State RegulationsVA specificDifficulty 2/5
Under Virginia law, when may a viatical settlement broker seek or obtain compensation from the viator?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Va. Code § 38.2-1865.1 forbids a viatical settlement broker from seeking or obtaining compensation from the viator without the viator's written agreement, and that agreement must be obtained before the broker performs any services in connection with the viatical settlement. The sequencing matters: paper first, services second, compensation last. The rule protects terminally or chronically ill policyowners from after-the-fact fee claims, and the Virginia Bureau of Insurance enforces it as a condition of broker conduct.
Why the other options are wrong
- A) Reasonableness of the fee is not the statutory gate; the prior written agreement is.
- B) Compensation from the viator does not depend on the transaction closing or on the provider's payment.
- D) The provider's consent cannot substitute for the viator's own prior written agreement.
Memory hook
Paper first, services second, money last — the viator pays only by prior written deal.