{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-6000.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-6000.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-6000.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-6000.html"}],"law_id":85466,"edition_id":1,"section_id":85466,"structure_id":15429,"section_number":"38.2-6000","catch_line":"Definitions","history":"1997, c. 814, \u00a7 38.2-5700; 2003, c. 717.","full_text":"As used in this chapter:\n\t\t“Advertising” means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet, or similar communications media, including film strips, motion pictures, and videos published, disseminated, circulated or placed before the public, directly or indirectly, for the purpose of creating an interest in or inducing a person to sell a life insurance policy pursuant to a viatical settlement contract.\n\t\t“Business of viatical settlements” means an activity involved in, but not limited to, the offering, solicitation, negotiation, procurement, effectuation, purchasing, investing, financing, monitoring, tracking, underwriting, selling, transferring, assigning, pledging, or hypothecating in any other manner, of viatical settlement contracts or purchase agreements.\n\t\t“Chronically ill” means (i) being unable to perform at least two activities of daily living, which shall include eating, toileting, transferring, bathing, dressing or continence, (ii) requiring substantial supervision by another person to protect the individual from threats to health and safety due to severe cognitive impairment, or (iii) having a level of disability similar to that described in clause (i) as determined by the federal Secretary of Health and Human Resources.\n\t\t“Financing entity” means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a viatical settlement provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a viatical settlement contract, but whose principal activity related to the transaction is providing funds to effect the viatical settlement or purchase of one or more viaticated policies and who has an agreement in writing with one or more licensed viatical settlement providers to finance the acquisition of viatical settlement contracts. Financing entity does not include a non-accredited investor or viatical settlement purchaser.\n\t\t“Fraudulent viatical settlement act” includes:\n\n1\n\nActs or omissions committed by any person who, knowingly or with intent to defraud, for the purpose of depriving another of property or for pecuniary gain, commits or permits its employees or its agents to engage in acts including:\n\t\t\ta. Presenting, causing to be presented or preparing with knowledge or belief that it will be presented to or by a viatical settlement provider, viatical settlement broker, viatical settlement purchaser, financing entity, insurer, insurance producer, or any other person, false material information, or concealing material information, as part of, in support of, or concerning a fact material to one or more of the following: (i) an application for the issuance of a viatical settlement contract or insurance policy; (ii) the underwriting of a viatical settlement contract or insurance policy; (iii) a claim for payment or benefit pursuant to a viatical settlement contract or insurance policy; (iv) premiums paid on an insurance policy; (v) payments and changes in ownership or beneficiary made in accordance with the terms of a viatical settlement contract, or insurance policy; (vi) the reinstatement or conversion of an insurance policy; (vii) in the solicitation, offer, effectuation or sale of a viatical settlement contract or insurance policy; (viii) the issuance of written evidence of a viatical settlement contract or insurance policy; or (ix) a financing transaction;\n\t\t\tb. Employing any device, scheme, or artifice to defraud related to viaticated policies;2\n\nIn the furtherance of a fraud or to prevent the detection of a fraud any person commits or permits its employees or its agents to: (i) remove, conceal, alter, destroy, or sequester from the Commission the assets or records of a licensee or other person engaged in the business of viatical settlements; (ii) misrepresent or conceal the financial condition of a licensee, financing entity, insurer, or other person; (iii) transact the business of viatical settlements in violation of laws requiring a license, certificate of authority, or other legal authority for the transaction of the business of viatical settlements; or (iv) file with the Commission or the chief insurance regulatory official of another jurisdiction a document containing false information or otherwise conceals information about a material fact from the Commission;3\n\nEmbezzlement, theft, misappropriation or conversion of moneys, funds, premiums, credits, or other property of a viatical settlement provider, insurer, insured, viator, insurance policyowner, or any other person engaged in the business of viatical settlements or insurance;4\n\nRecklessly entering into, brokering, or otherwise dealing in a viatical settlement contract, the subject of which is a life insurance policy that was obtained by presenting false information concerning any fact material to the policy or by concealing, for the purpose of misleading another, information concerning any fact material to the policy, where the viator or the viator’s agent intended to defraud the policy’s issuer. “Recklessly” means engaging in the conduct in conscious and clearly unjustifiable disregard of a substantial likelihood of the existence of the relevant facts or risks, such disregard involving a gross deviation from acceptable standards of conduct; or5\n\nAttempting to commit, assisting, aiding or abetting in the commission of, or conspiracy to commit the acts or omissions specified in this subsection.\n\t\t\t“Licensee under this chapter” means a person licensed by the Commission as a viatical settlement provider or viatical settlement broker.\n\t\t\t“NAIC” means National Association of Insurance Commissioners.\n\t\t\t“Policy” means an individual or group policy, group certificate, contract or arrangement of life insurance affecting the rights of a resident of this Commonwealth or bearing a reasonable relation to this Commonwealth, regardless of whether delivered or issued for delivery in this Commonwealth.\n\t\t\t“Related provider trust” means a titling trust or other trust established by a licensed viatical settlement provider or a financing entity for the sole purpose of holding the ownership or beneficial interest in purchased policies in connection with a financing transaction. The trust shall have a written agreement with the licensed viatical settlement provider under which the licensed viatical settlement provider is responsible for ensuring compliance with all statutory and regulatory requirements and under which the trust agrees to make all records and files related to viatical settlement transactions available to the Commission as if those records and files were maintained directly by the licensed viatical settlement provider.