Connecticut Administrative Code
Title 38a - Insurance Department
465 - Viatical Settlements
Section 38a-465-5 - Evaluation standards for reasonable payments

(a) A broker or provider shall not enter into a life settlement contract that provides payment to the owner that is unreasonable, unjust or inequitable. In determining whether a payment is unreasonable, unjust or inequitable, the Commissioner may consider, among other factors, the life expectancy of the insured, the applicable rating of the insurance company that issued the subject policy by a rating service generally recognized by the insurance industry, regulators and consumer groups and the prevailing discount rates in the life settlement contract market in Connecticut, or if sufficient data is unavailable for Connecticut, the prevailing discount rates nationally or in other states that maintain this data; and

(b) A provider shall not use a longer life expectancy than is realistic in order to reduce the payout to which the owner is entitled.