{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-6008.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-6008.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-6008.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-6008.html"}],"law_id":63520,"edition_id":1,"section_id":63520,"structure_id":15429,"section_number":"38.2-6008","catch_line":"General rules","history":"2003, c. 717.","full_text":"A\n\nA viatical settlement provider entering into a viatical settlement contract shall:1\n\nFirst obtain:\n\t\t\t\ta. If the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constraint or undue influence to enter into a viatical settlement contract; and\n\t\t\t\tb. A document in which the insured consents to the release of his medical records to a viatical settlement provider, viatical settlement broker, and the insurance company that issued the life insurance policy covering the life of the insured. The consent for the release of medical records shall only be obtained for the insurance company if the life insurance policy covering the insured was issued within 48 months of the date of the viator’s application for the viatical settlement contract.2\n\nWithin 20 days after a viator executes documents necessary to transfer any rights under an insurance policy or within 20 days of entering any agreement, option, promise or any other form of understanding, expressed or implied, to viaticate the policy, the viatical settlement provider shall give written notice to the insurer that issued that insurance policy that the policy has or will become a viaticated policy. The notice shall be accompanied by the documents required by subdivision 3.3\n\nThe viatical settlement provider shall deliver a copy of the medical release required under subdivision 1 b of this subsection, a copy of the viator’s application for the viatical settlement contract, the notice required under subdivision 2, and a request for verification of coverage to the insurer that issued the life policy that is the subject of the viatical transaction. The verification form adopted by the NAIC shall be used unless standards for verification are developed by the Commission.4\n\nThe insurer shall respond to a request for verification of coverage submitted on an approved form by a viatical settlement provider not later than 30 calendar days after the date the request is received. The insurer shall complete and issue the verification of coverage to the viatical settlement provider or, in its response, the insurer shall indicate whether, based on the medical evidence and documents provided, the insurer intends to pursue an investigation regarding possible fraud or the validity of the insurance contract.5\n\nPrior to or at the time of execution of the viatical settlement contract, the viatical settlement provider shall obtain a witnessed document in which the viator consents to the viatical settlement contract, represents that the viator has a full and complete understanding of the viatical settlement contract, that he has a full and complete understanding of the benefits of the life insurance policy, acknowledges that he is entering into the viatical settlement contract freely and voluntarily and, for persons who are chronically or terminally ill, acknowledges that the insured has a terminal or chronic illness and that the terminal or chronic illness or condition was diagnosed after the life insurance policy was issued.6\n\nIf a viatical settlement broker performs any of these activities required of the viatical settlement provider, the provider is deemed to have fulfilled the requirements of this section.B\n\nAll medical information solicited or obtained by any licensee shall be subject to the applicable provisions of state law relating to privacy or confidentiality of medical information.C\n\nAll viatical settlement contracts entered into in this Commonwealth shall provide the viator with an unconditional right to rescind the contract for at least 15 calendar days from the receipt of the viatical settlement proceeds. If the insured dies during the rescission period, the viatical settlement contract shall be deemed to have been rescinded, subject to repayment to the viatical settlement provider or purchaser of all viatical settlement proceeds, and any premiums, loans, and loan interest that have been paid by the viatical settlement provider or purchaser.D\n\nThe viatical settlement provider shall instruct the viator to send the executed documents required to effect the change in ownership, assignment or change in beneficiary directly to the independent escrow agent. Within three business days after the date the escrow agent receives the documents, or from the date the viatical settlement provider receives the documents, if the viator erroneously provides the documents directly to the provider, the provider shall pay or transfer the proceeds of the viatical settlement into an escrow or trust account maintained in a state or federally-chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation. Upon payment of the settlement proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment, or change in beneficiary forms to the viatical settlement provider or related provider trust. Upon the escrow agent’s receipt of the acknowledgment of the properly completed transfer of ownership, assignment, or designation of beneficiary from the insurance company, the escrow agent shall pay the settlement proceeds to the viator.E\n\nFailure to tender consideration to the viator for the viatical settlement contract within the time disclosed pursuant to subdivision A 6 of § 38.2-6007 renders the viatical settlement contract voidable by the viator for lack of consideration until the time consideration is tendered to and accepted by the viator.F\n\nContacts with the insured for the purpose of