Who regulates Viatical and/or Life Settlements?
In the USA, Viatical/Life Settlements are regulated by state Insurance Departments. Some states have enacted statutes addressing the sale of life insurance policies insuring non-terminally or chronically ill individuals and some only have laws that regulate the sale of life insurance policies insuring terminally or chronically ill individuals. Other states do not regulate the transactions at all. Of those states that regulate the transaction, most require both the Viatical/Life Settlement Broker (facilitator of the transaction) and Viatical/Life Settlement Provider (purchaser of the policy) to be licensed. Please click here for detailed state by state information. Outside the USA, there appears to be no regulation applying.