\n\t\t\t“Special purpose entity” means a corporation, partnership, trust, limited liability company, or other similar entity formed solely to provide either directly or indirectly access to institutional capital markets for a financing entity or licensed viatical settlement provider.\n\t\t\t“Terminally ill” means having an illness or sickness that can reasonably be expected to result in death in 24 months or less.\n\t\t\t“Viatical settlement broker” means a person that on behalf of another and for a fee, commission or other valuable consideration introduces viators to viatical settlement providers, or offers or attempts to negotiate viatical settlement contracts between a viator and one or more viatical settlement providers. A viatical settlement broker may act as agent for a viatical settlement provider or on behalf of the viator, provided that a viatical settlement broker shall not be deemed to act exclusively for the viator unless, pursuant to written agreement between the parties, the broker agrees (i) to disclose fully all interests in the viatical settlement contract and relationships with the viatical settlement provider, including its affiliates and appointed or contracted agents, and (ii) that compensation for services as a viatical settlement broker shall be paid directly and only by the viator. The term does not include an attorney, certified public accountant, or a financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the viator and whose compensation is not paid directly or indirectly by the viatical settlement provider or viatical settlement purchaser.\n\t\t\t“Viatical settlement contract” means a written agreement establishing the terms under which compensation or anything of value will be paid, which compensation or value is less than the expected death benefit of the insurance policy or certificate, in return for the viator’s assignment, transfer, sale, devise or bequest of the death benefit or ownership of any portion of the insurance policy or certificate of insurance. A viatical settlement contract also includes a contract for a loan or other financing transaction with a viator secured primarily by an individual or group life insurance policy, other than a loan by a life insurance company pursuant to the terms of the life insurance contract, or a loan secured by the cash value of a policy. A viatical settlement contract includes an agreement with a viator to transfer ownership or change the beneficiary designation at a later date regardless of the date that compensation is paid to the viator. “Viatical settlement contracts” do not include accelerated benefits provisions contained in life insurance policies, whether issued with the original policy or as a rider, according to the regulations promulgated by the Commission.\n\t\t\t“Viatical settlement provider” means a person, other than a viator, that enters into or effectuates a viatical settlement contract. Viatical settlement provider does not include: (i) 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; (ii) the issuer of a life insurance policy providing accelerated benefits under § 38.2-3115.1 and pursuant to the contract; (iii) an authorized or eligible insurer that provides stop loss coverage to a viatical settlement provider, viatical settlement purchaser, financing entity, special purpose entity or related provider trust; (iv) 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; (v) a financing entity; (vi) a special purpose entity; (vii) a related provider trust; (viii) a viatical settlement purchaser; or (ix) 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 and does not communicate with the viator or insured who is a resident of this Commonwealth except through a licensee under this chapter.\n\t\t\t“Viatical settlement purchaser” means a person who gives a sum of money as consideration for a life insurance policy or an interest in the death benefits of a life insurance policy, or a person who owns or acquires or is entitled to a beneficial interest in a trust that owns a viatical settlement contract or is the beneficiary of a life insurance policy that has been or will be the subject of a viatical settlement contract, for the purpose of deriving an economic benefit. Viatical settlement purchaser does not include (i) a licensee under this chapter; (ii) 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; (iii) a financing entity; (iv) a special purpose entity; or (v) a related provider trust.\n\t\t\t“Viaticated policy” means a life insurance policy or certificate that has been acquired by a viatical settlement provider pursuant to a viatical settlement contract.\n\t\t\t“Viator” means the owner of a life insurance policy or a certificate holder under a group policy who enters or seeks to enter into a viatical settlement contract. For the purposes of this chapter and the application of Article 6.1 (§ 38.2-1865.1 et seq.) of Chapter 18 of this title, a viator shall not be limited to an owner of a life insurance policy or a certificate holder under a group policy insuring the life of an individual with a terminal or chronic illness except where specifically addressed. Viator does not include (i) a licensee under this chapter; (ii) 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; (iii) a financing entity; (iv) a special purpose entity; or (v) a related provider trust.","order_by":null,"text":{"0":{"id":306169,"text":"As used in this chapter:\n\t\t“Advertising” means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet, or similar communications media, including film strips, motion pictures, and videos published, disseminated, circulated or placed before the public, directly or indirectly, for the purpose of creating an interest in or inducing a person to sell a life insurance policy pursuant to a viatical settlement contract.\n\t\t“Business of viatical settlements” means an activity involved in, but not limited to, the offering, solicitation, negotiation, procurement, effectuation, purchasing, investing, financing, monitoring, tracking, underwriting, selling, transferring, assigning, pledging, or hypothecating in any other manner, of viatical settlement contracts or purchase agreements.\n\t\t“Chronically ill” means (i) being unable to perform at least two activities of daily living, which shall include eating, toileting, transferring, bathing, dressing or continence, (ii) requiring substantial supervision by another person to protect the individual from threats to health and safety due to severe cognitive impairment, or (iii) having a level of disability similar to that described in clause (i) as determined by the federal Secretary of Health and Human Resources.\n\t\t“Financing entity” means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a viatical settlement provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a viatical settlement contract, but whose principal activity related to the transaction is providing funds to effect the viatical settlement or purchase of one or more viaticated policies and who has an agreement in writing with one or more licensed viatical settlement providers to finance the acquisition of viatical settlement contracts. Financing entity does not include a non-accredited investor or viatical settlement purchaser.