State RegulationsPA specificDifficulty 2/5
A policyowner with a terminal illness asks who represents whom in a viatical settlement. Under 40 P.S. § 626.2, the party who negotiates on behalf of the policyowner — soliciting offers and arranging the sale of the policy — is the:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
40 P.S. § 626.2 assigns the roles by representation: the viatical settlement broker is the person who, for compensation, solicits or negotiates a viatical settlement on behalf of the policyowner, while the provider is the paying counterparty. The broker is therefore the policyowner's advocate in the marketplace, shopping the policy among providers and arranging the best available outcome — a role that carries its own license and disclosure duties under Pennsylvania's viatical settlement framework.
Why the other options are wrong
- A) Funding the payment is the provider's role; representation of the policyowner belongs to the broker.
- B) The issuing insurer administers the contract and takes no side in the settlement negotiation.
- D) Pennsylvania's viatical settlement law requires no court-appointed fiduciary; representation comes through the licensed broker.
Memory hook
Broker bargains for the owner; provider pays the bill.