“Financing entity” means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a viatical settlement provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a viatical settlement contract, but:
a. Whose principal activity related to the transaction is providing funds to effect the viatical settlement or purchase of one or more viaticated policies; and
b. Who has an agreement in writing with one or more licensed viatical settlement providers to finance the acquisition of viatical settlement contracts.
Source: This is the definition of financing entity used by National Association of Insurance Commissioners in its Viatical Settlements Model Act, according to Stacy J. Braverman, the founder and president of Regulatory Solution Associates, Inc., Lake Villa, Ill. Find out the significance in her National Underwriter Web Exclusive, Changing life settlement roles can lead to overlooked regulations.