State RegulationsOH specificDifficulty 1/5
A Dayton resident with a life-threatening condition is considering selling her life insurance policy. Under Ohio law, which party qualifies as a "viatical settlement provider"?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
ORC 3916.01(P) defines a viatical settlement provider as the party that purchases a life insurance policy from a viator (or otherwise becomes the owner or beneficiary of a policy insuring a person with a life-threatening or chronic condition) in a viatical settlement. The provider is the buyer of the policy and pays the viator the settlement proceeds.
Why the other options are wrong
- A) That describes a viatical settlement broker, who negotiates for the viator and must be licensed; the broker does not purchase the policy.
- C) A physician may supply medical information used in pricing the offer, but plays no purchasing role under ORC 3916.01.
- D) The Ohio Department of Insurance regulates viatical settlements, but the regulator is not a provider.
Memory hook
Provider provides the money — the provider buys the policy.