{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-6007.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-6007.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-6007.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-6007.html"}],"law_id":83681,"edition_id":1,"section_id":83681,"structure_id":15429,"section_number":"38.2-6007","catch_line":"Disclosure","history":"1997, c. 814, \u00a7 38.2-5705; 2003, c. 717.","full_text":"A\n\nBefore asking a viator or insured to sign any document, a licensee under this chapter shall provide the respective viator or insured, or both, with a copy of the disclosure document described in this subsection. The viatical settlement provider or viatical settlement broker shall provide the viator with an additional copy of the disclosures, with the application, no later than the time the application for the viatical settlement contract is signed by all parties. The disclosures shall be provided in a separate document that is signed by the viator and the viatical settlement provider or viatical settlement broker, and shall provide the following information:1\n\nThere are possible alternatives to viatical settlement contracts including any accelerated death benefits or policy loans offered under the viator’s life insurance policy.2\n\nSome or all of the proceeds of the viatical settlement may be taxable under federal income tax and state franchise and income taxes, and assistance should be sought from a professional tax advisor.3\n\nProceeds of the viatical settlement could be subject to the claims of creditors.4\n\nReceipt of the proceeds of a viatical settlement may adversely affect the viator’s eligibility for Medicaid or other government benefits or entitlements, and advice should be obtained from the appropriate government agencies.5\n\nThe viator has the right to rescind a viatical settlement contract for 15 calendar days after the receipt of the viatical settlement proceeds by the viator, as provided in subsection C of § 38.2-6008. If the insured dies during the rescission period, the settlement contract shall be deemed to have been rescinded, subject to repayment of all viatical settlement proceeds and any premiums, loans, and loan interest to the viatical settlement provider or viatical settlement purchaser.6\n\nFunds will be sent to the viator within three business days after the viatical settlement provider has received the insurer’s or group administrator’s acknowledgment that ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated.7\n\nEntering into a viatical settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy or certificate, to be forfeited by the viator. Assistance should be sought from a financial adviser.8\n\nDisclosure to a viator shall include distribution of a brochure describing the process of viatical settlements. The NAIC’s form for the brochure shall be used unless one is developed by the Commission.9\n\nThe disclosure document shall contain the following language: “All medical, financial, or personal information solicited or obtained by a viatical settlement provider or viatical settlement broker about an insured, including the insured’s identity or the identity of family members, a spouse, or a significant other may be disclosed as necessary to effect the viatical settlement between the viator and the viatical settlement provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share information every two years.”10\n\nThe insured may be contacted by either the viatical settlement provider or broker or its authorized representative for the purpose of determining the insured’s health status. This contact is limited to once every three months if the insured has a life expectancy of more than one year, and no more than once per month if the insured has a life expectancy of one year or less.B\n\nA viatical settlement provider shall provide the viator with at least the following disclosures no later than the date the viatical settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in the viatical settlement contract or in a separate document signed by the viator and the viatical settlement provider or viatical settlement broker, and provide the following information:1\n\nThe affiliation, if any, between the viatical settlement provider and the issuer of the insurance policy to be viaticated;2\n\nThe name, address, and telephone number of the viatical settlement provider;3\n\nThe dollar amount of the current death benefit payable to the viatical settlement provider under the policy or certificate. If known, the viatical settlement provider shall also disclose the availability of any additional guaranteed insurance benefits, the dollar amount of any accidental death and dismemberment benefits under the policy or certificate, and the viatical settlement provider’s interest in those benefits;4\n\nState the name, business address, and telephone number of the independent third party escrow agent, and the fact that the viator or owner may inspect or receive copies of the relevant escrow or trust agreements or documents; and5\n\nIf an insurance policy to be viaticated has been issued as a joint policy or involves family riders or any coverage of a life other than the insured under the policy to be viaticated, the viator shall be informed of the possible loss of coverage on the other lives under the policy and shall be advised to consult with his insurance producer or the insurer issuing the policy for advice on the proposed viatical settlement.C\n\nIf the provider transfers ownership or changes the beneficiary of the insurance policy, the provider shall communicate the change in ownership or beneficiary to the insured within 20 days after the change.","order_by":null,"text":{"0":{"id":299943,"text":"Before asking a viator or insured to sign any document, a licensee under this chapter shall provide the respective viator or insured, or both, with a copy of the disclosure document described in this subsection. The viatical settlement provider or viatical settlement broker shall provide the viator with an additional copy of the disclosures, with the application, no later than the time the application for the viatical settlement contract is signed by all parties. The disclosures shall be provided in a separate document that is signed by the viator and the viatical settlement provider or viatical settlement broker, and shall provide the following information:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":299944,"text":"There are possible alternatives to viatical settlement contracts including any accelerated death benefits or policy loans offered under the viator’s life insurance policy.