State RegulationsNC specificDifficulty 2/5
Under G.S. 58-58-267, what must accompany viatical settlement applications and purchase agreements in North Carolina?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-58-267, viatical settlement applications and purchase agreements must carry the statutory fraud warning, which states that any person who knowingly presents false information in the transaction is guilty of a felony. The warning is specific to viatical transactions — North Carolina has no general fraud-warning statute for ordinary life and health applications.
Why the other options are wrong
- A) Tax treatment of proceeds is not the statutorily required content.
- B) The Commissioner does not guarantee viatical investments, and no such statement is required.
- D) No death-benefit waiver is part of the required viatical disclosures.
Memory hook
Viatical paperwork carries the felony warning — and only viatical paperwork.