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Virginia Administrative Code (Last Updated: January 10, 2017) |
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Title 14. Insurance |
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Agency 5. State Corporation Commission, Bureau of Insurance |
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Chapter 71. Rules Governing Viatical Settlement Providers and Viatical Settlement Brokers |
Section 60. Standards for evaluation of reasonable payments
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A. In order to assure that viators receive a reasonable settlement for viaticating a life insurance policy, the compensation for viaticating a policy shall be no less than the following payouts for insureds who are terminally or chronically ill:
Insured's Life Expectancy
Minimum Percentage of Face Value (at time of viatication and withdrawals) Less Outstanding Loans Received by Viator
Less than 6 months
80%
At least 6 but less than 12 months
70%
At least 12 but less than 18 months
65%
At least 18 but less than 25 months
60%
B. If the insured's life expectancy is 25 months or more, the compensation for viaticating a policy shall be at least the greater of the cash surrender value at the time of the transaction or the then available accelerated death benefit in the policy.
C. Except where the cash surrender value is paid, the percentage may be reduced by 5.0% for viaticating a policy written by an insurer rated less than the highest four categories by A.M. Best or other comparable rating agencies, based on the most recent publication of such rating agencies at the time of viatication.
Historical Notes
Derived from Volume 14, Issue 02, eff. October 15, 1997; amended, Virginia Register Volume 19, Issue 01, eff. September 4, 2002; Volume 20, Issue 05, eff. November 1, 2003.