Viatical Settlement Provider License Renewal and Annual Report Notice
What is a viatical settlement in North Carolina?
NCGS 58-58-205 Provides Definitions for Viatical Settlement
“Viator” means the owner of a policy, or certificate holder under a group policy, who enters or seeks to enter a viatical settlement contract.
A viator shall not be limited to an owner of a life insurance policy or a certificate holder with a terminal or chronic illness or condition except where specifically addressed.
Viatical Settlement Provider Licenses must be renewed annually.
“Viatical settlement provider” means a person, other than a viator, that enters into a viatical settlement contract on residents of this State, or residents of another state, from offices within this State. "Viatical settlement provider" or "provider" does not include:
- A bank, savings bank, savings and loan association, credit union, or other licensed lending institution that takes an assignment of a life insurance policy as collateral for a loan;
- The issuer of a life insurance policy providing accelerated benefits under rules adopted by the Commissioner and under the contract;
- An authorized or eligible insurer that provides stop-loss coverage to a viatical settlement provider, purchaser, financing entity, special purpose entity, or related provider trust;
- A natural person who enters into or effectuates no more than one agreement in a calendar year for the transfer of life insurance policies for any value less than the expected death benefit;
- A financing entity;
- A special purpose entity;
- A related provider trust;
- A viatical settlement purchaser; or
- An accredited investor or qualified institutional buyer as defined respectively in Regulation D, Rule 501 or Rule 144A of the Federal Securities Act of 1933, as amended, and who purchases a viaticated policy from a viatical settlement provider.
Viatical Settlement Statutes NCGS 58-58-205 through NCGS 58-58-310.