\n\t\t“Fraudulent viatical settlement act” includes:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":306170,"text":"Acts or omissions committed by any person who, knowingly or with intent to defraud, for the purpose of depriving another of property or for pecuniary gain, commits or permits its employees or its agents to engage in acts including:\n\t\t\ta. Presenting, causing to be presented or preparing with knowledge or belief that it will be presented to or by a viatical settlement provider, viatical settlement broker, viatical settlement purchaser, financing entity, insurer, insurance producer, or any other person, false material information, or concealing material information, as part of, in support of, or concerning a fact material to one or more of the following: (i) an application for the issuance of a viatical settlement contract or insurance policy; (ii) the underwriting of a viatical settlement contract or insurance policy; (iii) a claim for payment or benefit pursuant to a viatical settlement contract or insurance policy; (iv) premiums paid on an insurance policy; (v) payments and changes in ownership or beneficiary made in accordance with the terms of a viatical settlement contract, or insurance policy; (vi) the reinstatement or conversion of an insurance policy; (vii) in the solicitation, offer, effectuation or sale of a viatical settlement contract or insurance policy; (viii) the issuance of written evidence of a viatical settlement contract or insurance policy; or (ix) a financing transaction;\n\t\t\tb. Employing any device, scheme, or artifice to defraud related to viaticated policies;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":306171,"text":"In the furtherance of a fraud or to prevent the detection of a fraud any person commits or permits its employees or its agents to: (i) remove, conceal, alter, destroy, or sequester from the Commission the assets or records of a licensee or other person engaged in the business of viatical settlements; (ii) misrepresent or conceal the financial condition of a licensee, financing entity, insurer, or other person; (iii) transact the business of viatical settlements in violation of laws requiring a license, certificate of authority, or other legal authority for the transaction of the business of viatical settlements; or (iv) file with the Commission or the chief insurance regulatory official of another jurisdiction a document containing false information or otherwise conceals information about a material fact from the Commission;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":306172,"text":"Embezzlement, theft, misappropriation or conversion of moneys, funds, premiums, credits, or other property of a viatical settlement provider, insurer, insured, viator, insurance policyowner, or any other person engaged in the business of viatical settlements or insurance;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":306173,"text":"Recklessly entering into, brokering, or otherwise dealing in a viatical settlement contract, the subject of which is a life insurance policy that was obtained by presenting false information concerning any fact material to the policy or by concealing, for the purpose of misleading another, information concerning any fact material to the policy, where the viator or the viator’s agent intended to defraud the policy’s issuer. “Recklessly” means engaging in the conduct in conscious and clearly unjustifiable disregard of a substantial likelihood of the existence of the relevant facts or risks, such disregard involving a gross deviation from acceptable standards of conduct; or","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":306174,"text":"Attempting to commit, assisting, aiding or abetting in the commission of, or conspiracy to commit the acts or omissions specified in this subsection.\n\t\t\t“Licensee under this chapter” means a person licensed by the Commission as a viatical settlement provider or viatical settlement broker.\n\t\t\t“NAIC” means National Association of Insurance Commissioners.\n\t\t\t“Policy” means an individual or group policy, group certificate, contract or arrangement of life insurance affecting the rights of a resident of this Commonwealth or bearing a reasonable relation to this Commonwealth, regardless of whether delivered or issued for delivery in this Commonwealth.\n\t\t\t“Related provider trust” means a titling trust or other trust established by a licensed viatical settlement provider or a financing entity for the sole purpose of holding the ownership or beneficial interest in purchased policies in connection with a financing transaction. The trust shall have a written agreement with the licensed viatical settlement provider under which the licensed viatical settlement provider is responsible for ensuring compliance with all statutory and regulatory requirements and under which the trust agrees to make all records and files related to viatical settlement transactions available to the Commission as if those records and files were maintained directly by the licensed viatical settlement provider.\n\t\t\t“Special purpose entity” means a corporation, partnership, trust, limited liability company, or other similar entity formed solely to provide either directly or indirectly access to institutional capital markets for a financing entity or licensed viatical settlement provider.\n\t\t\t“Terminally ill” means having an illness or sickness that can reasonably be expected to result in death in 24 months or less.\n\t\t\t“Viatical settlement broker” means a person that on behalf of another and for a fee, commission or other valuable consideration introduces viators to viatical settlement providers, or offers or attempts to negotiate viatical settlement contracts between a viator and one or more viatical settlement providers. A viatical settlement broker may act as agent for a viatical settlement provider or on behalf of the viator, provided that a viatical settlement broker shall not be deemed to act exclusively for the viator unless, pursuant to written agreement between the parties, the broker agrees (i) to disclose fully all interests in the viatical settlement contract and relationships with the viatical settlement provider, including its affiliates and appointed or contracted agents, and (ii) that compensation for services as a viatical settlement broker shall be paid directly and only by the viator. The term does not include an attorney, certified public accountant, or a financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the viator and whose compensation is not paid directly or indirectly by the viatical settlement provider or viatical settlement purchaser.