determining the health status of the insured by the viatical settlement provider or viatical settlement broker after the viatical settlement has occurred shall only be made by the viatical settlement provider or broker licensed in this Commonwealth or its authorized representatives and shall be limited to once every three months for insureds with a life expectancy of more than one year, and to no more than once per month for insureds with a life expectancy of one year or less. The provider or broker shall explain the procedure for these contacts at the time the viatical settlement contract is entered into. The limitations set forth in this subsection shall not apply to any contacts with an insured for reasons other than determining the insured’s health status. Viatical settlement providers and viatical settlement brokers shall be responsible for the actions of their authorized representatives.","order_by":null,"text":{"0":{"id":231404,"text":"A viatical settlement provider entering into a viatical settlement contract shall:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":231405,"text":"First obtain:\n\t\t\t\ta. If the viator is the insured, a written statement from a licensed attending physician that the viator is of sound mind and under no constraint or undue influence to enter into a viatical settlement contract; and\n\t\t\t\tb. A document in which the insured consents to the release of his medical records to a viatical settlement provider, viatical settlement broker, and the insurance company that issued the life insurance policy covering the life of the insured. The consent for the release of medical records shall only be obtained for the insurance company if the life insurance policy covering the insured was issued within 48 months of the date of the viator’s application for the viatical settlement contract.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":231406,"text":"Within 20 days after a viator executes documents necessary to transfer any rights under an insurance policy or within 20 days of entering any agreement, option, promise or any other form of understanding, expressed or implied, to viaticate the policy, the viatical settlement provider shall give written notice to the insurer that issued that insurance policy that the policy has or will become a viaticated policy. The notice shall be accompanied by the documents required by subdivision 3.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":231407,"text":"The viatical settlement provider shall deliver a copy of the medical release required under subdivision 1 b of this subsection, a copy of the viator’s application for the viatical settlement contract, the notice required under subdivision 2, and a request for verification of coverage to the insurer that issued the life policy that is the subject of the viatical transaction. The verification form adopted by the NAIC shall be used unless standards for verification are developed by the Commission.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":231408,"text":"The insurer shall respond to a request for verification of coverage submitted on an approved form by a viatical settlement provider not later than 30 calendar days after the date the request is received. The insurer shall complete and issue the verification of coverage to the viatical settlement provider or, in its response, the insurer shall indicate whether, based on the medical evidence and documents provided, the insurer intends to pursue an investigation regarding possible fraud or the validity of the insurance contract.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":231409,"text":"Prior to or at the time of execution of the viatical settlement contract, the viatical settlement provider shall obtain a witnessed document in which the viator consents to the viatical settlement contract, represents that the viator has a full and complete understanding of the viatical settlement contract, that he has a full and complete understanding of the benefits of the life insurance policy, acknowledges that he is entering into the viatical settlement contract freely and voluntarily and, for persons who are chronically or terminally ill, acknowledges that the insured has a terminal or chronic illness and that the terminal or chronic illness or condition was diagnosed after the life insurance policy was issued.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":231410,"text":"If a viatical settlement broker performs any of these activities required of the viatical settlement provider, the provider is deemed to have fulfilled the requirements of this section.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"7":{"id":231411,"text":"All medical information solicited or obtained by any licensee shall be subject to the applicable provisions of state law relating to privacy or confidentiality of medical information.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6","next_prefix":"C"},"8":{"id":231412,"text":"All viatical settlement contracts entered into in this Commonwealth shall provide the viator with an unconditional right to rescind the contract for at least 15 calendar days from the receipt of the viatical settlement proceeds. If the insured dies during the rescission period, the viatical settlement contract shall be deemed to have been rescinded, subject to repayment to the viatical settlement provider or purchaser of all viatical settlement proceeds, and any premiums, loans, and loan interest that have been paid by the viatical settlement provider or purchaser.