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.