Article 78 requires among other things, (1) licensing of
viatical settlement companies and viatical settlement brokers; (2) the Superintendent's approval of viatical settlement agreements prior to use; and (3) certain disclosures and filings.
Life insurers brought tort suit against
viatical settlement companies and their court-appointed receiver, alleging that the defendants knowingly purchased and/or serviced life insurance policies from HIV-positive individuals who submitted fraudulent insurance applications stating that they had never been diagnosed or treated for AIDS or any other blood or immune system disorder.
New York is now home to 7
viatical settlement companies.
Before life insurance companies offered accelerated benefits, entrepreneurs formed
viatical settlement companies to provide accelerated payments to insureds.
The NAIC viatical model establishes guidelines for fair payment to policyholders and mandates that
viatical settlement companies make full disclosures to consumers.
While most
viatical settlement companies are legitimate, others mislead, deceive, or even defraud viatical investors.
Founded in 1988, it is one of the oldest
viatical settlement companies in the United States.
3) Viatical settlements are a specialized form of receivable financing under which
viatical settlement companies buy from the policyholder, at a discounted rate, the right to receive death benefits under life insurance policies.
Prior to the insurance industry entering into this market, private investors formed groups commonly known as
Viatical settlement companies for the purpose of purchasing, or taking assignments of, policies at a discount owned by the terminally ill.
31, 1996,
viatical settlement companies will be able to pay out a percentage of the policy's face value to the policyholder, assume responsibility for premium payments, and become the policy's beneficiary.
the oldest and one of the largest
viatical settlement companies in the United States.
Reputable life settlement companies have distanced themselves successfully from the unscrupulous image and fraud associated with some
viatical settlement companies in the 1990s.
