Viatical Settlements Act

The Viatical Settlements Act governs the sale or transfer of a life insurance policy by its owner to a third party in exchange for compensation, and regulates the providers and brokers who fund and arrange those transactions. It establishes a licensing regime — covering application, bonding, broker training, and grounds for denial or revocation — requires settlement contracts and disclosure statements to be approved before use, and mandates disclosures to both the policy owner and the issuing insurer. It further imposes reporting, privacy, advertising, and fraud-prevention obligations, prohibits specified practices and conflicts of interest, and backs those requirements with examination and investigation authority, injunctive and civil remedies, cease-and-desist powers, criminal penalties, and treatment of violations as unfair trade practices.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.