West Virginia Code of State Rules
Agency 114 - Insurance Commission
Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER
Series 114-80 - Viatical Settlements
Section 114-80-5 - Standards for Evaluation of Reasonable Payments for Terminally or Chronically Ill Insureds

Universal Citation: 114 WV Code of State Rules 114-80-5

Current through Register Vol. XLI, No. 38, September 20, 2024

5.1. In order to assure that viators who are terminally or chronically ill receive a reasonable return for viaticating an insurance policy, the return for viaticating a policy shall be no less than the following payout:

5.1.a. If the life expectancy is less than six months, eighty percent of the net death benefit.

5.1.b. If the life expectancy is at least six months but less than twelve months, seventy percent of the net death benefit.

5.1.c. If the life expectancy is at least twelve months but less than eighteen months, sixty-five percent of the net death benefit.

5.1.d. If the life expectancy is at least eighteen months but less than twenty-five months, sixty percent of the net death benefit.

5.1.e. If the life expectancy is twenty-five months or more, the viator must receive at least the greater of the cash surrender value or accelerated death benefit in the policy.

5.2. Except where the cash surrender value is paid, the percentage may be reduced by five percent 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.

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