The California Department of Insurance plans to hold a hearing June 9 on a proposal to update the state’s viatical settlement regulation.
The proposed regulation would be broad enough to apply to policyholders who were not terminally ill, but it would still be a narrowly focused viatical settlement regulation, not a broadly focused life settlement regulation, according to Jennifer Chambers, a senior staff counsel with the California department.
Officials at the California department have been working on the proposed regulation for several years.
Originally, the term “viatical settlement” referred to efforts by terminally ill life insurance policyholders to sell the policies to individual investors or institutional buyers.
In recent years, companies have focused on “life settlements,” or purchases of life policies from policyholders who, in most cases, have a life expectancy of at least 2 years.
A description of the viatical regulation is on the Web at Document Link