North Carolina Administrative Code
Title 11 - INSURANCE
Chapter 12 - LIFE AND HEALTH DIVISION
Section .1700 - VIATICAL SETTLEMENTS
Section 12 .1713 - STANDARDS FOR EVALUATION OF REASONABLE PAYMENTS
Current through Register Vol. 39, No. 6, September 16, 2024
(a) Insureds who are terminally or chronically ill shall receive no less than the following payouts for viaticating a policy. The percentage may be reduced by 5% for viaticating a policy written by an insurer rated less than the highest four categories by A.M. Best, or a comparable rating by another rating agency.
Insured's Life Expectancy |
Minimum Percentage of Face Value Less Outstanding Loans Received by Viator |
Less than 6 months |
[80%] |
At least 6 but less than 12 months |
[70%] |
At least 12 but less than 18 months |
[65%] |
At least 18 but less than 25 months |
[60%] |
25 months or more |
Viator must receive at least the greater of the cash surrender value or accelerated death benefit for the policy |
(b) Insureds who are not terminally or chronically ill shall receive at least the cash surrender value of the policy.
Authority
G.S.
58-2-40;
58-58-300;
Temporary
Adoption Eff. April 1, 2002;
Eff. April 1, 2003;
Pursuant to
G.S.
150B-21.3A, rule is necessary without
substantive public interest Eff. May 1, 2018.