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"9":{"id":231413,"text":"The viatical settlement provider shall instruct the viator to send the executed documents required to effect the change in ownership, assignment or change in beneficiary directly to the independent escrow agent. Within three business days after the date the escrow agent receives the documents, or from the date the viatical settlement provider receives the documents, if the viator erroneously provides the documents directly to the provider, the provider shall pay or transfer the proceeds of the viatical settlement into an escrow or trust account maintained in a state or federally-chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation. Upon payment of the settlement proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment, or change in beneficiary forms to the viatical settlement provider or related provider trust. Upon the escrow agent’s receipt of the acknowledgment of the properly completed transfer of ownership, assignment, or designation of beneficiary from the insurance company, the escrow agent shall pay the settlement proceeds to the viator.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"10":{"id":231414,"text":"Failure to tender consideration to the viator for the viatical settlement contract within the time disclosed pursuant to subdivision A 6 of § 38.2-6007 renders the viatical settlement contract voidable by the viator for lack of consideration until the time consideration is tendered to and accepted by the viator.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"11":{"id":231415,"text":"Contacts with the insured for the purpose of determining the health status of the insured by the viatical settlement provider or viatical settlement broker after the viatical settlement has occurred shall only be made by the viatical settlement provider or broker licensed in this Commonwealth or its authorized representatives and shall be limited to once every three months for insureds with a life expectancy of more than one year, and to no more than once per month for insureds with a life expectancy of one year or less. The provider or broker shall explain the procedure for these contacts at the time the viatical settlement contract is entered into. The limitations set forth in this subsection shall not apply to any contacts with an insured for reasons other than determining the insured’s health status. Viatical settlement providers and viatical settlement brokers shall be responsible for the actions of their authorized representatives.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-6008\/","history_text":"

This law was first created in 2003. The record of its establishment is cataloged in chapter 717<\/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.<\/p>","references":[{"id":83681,"section_number":"38.2-6007","catch_line":"Disclosure","order_by":null,"url":"\/38.2-6007\/"},{"id":73158,"section_number":"38.2-6009","catch_line":"Prohibited practices","order_by":null,"url":"\/38.2-6009\/"}],"refers_to":[{"id":83681,"section_number":"38.2-6007","catch_line":"Disclosure","order_by":null,"url":"\/38.2-6007\/"}],"permalink":{"id":218197,"object_type":"law","relational_id":63520,"identifier":"38.2-6008","token":"38.2\/60\/38.2-6008","url":"\/38.2-6008\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-6008\/","token":"38.2\/60\/38.2-6008","dublin_core":{"Title":"General rules","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-6008","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A viatical settlement provider<\/span> entering into a viatical settlement contract<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> First obtain:\n\t\t\t\ta. If the viator<\/span> is the insured, a written statement from a licensed attending physician that the viator<\/span> is of sound mind and under no constraint or undue influence to enter into a viatical settlement contract<\/span>; and\n\t\t\t\tb. A document in which the insured consents to the release of his medical records to a viatical settlement provider<\/span>, viatical settlement broker<\/span>, and the insurance company<\/span> that issued the life insurance policy<\/span> covering the life of the insured. The consent for the release of medical records shall only be obtained for the insurance company<\/span> if the life insurance policy<\/span> covering the insured was issued within 48 months of the date of the viator<\/span>’s application for the viatical settlement contract<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Within 20 days after a viator<\/span> executes documents necessary to transfer any rights under an insurance policy or within 20 days of entering any agreement, option, promise or any other form of understanding, expressed or implied, to viaticate the policy, the viatical settlement provider<\/span> shall give written notice to the insurer<\/span> that issued that insurance policy that the policy has or will become a viaticated policy<\/span>. The notice shall be accompanied by the documents required by subdivision 3. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The viatical settlement provider<\/span> shall deliver a copy of the medical release required under subdivision 1 b of this subsection, a copy of the viator<\/span>’s application for the viatical settlement contract<\/span>, the notice required under subdivision 2, and a request for verification of coverage to the insurer<\/span> that issued the life policy that is the subject of the viatical transaction. The verification form adopted by the NAIC<\/span> shall be used unless standards for verification are developed by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The insurer<\/span> shall respond to a request for verification of coverage submitted on an approved form by a viatical settlement provider<\/span> not later than 30 calendar days after the date the request is received. The insurer<\/span> shall complete and issue<\/span> the verification of coverage to the viatical settlement provider<\/span> or, in its response, the insurer<\/span> shall indicate whether, based on the medical evidence<\/span> and documents provided, the insurer<\/span> intends to pursue an investigation regarding possible fraud<\/span> or the validity of the insurance contract. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Prior to or at the time of execution of the viatical settlement contract<\/span>, the viatical settlement provider<\/span> shall obtain a witnessed document in which the viator<\/span> consents to the viatical settlement contract<\/span>, represents that the viator<\/span> has a full and complete understanding of the viatical settlement contract<\/span>, that he has a full and complete understanding of the benefits of the life insurance policy, acknowledges that he is entering into the viatical settlement contract<\/span> freely and voluntarily and, for persons<\/span> who are chronically or terminally ill<\/span>, acknowledges that the insured has a terminal or chronic illness and that the terminal or chronic illness or condition was diagnosed after the life insurance policy was issued. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> If a viatical settlement broker<\/span> performs any of these activities required of the viatical settlement provider<\/span>, the provider is deemed to have fulfilled the requirements of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> All medical information solicited or obtained by any licensee shall be subject to the applicable provisions of state<\/span> law<\/span> relating to privacy or confidentiality of medical information. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> All viatical settlement contracts<\/span><\/span> entered into in this Commonwealth shall provide the viator<\/span> with an unconditional right to rescind the contract for at least 15 calendar days from the receipt of the viatical settlement proceeds. If the insured dies during the rescission period, the viatical settlement contract<\/span> shall be deemed to have been rescinded, subject to repayment to the viatical settlement provider<\/span> or purchaser of all viatical settlement proceeds, and any premiums, loans, and loan interest that have been paid by the viatical settlement provider<\/span> or purchaser. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The viatical settlement provider<\/span> shall instruct the viator<\/span> to send the executed documents required to effect the change in ownership, assignment or change in beneficiary directly to the independent escrow agent. Within three business days after the date the escrow agent receives the documents, or from the date the viatical settlement provider<\/span> receives the documents, if the viator<\/span> erroneously provides the documents directly to the provider, the provider shall pay or transfer the proceeds of the viatical settlement into an escrow or trust account maintained in a state<\/span> or federally-chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation. Upon payment of the settlement proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment, or change in beneficiary forms to the viatical settlement provider<\/span> or related provider trust<\/span>. Upon the escrow agent’s receipt of the acknowledgment of the properly completed transfer of ownership, assignment, or designation of beneficiary from the insurance company<\/span>, the escrow agent shall pay the settlement proceeds to the viator<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Failure to tender consideration to the viator<\/span> for the viatical settlement contract<\/span> within the time disclosed pursuant to subdivision A 6 of § 38.2-6007<\/a> renders the viatical settlement contract<\/span> voidable by the viator<\/span> for lack of consideration until the time consideration is tendered to and accepted by the viator<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Contacts with the insured for the purpose of determining the health status of the insured by the viatical settlement provider<\/span> or viatical settlement broker<\/span> after the viatical settlement has occurred shall only be made by the viatical settlement provider<\/span> or broker licensed in this Commonwealth or its authorized representatives and shall be limited to once every three months for insureds with a life expectancy of more than one year, and to no more than once per month for insureds with a life expectancy of one year or less. The provider or broker shall explain the procedure for these contacts at the time the viatical settlement contract<\/span> is entered into. The limitations set forth in this subsection shall not apply to any contacts with an insured for reasons other than determining the insured’s health status. Viatical settlement providers<\/span> and viatical settlement brokers<\/span> shall be responsible for the actions of their authorized representatives. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nGENERAL RULES (\u00a7 38.2-6008)\n\nA. A viatical settlement provider entering into a viatical settlement contract\nshall:\n\n 1. First obtain:\n \t\t\t\ta. If the viator is the insured, a written statement from a licensed\n attending physician that the viator is of sound mind and under no constraint\n or undue influence to enter into a viatical settlement contract; and\n \t\t\t\tb. A document in which the insured consents to the release of his medical\n records to a viatical settlement provider, viatical settlement broker, and the\n insurance company that issued the life insurance policy covering the life of\n the insured. The consent for the release of medical records shall only be\n obtained for the insurance company if the life insurance policy covering the\n insured was issued within 48 months of the date of the viator’s\n application for the viatical settlement contract.