“Viatical settlement” defined. “Viatical settlement” means a written agreement for the payment of money, or anything else of value, which is less than the expected death benefit of a policy, in exchange for the viator’s assignment, sale, transfer or devise of the death benefit or ownership of any portion of the policy. The term includes:
1. An agreement for a loan or other financing secured primarily by a policy, other than a loan by an insurer pursuant to or secured by the cash value of a policy; and
2. An agreement to transfer ownership or change the beneficiary, in the future, regardless of the date of payment to the viator.
Last modified: February 27, 2006