How do I determine whether the particular viatical settlements that I am selling constitute securities?
A. Whether or not a particular viatical investment constitutes a security depends on whether the investment is a passive investment whereby the investor is expecting to receive profits that is derived primarily from the efforts of a party or parties other than the investor. You are recommended to consult with your own legal counsel or a securities attorney so that the investment can be reviewed for compliance with state securities laws. The Securities Division cannot act as your legal counsel nor may it provide you with legal advice. We also recommend that you contact the viatical settlement company you are dealing with and have them contact us. We will work with the viatical settlement company to determine what issues need to be considered in determining whether they are in compliance with state securities laws.