\n\t\t\t“Viatical settlement contract” means a written agreement establishing the terms under which compensation or anything of value will be paid, which compensation or value is less than the expected death benefit of the insurance policy or certificate, in return for the viator’s assignment, transfer, sale, devise or bequest of the death benefit or ownership of any portion of the insurance policy or certificate of insurance. A viatical settlement contract also includes a contract for a loan or other financing transaction with a viator secured primarily by an individual or group life insurance policy, other than a loan by a life insurance company pursuant to the terms of the life insurance contract, or a loan secured by the cash value of a policy. A viatical settlement contract includes an agreement with a viator to transfer ownership or change the beneficiary designation at a later date regardless of the date that compensation is paid to the viator. “Viatical settlement contracts” do not include accelerated benefits provisions contained in life insurance policies, whether issued with the original policy or as a rider, according to the regulations promulgated by the Commission.\n\t\t\t“Viatical settlement provider” means a person, other than a viator, that enters into or effectuates a viatical settlement contract. Viatical settlement provider does not include: (i) 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; (ii) the issuer of a life insurance policy providing accelerated benefits under § 38.2-3115.1 and pursuant to the contract; (iii) an authorized or eligible insurer that provides stop loss coverage to a viatical settlement provider, viatical settlement purchaser, financing entity, special purpose entity or related provider trust; (iv) 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; (v) a financing entity; (vi) a special purpose entity; (vii) a related provider trust; (viii) a viatical settlement purchaser; or (ix) 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 and does not communicate with the viator or insured who is a resident of this Commonwealth except through a licensee under this chapter.\n\t\t\t“Viatical settlement purchaser” means a person who gives a sum of money as consideration for a life insurance policy or an interest in the death benefits of a life insurance policy, or a person who owns or acquires or is entitled to a beneficial interest in a trust that owns a viatical settlement contract or is the beneficiary of a life insurance policy that has been or will be the subject of a viatical settlement contract, for the purpose of deriving an economic benefit. Viatical settlement purchaser does not include (i) a licensee under this chapter; (ii) 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; (iii) a financing entity; (iv) a special purpose entity; or (v) a related provider trust.\n\t\t\t“Viaticated policy” means a life insurance policy or certificate that has been acquired by a viatical settlement provider pursuant to a viatical settlement contract.\n\t\t\t“Viator” means the owner of a life insurance policy or a certificate holder under a group policy who enters or seeks to enter into a viatical settlement contract. For the purposes of this chapter and the application of Article 6.1 (§ 38.2-1865.1 et seq.) of Chapter 18 of this title, a viator shall not be limited to an owner of a life insurance policy or a certificate holder under a group policy insuring the life of an individual with a terminal or chronic illness except where specifically addressed. Viator does not include (i) a licensee under this chapter; (ii) 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; (iii) a financing entity; (iv) a special purpose entity; or (v) a related provider trust.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":15429,"edition_id":1,"name":"Viatical Settlements Act","identifier":"60","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:54:55","date_modified":"2026-06-26 03:54:55","permalink":{"id":218163,"object_type":"structure","relational_id":15429,"identifier":"60","token":"38.2\/60","url":"\/38.2\/60\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85466,"structure_id":15429,"section_number":"38.2-6000","catch_line":"Definitions","url":"\/38.2-6000\/","token":"38.2\/60\/38.2-6000","metadata":false},{"id":85657,"structure_id":15429,"section_number":"38.2-6001","catch_line":"Viatical settlement brokers","url":"\/38.2-6001\/","token":"38.2\/60\/38.2-6001","metadata":false},{"id":61028,"structure_id":15429,"section_number":"38.2-6002","catch_line":"Viatical settlement providers, license requirements","url":"\/38.2-6002\/","token":"38.2\/60\/38.2-6002","metadata":false},{"id":76487,"structure_id":15429,"section_number":"38.2-6003","catch_line":"Approval of viatical settlement contracts and disclosure statements","url":"\/38.2-6003\/","token":"38.2\/60\/38.2-6003","metadata":false},{"id":66010,"structure_id":15429,"section_number":"38.2-6004","catch_line":"Reporting requirements","url":"\/38.2-6004\/","token":"38.2\/60\/38.2-6004","metadata":false},{"id":72848,"structure_id":15429,"section_number":"38.2-6005","catch_line":"Privacy","url":"\/38.2-6005\/","token":"38.2\/60\/38.2-6005","metadata":false},{"id":84374,"structure_id":15429,"section_number":"38.2-6006","catch_line":"Examinations; record retention; investigations","url":"\/38.2-6006\/","token":"38.2\/60\/38.2-6006","metadata":false},{"id":83681,"structure_id":15429,"section_number":"38.2-6007","catch_line":"Disclosure","url":"\/38.2-6007\/","token":"38.2\/60\/38.2-6007","metadata":false},{"id":63520,"structure_id":15429,"section_number":"38.2-6008","catch_line":"General rules","url":"\/38.2-6008\/","token":"38.2\/60\/38.2-6008","metadata":false},{"id":73158,"structure_id":15429,"section_number":"38.2-6009","catch_line":"Prohibited practices","url":"\/38.2-6009\/","token":"38.2\/60\/38.2-6009","metadata":false},{"id":66115,"structure_id":15429,"section_number":"38.2-6010","catch_line":"Advertising for viatical settlements","url":"\/38.2-6010\/","token":"38.2\/60\/38.2-6010","metadata":false},{"id":84400,"structure_id":15429,"section_number":"38.2-6011","catch_line":"Fraud prevention and control","url":"\/38.2-6011\/","token":"38.2\/60\/38.2-6011","metadata":false},{"id":66961,"structure_id":15429,"section_number":"38.2-6012","catch_line":"Civil remedies","url":"\/38.2-6012\/","token":"38.2\/60\/38.2-6012","metadata":false},{"id":77614,"structure_id":15429,"section_number":"38.2-6013","catch_line":"Unfair trade practices","url":"\/38.2-6013\/","token":"38.2\/60\/38.2-6013","metadata":false},{"id":58773,"structure_id":15429,"section_number":"38.2-6014","catch_line":"Commission authority","url":"\/38.2-6014\/","token":"38.2\/60\/38.2-6014","metadata":false},{"id":70459,"structure_id":15429,"section_number":"38.2-6015","catch_line":"Immunity from liability","url":"\/38.2-6015\/","token":"38.2\/60\/38.2-6015","metadata":false},{"id":60651,"structure_id":15429,"section_number":"38.2-6016","catch_line":"Applicability of securities laws","url":"\/38.2-6016\/","token":"38.2\/60\/38.2-6016","metadata":false}],"next_section":{"id":85657,"structure_id":15429,"section_number":"38.2-6001","catch_line":"Viatical settlement brokers","url":"\/38.2-6001\/","token":"38.2\/60\/38.2-6001","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-6000\/","history_text":"

