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On July 10, Pennsylvania Governor Mark Schweiker signed into law the Viatical Settlements Act, which provides for the regulation of viatical and life settlements by the Pennsylvania Insurance Department.
Among its measures are anti-fraud provisions such as “mandatory reporting of fraudulent viatical settlement acts to the PID,” as well as, “a prohibition against knowingly entering into a viatical settlement contract for a life insurance policy that was obtained by means of a false, deceptive or misleading application.”
The new law will help safeguard against fraud by regulating both viatical brokers and providers, says Rosanne Placey, press secretary with the Pennsylvania department.
Brokers and providers will now be required to be licensed by the state in order to engage in the business of viatical settlements.