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":299945,"text":"Some or all of the proceeds of the viatical settlement may be taxable under federal income tax and state franchise and income taxes, and assistance should be sought from a professional tax advisor.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":299946,"text":"Proceeds of the viatical settlement could be subject to the claims of creditors.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":299947,"text":"Receipt of the proceeds of a viatical settlement may adversely affect the viator’s eligibility for Medicaid or other government benefits or entitlements, and advice should be obtained from the appropriate government agencies.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":299948,"text":"The viator has the right to rescind a viatical settlement contract for 15 calendar days after the receipt of the viatical settlement proceeds by the viator, as provided in subsection C of § 38.2-6008. If the insured dies during the rescission period, the settlement contract shall be deemed to have been rescinded, subject to repayment of all viatical settlement proceeds and any premiums, loans, and loan interest to the viatical settlement provider or viatical settlement purchaser.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":299949,"text":"Funds will be sent to the viator within three business days after the viatical settlement provider has received the insurer’s or group administrator’s acknowledgment that ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":299950,"text":"Entering into a viatical settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy or certificate, to be forfeited by the viator. Assistance should be sought from a financial adviser.","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"8":{"id":299951,"text":"Disclosure to a viator shall include distribution of a brochure describing the process of viatical settlements. The NAIC’s form for the brochure shall be used unless one is developed by the Commission.","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"A9"},"9":{"id":299952,"text":"The disclosure document shall contain the following language: “All medical, financial, or personal information solicited or obtained by a viatical settlement provider or viatical settlement broker about an insured, including the insured’s identity or the identity of family members, a spouse, or a significant other may be disclosed as necessary to effect the viatical settlement between the viator and the viatical settlement provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy or provides funds for the purchase. You may be asked to renew your permission to share information every two years.”","type":"section","prefixes":["A","9"],"prefix":"9","entire_prefix":"A9","prefix_anchor":"A9","level":2,"prior_prefix":"A8","next_prefix":"A10"},"10":{"id":299953,"text":"The insured may be contacted by either the viatical settlement provider or broker or its authorized representative for the purpose of determining the insured’s health status. This contact is limited to once every three months if the insured has a life expectancy of more than one year, and no more than once per month if the insured has a life expectancy of one year or less.","type":"section","prefixes":["A","10"],"prefix":"10","entire_prefix":"A10","prefix_anchor":"A10","level":2,"prior_prefix":"A9","next_prefix":"B"},"11":{"id":299954,"text":"A viatical settlement provider shall provide the viator with at least the following disclosures no later than the date the viatical settlement contract is signed by all parties. The disclosures shall be conspicuously displayed in the viatical settlement contract or in a separate document signed by the viator and the viatical settlement provider or viatical settlement broker, and provide the following information:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A10","next_prefix":"B1"},"12":{"id":299955,"text":"The affiliation, if any, between the viatical settlement provider and the issuer of the insurance policy to be viaticated;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"13":{"id":299956,"text":"The name, address, and telephone number of the viatical settlement provider;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"14":{"id":299957,"text":"The dollar amount of the current death benefit payable to the viatical settlement provider under the policy or certificate. If known, the viatical settlement provider shall also disclose the availability of any additional guaranteed insurance benefits, the dollar amount of any accidental death and dismemberment benefits under the policy or certificate, and the viatical settlement provider’s interest in those benefits;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"15":{"id":299958,"text":"State the name, business address, and telephone number of the independent third party escrow agent, and the fact that the viator or owner may inspect or receive copies of the relevant escrow or trust agreements or documents; and","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"16":{"id":299959,"text":"If an insurance policy to be viaticated has been issued as a joint policy or involves family riders or any coverage of a life other than the insured under the policy to be viaticated, the viator shall be informed of the possible loss of coverage on the other lives under the policy and shall be advised to consult with his insurance producer or the insurer issuing the policy for advice on the proposed viatical settlement.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"C"},"17":{"id":299960,"text":"If the provider transfers ownership or changes the beneficiary of the insurance policy, the provider shall communicate the change in ownership or beneficiary to the insured within 20 days after the change.