This law was first created in 1997. The record of its establishment is cataloged in chapter 814<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2003, chapter 717<\/a>.<\/p>","references":[{"id":67482,"section_number":"38.2-1800","catch_line":"Definitions","order_by":null,"url":"\/38.2-1800\/"}],"refers_to":[{"id":71463,"section_number":"38.2-1865.1","catch_line":"License required for viatical settlement brokers; Commission's authority; conditions; renewal application and fee; reinstatement; waiver; fingerprinting","order_by":null,"url":"\/38.2-1865.1\/"},{"id":72867,"section_number":"38.2-3115.1","catch_line":"Accelerated payment of benefits","order_by":null,"url":"\/38.2-3115.1\/"}],"permalink":{"id":218165,"object_type":"law","relational_id":85466,"identifier":"38.2-6000","token":"38.2\/60\/38.2-6000","url":"\/38.2-6000\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-6000\/","token":"38.2\/60\/38.2-6000","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-6000","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this chapter:\n\t\t“Advertising<\/span>” means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet, or similar communications media, including film strips, motion<\/span> pictures, and videos published, disseminated, circulated or placed before the public, directly or indirectly, for the purpose of creating an interest in or inducing a person<\/span> to sell a life insurance<\/span> policy<\/span> pursuant to a viatical settlement contract<\/span>.\n\t\t“Business of viatical settlements<\/span>” means an activity involved in, but not limited to, the offering, solicitation, negotiation, procurement, effectuation, purchasing, investing, financing, monitoring, tracking, underwriting, selling, transferring, assigning, pledging, or hypothecating in any other manner, of viatical settlement contracts<\/span><\/span> or purchase agreements.\n\t\t“Chronically ill<\/span>” means (i) being unable to perform at least two activities of daily living, which shall include eating, toileting, transferring, bathing, dressing or continence, (ii) requiring substantial supervision by another person<\/span> to protect the individual from threats to health and safety due to severe cognitive impairment, or (iii) having a level of disability similar to that described in clause (i) as determined by the federal Secretary of Health and Human Resources.\n\t\t“Financing entity<\/span>” means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy<\/span> or certificate from a viatical settlement provider<\/span>, credit enhancer, or any entity that has a direct ownership in a policy<\/span> or certificate that is the subject of a viatical settlement contract<\/span>, but whose principal activity related to the transaction is providing funds to effect the viatical settlement or purchase of one or more viaticated policies and who has an agreement in writing with one or more licensed viatical settlement providers<\/span> to finance the acquisition of viatical settlement contracts<\/span><\/span>. Financing entity<\/span> does not include a non-accredited investor or viatical settlement purchaser<\/span>.\n\t\t“Fraudulent viatical settlement act” includes:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Acts or omissions committed by any person<\/span> who, knowingly or with intent<\/span> to defraud, for the purpose of depriving another of property or for pecuniary gain, commits or permits its employees or its agents to engage in acts including:\n\t\t\ta. Presenting, causing to be presented or preparing with knowledge or belief that it will be presented to or by a viatical settlement provider<\/span>, viatical settlement broker<\/span>, viatical settlement purchaser<\/span>, financing entity<\/span>, insurer<\/span>, insurance<\/span> producer, or any other person<\/span>, false material<\/span> information, or concealing material<\/span> information, as part of, in support of, or concerning a fact<\/span> material<\/span> to one or more of the following: (i) an application for the issuance of a viatical settlement contract<\/span> or insurance<\/span> policy<\/span>; (ii) the underwriting of a viatical settlement contract<\/span> or insurance<\/span> policy<\/span>; (iii) a claim for payment or benefit pursuant to a viatical settlement contract<\/span> or insurance<\/span> policy<\/span>; (iv) premiums paid on an insurance<\/span> policy<\/span>; (v) payments and changes in ownership or beneficiary made in accordance with the terms of a viatical settlement contract<\/span>, or insurance<\/span> policy<\/span>; (vi) the reinstatement or conversion of an insurance<\/span> policy<\/span>; (vii) in the solicitation, offer, effectuation or sale of a viatical settlement contract<\/span> or insurance<\/span> policy<\/span>; (viii) the issuance of written evidence<\/span> of a viatical settlement contract<\/span> or insurance<\/span> policy<\/span>; or (ix) a financing transaction;\n\t\t\tb. Employing any device, scheme, or artifice to defraud related to viaticated policies; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In the furtherance of a fraud<\/span> or to prevent the detection of a fraud<\/span> any person<\/span> commits or permits its employees or its agents to: (i) remove, conceal, alter, destroy, or sequester<\/span> from the Commission<\/span> the assets<\/span> or records of a licensee or other person<\/span> engaged in the business of viatical settlements<\/span>; (ii) misrepresent or conceal the financial condition of a licensee, financing entity<\/span>, insurer<\/span>, or other person<\/span>; (iii) transact the business of viatical settlements<\/span> in violation of laws<\/span> requiring a license, certificate of authority, or other legal authority for the transaction of the business of viatical settlements<\/span>; or (iv) file with the Commission<\/span> or the chief insurance<\/span> regulatory official of another jurisdiction<\/span> a document containing false information or otherwise conceals information about a material<\/span> fact<\/span> from the Commission<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Embezzlement<\/span>, theft, misappropriation or conversion of moneys, funds, premiums, credits, or other property of a viatical settlement provider<\/span>, insurer<\/span>, insured, viator<\/span>, insurance<\/span> policyowner, or any other person<\/span> engaged in the business of viatical settlements<\/span> or insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Recklessly<\/span> entering into, brokering, or otherwise dealing in a viatical settlement contract<\/span>, the subject of which is a life insurance<\/span> policy<\/span> that was obtained by presenting false information concerning any fact<\/span> material<\/span> to the policy<\/span> or by concealing, for the purpose of misleading another, information concerning any fact<\/span> material<\/span> to the policy<\/span>, where the viator<\/span> or the viator<\/span>’s agent intended to defraud the policy<\/span>’s issuer. “Recklessly<\/span>” means engaging in the conduct in conscious and clearly unjustifiable disregard of a substantial likelihood of the existence of the relevant facts<\/span> or risks, such disregard involving a gross deviation from acceptable standards of conduct; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Attempting to commit, assisting, aiding or abetting in the commission<\/span> of, or conspiracy to commit the acts or omissions specified in this subsection.