New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 4 - ACTUARIAL SERVICES
Subchapter 35 - VIATICAL SETTLEMENTS
Section 11:4-35.10 - Standards for evaluation of reasonable viatical settlement proceeds

(a) Viatical settlement providers and viatical settlement brokers are prohibited from entering into viatical settlements with viators who are insured policyowners or certificateholders of individual or group life insurance policies containing accelerated death benefit provisions or riders that enable the insurer to pay more to the policyowner or certificateholder than would be paid pursuant to the viatical settlement except as provided in (b) below.

(b) Viatical settlement providers and viatical settlement brokers shall obtain from viators a signed statement that the viators have contacted their life insurer and that their policy does not include an accelerated death benefits clause as provided in N.J.A.C. 11:4-30; or that they had the opportunity to contact their life insurer and chose not to do so, even after it was explained to them that their policy may contain a clause that would enable them to receive more money than the viatical settlement provider is offering.

(c) A viatical settlement provider or broker shall not enter into a viatical settlement that provides a payment to the viator that is unreasonable or unjust. In determining whether a payment is unreasonable or unjust, the Commissioner may consider, among other factors, the estimated life expectancy of the viator, the premiums due under the policy, the availability of loan or other values to reduce the cost of providing the settlement to the viator, reasonable costs of capital and expenses of doing business, and provisions for refund of premiums or payment of interest on death benefits.