\n\n 2. Within 20 days after a viator executes documents necessary to transfer any\n rights under an insurance policy or within 20 days of entering any agreement,\n option, promise or any other form of understanding, expressed or implied, to\n viaticate the policy, the viatical settlement provider shall give written\n notice to the insurer that issued that insurance policy that the policy has or\n will become a viaticated policy. The notice shall be accompanied by the\n documents required by subdivision 3.\n\n 3. The viatical settlement provider shall deliver a copy of the medical\n release required under subdivision 1 b of this subsection, a copy of the\n viator’s application for the viatical settlement contract, the notice\n required under subdivision 2, and a request for verification of coverage to\n the insurer that issued the life policy that is the subject of the viatical\n transaction. The verification form adopted by the NAIC shall be used unless\n standards for verification are developed by the Commission.\n\n 4. The insurer shall respond to a request for verification of coverage\n submitted on an approved form by a viatical settlement provider not later than\n 30 calendar days after the date the request is received. The insurer shall\n complete and issue the verification of coverage to the viatical settlement\n provider or, in its response, the insurer shall indicate whether, based on the\n medical evidence and documents provided, the insurer intends to pursue an\n investigation regarding possible fraud or the validity of the insurance\n contract.\n\n 5. Prior to or at the time of execution of the viatical settlement contract,\n the viatical settlement provider shall obtain a witnessed document in which\n the viator consents to the viatical settlement contract, represents that the\n viator has a full and complete understanding of the viatical settlement\n contract, that he has a full and complete understanding of the benefits of the\n life insurance policy, acknowledges that he is entering into the viatical\n settlement contract freely and voluntarily and, for persons who are\n chronically or terminally ill, acknowledges that the insured has a terminal or\n chronic illness and that the terminal or chronic illness or condition was\n diagnosed after the life insurance policy was issued.\n\n 6. If a viatical settlement broker performs any of these activities required\n of the viatical settlement provider, the provider is deemed to have fulfilled\n the requirements of this section.\n\nB. All medical information solicited or obtained by any licensee shall be\nsubject to the applicable provisions of state law relating to privacy or\nconfidentiality of medical information.\n\nC. All viatical settlement contracts entered into in this Commonwealth shall\nprovide the viator with an unconditional right to rescind the contract for at\nleast 15 calendar days from the receipt of the viatical settlement proceeds. If\nthe insured dies during the rescission period, the viatical settlement contract\nshall be deemed to have been rescinded, subject to repayment to the viatical\nsettlement provider or purchaser of all viatical settlement proceeds, and any\npremiums, loans, and loan interest that have been paid by the viatical\nsettlement provider or purchaser.\n\nD. The viatical settlement provider shall instruct the viator to send the\nexecuted documents required to effect the change in ownership, assignment or\nchange in beneficiary directly to the independent escrow agent. Within three\nbusiness days after the date the escrow agent receives the documents, or from\nthe date the viatical settlement provider receives the documents, if the viator\nerroneously provides the documents directly to the provider, the provider shall\npay or transfer the proceeds of the viatical settlement into an escrow or trust\naccount maintained in a state or federally-chartered financial institution whose\ndeposits are insured by the Federal Deposit Insurance Corporation. Upon payment\nof the settlement proceeds into the escrow account, the escrow agent shall\ndeliver the original change in ownership, assignment, or change in beneficiary\nforms to the viatical settlement provider or related provider trust. Upon the\nescrow agent’s receipt of the acknowledgment of the properly completed\ntransfer of ownership, assignment, or designation of beneficiary from the\ninsurance company, the escrow agent shall pay the settlement proceeds to the\nviator.\n\nE. Failure to tender consideration to the viator for the viatical settlement\ncontract within the time disclosed pursuant to subdivision A 6 of §\n38.2-6007 renders the viatical settlement contract voidable by the viator for\nlack of consideration until the time consideration is tendered to and accepted\nby the viator.\n\nF. Contacts with the insured for the purpose of determining the health status of\nthe insured by the viatical settlement provider or viatical settlement broker\nafter the viatical settlement has occurred shall only be made by the viatical\nsettlement provider or broker licensed in this Commonwealth or its authorized\nrepresentatives and shall be limited to once every three months for insureds\nwith a life expectancy of more than one year, and to no more than once per month\nfor insureds with a life expectancy of one year or less. The provider or broker\nshall explain the procedure for these contacts at the time the viatical\nsettlement contract is entered into. The limitations set forth in this\nsubsection shall not apply to any contacts with an insured for reasons other\nthan determining the insured’s health status. Viatical settlement\nproviders and viatical settlement brokers shall be responsible for the actions\nof their authorized representatives.\n\nHISTORY: 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}}