\n\t\t\t“Licensee under this chapter<\/span>” means a person<\/span> licensed by the Commission<\/span> as a viatical settlement provider<\/span> or viatical settlement broker<\/span>.\n\t\t\t“NAIC<\/span>” means National Association of Insurance Commissioners<\/span>.\n\t\t\t“Policy” means an individual or group policy, group certificate, contract or arrangement of life insurance affecting the rights of a resident of this Commonwealth or bearing a reasonable relation to this Commonwealth, regardless of whether delivered or issued for delivery in this Commonwealth.\n\t\t\t“Related provider trust<\/span>” means a titling trust or other trust established by a licensed viatical settlement provider<\/span> or a financing entity<\/span> for the sole purpose of holding the ownership or beneficial interest in purchased policies in connection with a financing transaction. The trust shall have a written agreement with the licensed viatical settlement provider<\/span> under which the licensed viatical settlement provider<\/span> is responsible for ensuring compliance with all statutory and regulatory requirements and under which the trust agrees to make all records and files related to viatical settlement transactions available to the Commission<\/span> as if those records and files were maintained directly by the licensed viatical settlement provider<\/span>.\n\t\t\t“Special purpose entity<\/span>” means a corporation, partnership, trust, limited liability company, or other similar entity formed solely to provide either directly or indirectly access to institutional capital markets for a financing entity<\/span> or licensed viatical settlement provider<\/span>.\n\t\t\t“Terminally ill<\/span>” means having an illness or sickness that can reasonably be expected to result in death in 24 months or less.\n\t\t\t“Viatical settlement broker<\/span>” means a person<\/span> that on behalf of another and for a fee, commission<\/span> or other valuable consideration introduces viators<\/span> to viatical settlement providers<\/span>, or offers or attempts to negotiate viatical settlement contracts<\/span><\/span> between a viator<\/span> and one or more viatical settlement providers<\/span>. A viatical settlement broker<\/span> may act as agent for a viatical settlement provider<\/span> or on behalf of the viator<\/span>, provided that a viatical settlement broker<\/span> shall not be deemed to act exclusively for the viator<\/span> unless, pursuant to written agreement between the parties, the broker agrees (i) to disclose fully all interests in the viatical settlement contract<\/span> and relationships with the viatical settlement provider<\/span>, including its affiliates and appointed or contracted agents, and (ii) that compensation for services as a viatical settlement broker<\/span> shall be paid directly and only by the viator<\/span>. The term does not include an attorney, certified public accountant, or a financial planner accredited by a nationally recognized accreditation agency, who is retained to represent the viator<\/span> and whose compensation is not paid directly or indirectly by the viatical settlement provider<\/span> or viatical settlement purchaser<\/span>.\n\t\t\t“Viatical settlement contract<\/span>” means a written agreement establishing the terms under which compensation or anything of value will be paid, which compensation or value is less than the expected death benefit of the insurance policy or certificate, in return for the viator<\/span>’s assignment, transfer, sale, devise or bequest of the death benefit or ownership of any portion of the insurance policy or certificate of insurance. A viatical settlement contract<\/span> also includes a contract for a loan or other financing transaction with a viator<\/span> secured primarily by an individual or group life insurance policy, other than a loan by a life insurance company<\/span> pursuant to the terms of the life insurance contract, or a loan secured by the cash value of a policy. A viatical settlement contract<\/span> includes an agreement with a viator<\/span> to transfer ownership or change the beneficiary designation at a later date regardless of the date that compensation is paid to the viator<\/span>. “Viatical settlement contracts<\/span><\/span>” do not include accelerated benefits provisions contained in life insurance policies<\/span>, whether issued with the original policy or as a rider, according to the regulations promulgated by the Commission<\/span>.\n\t\t\t“Viatical settlement provider<\/span>” means a person<\/span>, other than a viator<\/span>, that enters into or effectuates a viatical settlement contract<\/span>. Viatical settlement provider<\/span> does not include: (i) 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<\/span> for a loan; (ii) the issuer of a life insurance policy providing accelerated benefits under § 38.2-3115.1<\/a> and pursuant to the contract; (iii) an authorized or eligible insurer<\/span> that provides stop loss coverage to a viatical settlement provider<\/span>, viatical settlement purchaser<\/span>, financing entity<\/span>, special purpose entity<\/span> or related provider trust<\/span>; (iv) a natural person<\/span> who enters into or effectuates no more than one agreement in a calendar year for the transfer of life insurance policies<\/span> for any value less than the expected death benefit; (v) a financing entity<\/span>; (vi) a special purpose entity<\/span>; (vii) a related provider trust<\/span>; (viii) a viatical settlement purchaser<\/span>; or (ix) 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<\/span> from a viatical settlement provider<\/span> and does not communicate with the viator<\/span> or insured who is a resident of this Commonwealth except through a licensee under this chapter<\/span>.\n\t\t\t“Viatical settlement purchaser<\/span>” means a person<\/span> who gives a sum of money as consideration for a life insurance policy or an interest in the death benefits of a life insurance policy, or a person<\/span> who owns or acquires or is entitled to a beneficial interest in a trust that owns a viatical settlement contract<\/span> or is the beneficiary of a life insurance policy that has been or will be the subject of a viatical settlement contract<\/span>, for the purpose of deriving an economic benefit. Viatical settlement purchaser<\/span> does not include (i) a licensee under this chapter<\/span>; (ii) 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; (iii) a financing entity<\/span>; (iv) a special purpose entity<\/span>; or (v) a related provider trust<\/span>.