State RegulationsPA specificDifficulty 1/5
Under 40 P.S. § 626.2, which party is the viatical settlement provider in a viatical settlement transaction?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
40 P.S. § 626.2 draws the key viatical definitions around the flow of money. The viatical settlement provider is the entity that pays the policyowner compensation for the assignment or sale of a life policy on an insured with a life-threatening or terminal condition. It is the buyer of the policy and the party that later becomes its owner and beneficiary — distinct from the broker who represents the seller and from the issuing insurer, which is not a transaction party at all.
Why the other options are wrong
- B) The negotiator acting for the policyowner is the viatical settlement broker under 40 P.S. § 626.2, not the provider.
- C) The issuing insurer neither buys nor sells the policy in a settlement; it simply administers the coverage after ownership changes.
- D) A certifying physician supplies medical evidence for the provider's offer but is not the party defined as the provider.
Memory hook
Provider pays — that is the whole definition.