Tennessee Viatical Settlement Act

The act regulates viatical settlements — transactions in which the owner of a life insurance policy transfers it to another party in exchange for payment — and the businesses that arrange and fund them. It establishes a licensing regime for viatical settlement providers, covering application and issuance, expiration and renewal, notice of changes affecting a licensee's qualifications, and grounds for suspension, revocation, or refusal to license, backed by authority to examine a licensee's records and business practices and to require annual reports, bonding, and implementing rules. It also governs the transactions themselves, setting required contract terms and conditions that must be satisfied before a settlement is entered into, mandating disclosures to both the policyholder and to purchasers of settlement interests, requiring funds to pass through an escrow or trust account, and prohibiting practices such as finder's fees, false or misleading advertising and solicitation, discrimination, and misuse of confidential information.

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