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B5"}},"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}],"previous_section":{"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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-6007\/","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":63520,"section_number":"38.2-6008","catch_line":"General rules","order_by":null,"url":"\/38.2-6008\/"}],"refers_to":[{"id":63520,"section_number":"38.2-6008","catch_line":"General rules","order_by":null,"url":"\/38.2-6008\/"}],"permalink":{"id":218193,"object_type":"law","relational_id":83681,"identifier":"38.2-6007","token":"38.2\/60\/38.2-6007","url":"\/38.2-6007\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-6007\/","token":"38.2\/60\/38.2-6007","dublin_core":{"Title":"Disclosure","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-6007","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Before asking a viator<\/span> or insured to sign any document, a licensee under this chapter<\/span> shall provide the respective viator<\/span> or insured, or both, with a copy of the disclosure document described in this subsection. The viatical settlement provider<\/span> or viatical settlement broker<\/span> shall provide the viator<\/span> with an additional copy of the disclosures, with the application, no later than the time the application for the viatical settlement contract<\/span> is signed by all parties. The disclosures shall be provided in a separate document that is signed by the viator<\/span> and the viatical settlement provider<\/span> or viatical settlement broker<\/span>, and shall provide the following information: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> There are possible alternatives to viatical settlement contracts<\/span><\/span> including any accelerated death benefits or policy<\/span> loans offered under the viator<\/span>’s life insurance<\/span> policy<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Some or all of the proceeds of the viatical settlement may be taxable under federal income tax and state<\/span> franchise and income taxes, and assistance should be sought from a professional tax advisor. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Proceeds of the viatical settlement could be subject to the claims of creditors<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Receipt of the proceeds of a viatical settlement may adversely affect the viator<\/span>’s eligibility for Medicaid or other government benefits or entitlements, and advice should be obtained from the appropriate government agencies. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The viator<\/span> has the right to rescind a viatical settlement contract<\/span> for 15 calendar days after the receipt of the viatical settlement proceeds by the viator<\/span>, as provided in subsection C of § 38.2-6008<\/a>. If the insured dies during the rescission period, the settlement contract shall be deemed to have been rescinded, subject to repayment of all viatical settlement proceeds and any premiums, loans, and loan interest to the viatical settlement provider<\/span> or viatical settlement purchaser<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Funds will be sent to the viator<\/span> within three business days after the viatical settlement provider<\/span> has received the insurer<\/span>’s or group administrator’s acknowledgment that ownership of the policy<\/span> or interest in the certificate has been transferred and the beneficiary has been designated. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Entering into a viatical settlement contract<\/span> may cause other rights or benefits, including conversion rights and waiver<\/span> of premium benefits that may exist under the policy<\/span> or certificate, to be forfeited by the viator<\/span>. Assistance should be sought from a financial adviser. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Disclosure to a viator<\/span> shall include distribution of a brochure describing the process of viatical settlements<\/span>. The NAIC<\/span>’s form for the brochure shall be used unless one is developed by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> The disclosure document shall contain the following language: “All medical, financial, or personal information solicited or obtained by a viatical settlement provider<\/span> or viatical settlement broker<\/span> about an insured, including the insured’s identity or the identity of family members, a spouse, or a significant other may be disclosed as necessary to effect the viatical settlement between the viator<\/span> and the viatical settlement provider<\/span>. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be provided to someone who buys the policy<\/span> or provides funds for the purchase. You may be asked to renew your permission to share information every two years.” <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> The insured may be contacted by either the viatical settlement provider<\/span> or broker or its authorized representative for the purpose of determining the insured’s health status. This contact is limited to once every three months if the insured has a life expectancy of more than one year, and no more than once per month if the insured has a life expectancy of one year or less. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A viatical settlement provider<\/span> shall provide the viator<\/span> with at least the following disclosures no later than the date the viatical settlement contract<\/span> is signed by all parties. The disclosures shall be conspicuously displayed in the viatical settlement contract<\/span> or in a separate document signed by the viator<\/span> and the viatical settlement provider<\/span> or viatical settlement broker<\/span>, and provide the following information: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The affiliation, if any, between the viatical settlement provider<\/span> and the issuer of the insurance<\/span> policy<\/span> to be viaticated; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The name, address, and telephone number of the viatical settlement provider<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The dollar amount of the current death benefit payable to the viatical settlement provider<\/span> under the policy<\/span> or certificate. If known, the viatical settlement provider<\/span> shall also disclose the availability of any additional guaranteed insurance<\/span> benefits, the dollar amount of any accidental death and dismemberment benefits under the policy<\/span> or certificate, and the viatical settlement provider<\/span>’s interest in those benefits; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> State<\/span> the name, business address, and telephone number of the independent third party<\/span> escrow agent, and the fact<\/span> that the viator<\/span> or owner may inspect or receive copies of the relevant escrow or trust agreements or documents; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> If an insurance<\/span> policy<\/span> to be viaticated has been issued as a joint policy<\/span> or involves family riders or any coverage of a life other than the insured under the policy<\/span> to be viaticated, the viator<\/span> shall be informed of the possible loss of coverage on the other lives under the policy<\/span> and shall be advised to consult with his insurance<\/span> producer or the insurer<\/span> issuing the policy<\/span> for advice on the proposed viatical settlement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If the provider transfers ownership or changes the beneficiary of the insurance<\/span> policy<\/span>, the provider shall communicate the change in ownership or beneficiary to the insured within 20 days after the change. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDISCLOSURE (\u00a7 38.2-6007)\n\nA. Before asking a viator or insured to sign any document, a licensee under this\nchapter shall provide the respective viator or insured, or both, with a copy of\nthe disclosure document described in this subsection. The viatical settlement\nprovider or viatical settlement broker shall provide the viator with an\nadditional copy of the disclosures, with the application, no later than the time\nthe application for the viatical settlement contract is signed by all parties.\nThe disclosures shall be provided in a separate document that is signed by the\nviator and the viatical settlement provider or viatical settlement broker, and\nshall provide the following information:\n\n 1. There are possible alternatives to viatical settlement contracts including\n any accelerated death benefits or policy loans offered under the\n viator’s life insurance policy.\n\n 2. Some or all of the proceeds of the viatical settlement may be taxable under\n federal income tax and state franchise and income taxes, and assistance should\n be sought from a professional tax advisor.\n\n 3. Proceeds of the viatical settlement could be subject to the claims of\n creditors.\n\n 4. Receipt of the proceeds of a viatical settlement may adversely affect the\n viator’s eligibility for Medicaid or other government benefits or\n entitlements, and advice should be obtained from the appropriate government\n agencies.\n\n 5. The viator has the right to rescind a viatical settlement contract for 15\n calendar days after the receipt of the viatical settlement proceeds by the\n viator, as provided in subsection C of § 38.2-6008. If the insured dies\n during the rescission period, the settlement contract shall be deemed to have\n been rescinded, subject to repayment of all viatical settlement proceeds and\n any premiums, loans, and loan interest to the viatical settlement provider or\n viatical settlement purchaser.\n\n 6. Funds will be sent to the viator within three business days after the\n viatical settlement provider has received the insurer’s or group\n administrator’s acknowledgment that ownership of the policy or interest\n in the certificate has been transferred and the beneficiary has been\n designated.\n\n 7. Entering into a viatical settlement contract may cause other rights or\n benefits, including conversion rights and waiver of premium benefits that may\n exist under the policy or certificate, to be forfeited by the viator.\n Assistance should be sought from a financial adviser.\n\n 8. Disclosure to a viator shall include distribution of a brochure describing\n the process of viatical settlements. The NAIC’s form for the brochure\n shall be used unless one is developed by the Commission.\n\n 9. The disclosure document shall contain the following language: “All\n medical, financial, or personal information solicited or obtained by a\n viatical settlement provider or viatical settlement broker about an insured,\n including the insured’s identity or the identity of family members, a\n spouse, or a significant other may be disclosed as necessary to effect the\n viatical settlement between the viator and the viatical settlement provider.\n If you are asked to provide this information, you will be asked to consent to\n the disclosure. The information may be provided to someone who buys the policy\n or provides funds for the purchase. You may be asked to renew your permission\n to share information every two years.”\n\n 10. The insured may be contacted by either the viatical settlement provider or\n broker or its authorized representative for the purpose of determining the\n insured’s health status. This contact is limited to once every three\n months if the insured has a life expectancy of more than one year, and no more\n than once per month if the insured has a life expectancy of one year or less.\n\nB. A viatical settlement provider shall provide the viator with at least the\nfollowing disclosures no later than the date the viatical settlement contract is\nsigned by all parties. The disclosures shall be conspicuously displayed in the\nviatical settlement contract or in a separate document signed by the viator and\nthe viatical settlement provider or viatical settlement broker, and provide the\nfollowing information:\n\n 1. The affiliation, if any, between the viatical settlement provider and the\n issuer of the insurance policy to be viaticated;\n\n 2. The name, address, and telephone number of the viatical settlement\n provider;\n\n 3. The dollar amount of the current death benefit payable to the viatical\n settlement provider under the policy or certificate. If known, the viatical\n settlement provider shall also disclose the availability of any additional\n guaranteed insurance benefits, the dollar amount of any accidental death and\n dismemberment benefits under the policy or certificate, and the viatical\n settlement provider’s interest in those benefits;\n\n 4. State the name, business address, and telephone number of the independent\n third party escrow agent, and the fact that the viator or owner may inspect or\n receive copies of the relevant escrow or trust agreements or documents; and\n\n 5. If an insurance policy to be viaticated has been issued as a joint policy\n or involves family riders or any coverage of a life other than the insured\n under the policy to be viaticated, the viator shall be informed of the\n possible loss of coverage on the other lives under the policy and shall be\n advised to consult with his insurance producer or the insurer issuing the\n policy for advice on the proposed viatical settlement.\n\nC. If the provider transfers ownership or changes the beneficiary of the\ninsurance policy, the provider shall communicate the change in ownership or\nbeneficiary to the insured within 20 days after the change.\n\nHISTORY: 1997, c. 814, \u00a7 38.2-5705; 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}}