\n\t\t\t“Viaticated policy<\/span>” means a life insurance policy or certificate that has been acquired by a viatical settlement provider<\/span> pursuant to a viatical settlement contract<\/span>.\n\t\t\t“Viator<\/span>” means the owner of a life insurance policy or a certificate holder under a group policy who enters or seeks to enter into a viatical settlement contract<\/span>. For the purposes of this chapter and the application of Article 6.1 (§ 38.2-1865.1<\/a> et seq.) of Chapter 18 of this title, a viator<\/span> shall not be limited to an owner of a life insurance policy or a certificate holder under a group policy insuring the life of an individual with a terminal or chronic illness except where specifically addressed. Viator<\/span> does not include (i) a licensee under this chapter<\/span>; (ii) 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; (iii) a financing entity<\/span>; (iv) a special purpose entity<\/span>; or (v) a related provider trust<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 38.2-6000)\n\nAs used in this chapter:\n\t\t“Advertising” means any written, electronic, or printed\ncommunication or any communication by means of recorded telephone messages or\ntransmitted on radio, television, the Internet, or similar communications media,\nincluding film strips, motion pictures, and videos published, disseminated,\ncirculated or placed before the public, directly or indirectly, for the purpose\nof creating an interest in or inducing a person to sell a life insurance policy\npursuant to a viatical settlement contract.\n\t\t“Business of viatical settlements” means an activity involved in,\nbut not limited to, the offering, solicitation, negotiation, procurement,\neffectuation, purchasing, investing, financing, monitoring, tracking,\nunderwriting, selling, transferring, assigning, pledging, or hypothecating in\nany other manner, of viatical settlement contracts or purchase agreements.\n\t\t“Chronically ill” means (i) being unable to perform at least two\nactivities of daily living, which shall include eating, toileting, transferring,\nbathing, dressing or continence, (ii) requiring substantial supervision by\nanother person to protect the individual from threats to health and safety due\nto severe cognitive impairment, or (iii) having a level of disability similar to\nthat described in clause (i) as determined by the federal Secretary of Health\nand Human Resources.\n\t\t“Financing entity” means an underwriter, placement agent, lender,\npurchaser of securities, purchaser of a policy or certificate from a viatical\nsettlement provider, credit enhancer, or any entity that has a direct ownership\nin a policy or certificate that is the subject of a viatical settlement\ncontract, but whose principal activity related to the transaction is providing\nfunds to effect the viatical settlement or purchase of one or more viaticated\npolicies and who has an agreement in writing with one or more licensed viatical\nsettlement providers to finance the acquisition of viatical settlement\ncontracts. Financing entity does not include a non-accredited investor or\nviatical settlement purchaser.\n\t\t“Fraudulent viatical settlement act” includes:\n\n1. Acts or omissions committed by any person who, knowingly or with intent to\ndefraud, for the purpose of depriving another of property or for pecuniary gain,\ncommits or permits its employees or its agents to engage in acts including:\n\t\t\ta. Presenting, causing to be presented or preparing with knowledge or belief\nthat it will be presented to or by a viatical settlement provider, viatical\nsettlement broker, viatical settlement purchaser, financing entity, insurer,\ninsurance producer, or any other person, false material information, or\nconcealing material information, as part of, in support of, or concerning a fact\nmaterial to one or more of the following: (i) an application for the issuance of\na viatical settlement contract or insurance policy; (ii) the underwriting of a\nviatical settlement contract or insurance policy; (iii) a claim for payment or\nbenefit pursuant to a viatical settlement contract or insurance policy; (iv)\npremiums paid on an insurance policy; (v) payments and changes in ownership or\nbeneficiary made in accordance with the terms of a viatical settlement contract,\nor insurance policy; (vi) the reinstatement or conversion of an insurance\npolicy; (vii) in the solicitation, offer, effectuation or sale of a viatical\nsettlement contract or insurance policy; (viii) the issuance of written evidence\nof a viatical settlement contract or insurance policy; or (ix) a financing\ntransaction;\n\t\t\tb. Employing any device, scheme, or artifice to defraud related to viaticated\npolicies;\n\n2. In the furtherance of a fraud or to prevent the detection of a fraud any\nperson commits or permits its employees or its agents to: (i) remove, conceal,\nalter, destroy, or sequester from the Commission the assets or records of a\nlicensee or other person engaged in the business of viatical settlements; (ii)\nmisrepresent or conceal the financial condition of a licensee, financing entity,\ninsurer, or other person; (iii) transact the business of viatical settlements in\nviolation of laws requiring a license, certificate of authority, or other legal\nauthority for the transaction of the business of viatical settlements; or (iv)\nfile with the Commission or the chief insurance regulatory official of another\njurisdiction a document containing false information or otherwise conceals\ninformation about a material fact from the Commission;\n\n3. Embezzlement, theft, misappropriation or conversion of moneys, funds,\npremiums, credits, or other property of a viatical settlement provider, insurer,\ninsured, viator, insurance policyowner, or any other person engaged in the\nbusiness of viatical settlements or insurance;\n\n4. Recklessly entering into, brokering, or otherwise dealing in a viatical\nsettlement contract, the subject of which is a life insurance policy that was\nobtained by presenting false information concerning any fact material to the\npolicy or by concealing, for the purpose of misleading another, information\nconcerning any fact material to the policy, where the viator or the\nviator’s agent intended to defraud the policy’s issuer.\n“Recklessly” means engaging in the conduct in conscious and clearly\nunjustifiable disregard of a substantial likelihood of the existence of the\nrelevant facts or risks, such disregard involving a gross deviation from\nacceptable standards of conduct; or\n\n5. Attempting to commit, assisting, aiding or abetting in the commission of, or\nconspiracy to commit the acts or omissions specified in this subsection.\n\t\t\t“Licensee under this chapter” means a person licensed by the\nCommission as a viatical settlement provider or viatical settlement broker.\n\t\t\t“NAIC” means National Association of Insurance Commissioners.\n\t\t\t“Policy” means an individual or group policy, group certificate,\ncontract or arrangement of life insurance affecting the rights of a resident of\nthis Commonwealth or bearing a reasonable relation to this Commonwealth,\nregardless of whether delivered or issued for delivery in this Commonwealth.