We're seeing a big swing back to buying viaticals
. I was somewhat torn when the association decided to remove the word viatical
from the name.
D., 1993, Are Viatical
Settlements Securities Within the Regulatory Control of the Securities Act of 1933?
Since the Salazars wanted a big percentage return but were too small for the risky real estate deals, and had too little tolerance for stock funds given the bubbles and serious market reverses of the last few years, Tom recommended they invest in a privately syndicated pool of life insurance policies in a transaction called a viatical
Currently, 39 states and Puerto Rico regulate life settlements, and the National Association of Insurance Commissioners (NAIC) recognizes them as a viable solution (NAIC, "NAIC Adopts Viatical
Settlements Model Act Revisions," News Release (June 4, 2007), www.naic.org/Releases/2007_docs/viatical_settlements_model.htm).
(182) Iowa and West Virginia recently enacted similar legislation that prohibits a person from selling a policy within five years of its issuance, but that also requires viatical
companies and brokers to disclose information to insurers if a policy is sold within five years of issuance, and classifies SPIN-Life policies as fraudulent viatical
settlement enables someone facing a terminal illness to use the value of the life insurance policy prior to death to assist with the financial burdens of medical care, particularly if there is a loss of income during the final period.
The NAIC first adopted model legislation regulating the viatical
industry in 1993.
settlements with independent third parties; and
Our patients were able to return to work and no longer had to sell their life insurance policies to third party brokers known as "viatical
settlement companies." In-patient hospitalizations diminished and the insurance companies began to pay for the combination "cocktail" therapy known as highly active antiretroviral therapy or HAART.
Life settlements are not viatical
settlements, which terminally ill policyholders often use to raise quick cash.
If you do not advise your client that there is a third option--to sell the policies through a secondary market transaction known as a "viatical
settlement," you may cause that client to suffer a substantial financial loss.
This was the impetus for creation of the viatical