State RegulationsNC specificDifficulty 1/5
Under North Carolina insurance law, which description best fits a viatical settlement provider?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under G.S. 58-58-205(11) and the viatical provisions of Article 58, a viatical settlement provider is the party on the paying side of a viatical settlement: it pays a policyowner consideration to obtain an interest in a life policy as an investment, or purchases policies from owners who are terminally or chronically ill. The provider steps into the economic position of the policy rather than issuing or guaranteeing coverage.
Why the other options are wrong
- A) Accelerated death benefit riders are benefits paid by the issuing insurer under its own policy; they do not make the insurer a viatical settlement provider.
- B) Guaranteeing policy benefits is the role of the life and health insurance guaranty association, which has nothing to do with viatical settlements.
- D) A producer who sells only Medicare supplement policies is a licensed sales intermediary, not a purchaser of existing life policies for settlement.
Memory hook
Viatical provider = the buyer on the other side of a sick policyowner's sale.