\n\t\t\t“Related provider trust” means a titling trust or other trust\nestablished by a licensed viatical settlement provider or a financing entity for\nthe sole purpose of holding the ownership or beneficial interest in purchased\npolicies in connection with a financing transaction. The trust shall have a\nwritten agreement with the licensed viatical settlement provider under which the\nlicensed viatical settlement provider is responsible for ensuring compliance\nwith all statutory and regulatory requirements and under which the trust agrees\nto make all records and files related to viatical settlement transactions\navailable to the Commission as if those records and files were maintained\ndirectly by the licensed viatical settlement provider.\n\t\t\t“Special purpose entity” means a corporation, partnership, trust,\nlimited liability company, or other similar entity formed solely to provide\neither directly or indirectly access to institutional capital markets for a\nfinancing entity or licensed viatical settlement provider.\n\t\t\t“Terminally ill” means having an illness or sickness that can\nreasonably be expected to result in death in 24 months or less.\n\t\t\t“Viatical settlement broker” means a person that on behalf of\nanother and for a fee, commission or other valuable consideration introduces\nviators to viatical settlement providers, or offers or attempts to negotiate\nviatical settlement contracts between a viator and one or more viatical\nsettlement providers. A viatical settlement broker may act as agent for a\nviatical settlement provider or on behalf of the viator, provided that a\nviatical settlement broker shall not be deemed to act exclusively for the viator\nunless, pursuant to written agreement between the parties, the broker agrees (i)\nto disclose fully all interests in the viatical settlement contract and\nrelationships with the viatical settlement provider, including its affiliates\nand appointed or contracted agents, and (ii) that compensation for services as a\nviatical settlement broker shall be paid directly and only by the viator. The\nterm does not include an attorney, certified public accountant, or a financial\nplanner accredited by a nationally recognized accreditation agency, who is\nretained to represent the viator and whose compensation is not paid directly or\nindirectly by the viatical settlement provider or viatical settlement purchaser.\n\t\t\t“Viatical settlement contract” means a written agreement\nestablishing the terms under which compensation or anything of value will be\npaid, which compensation or value is less than the expected death benefit of the\ninsurance policy or certificate, in return for the viator’s assignment,\ntransfer, sale, devise or bequest of the death benefit or ownership of any\nportion of the insurance policy or certificate of insurance. A viatical\nsettlement contract also includes a contract for a loan or other financing\ntransaction with a viator secured primarily by an individual or group life\ninsurance policy, other than a loan by a life insurance company pursuant to the\nterms of the life insurance contract, or a loan secured by the cash value of a\npolicy. A viatical settlement contract includes an agreement with a viator to\ntransfer ownership or change the beneficiary designation at a later date\nregardless of the date that compensation is paid to the viator. “Viatical\nsettlement contracts” do not include accelerated benefits provisions\ncontained in life insurance policies, whether issued with the original policy or\nas a rider, according to the regulations promulgated by the Commission.\n\t\t\t“Viatical settlement provider” means a person, other than a\nviator, that enters into or effectuates a viatical settlement contract. Viatical\nsettlement provider does not include: (i) a bank, savings bank, savings and loan\nassociation, credit union, or other licensed lending institution that takes an\nassignment of a life insurance policy as collateral for a loan; (ii) the issuer\nof a life insurance policy providing accelerated benefits under §\n38.2-3115.1 and pursuant to the contract; (iii) an authorized or eligible\ninsurer that provides stop loss coverage to a viatical settlement provider,\nviatical settlement purchaser, financing entity, special purpose entity or\nrelated provider trust; (iv) a natural person who enters into or effectuates no\nmore than one agreement in a calendar year for the transfer of life insurance\npolicies for any value less than the expected death benefit; (v) a financing\nentity; (vi) a special purpose entity; (vii) a related provider trust; (viii) a\nviatical settlement purchaser; or (ix) an accredited investor or qualified\ninstitutional buyer as defined respectively in Regulation D, Rule 501 or Rule\n144A of the Federal Securities Act of 1933, as amended, and who purchases a\nviaticated policy from a viatical settlement provider and does not communicate\nwith the viator or insured who is a resident of this Commonwealth except through\na licensee under this chapter.\n\t\t\t“Viatical settlement purchaser” means a person who gives a sum of\nmoney as consideration for a life insurance policy or an interest in the death\nbenefits of a life insurance policy, or a person who owns or acquires or is\nentitled to a beneficial interest in a trust that owns a viatical settlement\ncontract or is the beneficiary of a life insurance policy that has been or will\nbe the subject of a viatical settlement contract, for the purpose of deriving an\neconomic benefit. Viatical settlement purchaser does not include (i) a licensee\nunder this chapter; (ii) an accredited investor or qualified institutional buyer\nas defined respectively in Regulation D, Rule 501 or Rule 144A of the Federal\nSecurities Act of 1933, as amended; (iii) a financing entity; (iv) a special\npurpose entity; or (v) a related provider trust.\n\t\t\t“Viaticated policy” means a life insurance policy or certificate\nthat has been acquired by a viatical settlement provider pursuant to a viatical\nsettlement contract.\n\t\t\t“Viator” means the owner of a life insurance policy or a\ncertificate holder under a group policy who enters or seeks to enter into a\nviatical settlement contract. For the purposes of this chapter and the\napplication of Article 6.1 (§ 38.2-1865.1 et seq.) of Chapter 18 of this\ntitle, a viator shall not be limited to an owner of a life insurance policy or a\ncertificate holder under a group policy insuring the life of an individual with\na terminal or chronic illness except where specifically addressed. Viator does\nnot include (i) a licensee under this chapter; (ii) an accredited investor or\nqualified institutional buyer as defined respectively in Regulation D, Rule 501\nor Rule 144A of the Federal Securities Act of 1933, as amended; (iii) a\nfinancing entity; (iv) a special purpose entity; or (v) a related provider\ntrust.\n\nHISTORY: 1997, c. 814, \u00a7 38.2-5700; 2003, c. 717.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}