
Buerger added that, where once life settlement providers were the focus of lawsuits by insurers, now the tables are turning.
Buerger: Life settlement industry must evolve
This is one of the reasons why insurers and life settlement providers parted ways from the outset.
Coming to terms with life settlements: the industry may feel that the market competes with insurance policies--but some states are making that stance illegal
LISA President David Hartman, chief operating officer of Baltimore-based Life Settlement Providers, said the issue of withdrawn contracts was one for more than just the specific company involved, noting that "what's bad for one of us is bad for all of us.
Economic crisis taking its toll on funding of settlement deals: some funders are backing out of contracts at the last minute
other information about the life insurance policy, the selling policyowner and the insured requested by life settlement providers necessary for the life settlement broker to obtain on behalf of the selling policyowner offers to purchase a life insurance policy from multiple life settlement providers.
Appendix D: Disclosure statement (broker commission)
A sample case described below illustrates the range of calculated settlement prices produced by the three methods employed by life settlement providers.
Calculating confidence: stochastic pricing methods provide more complete information about life settlement risks and returns
Some life settlement providers have created such arrangements to make it easier for agents to offer life settlements with less burdensome paperwork.
Know Your Life Settlement Rules
While there are many successful life settlement providers and funding entities, there have been instances of company failure.
Need a better understanding? Here's your life settlement primer: the best way to recommend the best option is to know all the options
1543 would permit the California insurance department to collect information from life settlement providers that would help it monitor the market, insurance groups say.
STOLI bill passes in California
The insured may contact the life settlement provider directly, or through a financial adviser, or may use a life settlement broker, which solicits bids from multiple life settlement providers on behalf of the insured.
Appendix E: FINRA notice 06-08
Scott Page, president and CEO of the Lifeline Program, one of the nation's leading life settlement providers, will lead the webinar.
Lifeline Program Announces March 23rd Webinar on Life Settlements for Baby Boomers
Another option is to use a Life Settlement Broker ("Broker") who would contact several Life Settlement Providers for you to help you determine the Life Settlement market value of your life insurance policy.
Appendix H: Sample closing documents
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