Relevant State Departments of Insurance Contact Info

North Carolina Department of Insurance –
Albemarle Building
325 N. Salisbury Street
Raleigh, NC 27603-5926

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Summary of the State:

    • Support
    • Oppose
    • Neutral
    • TBA
    • Summary Verbiage



WHAT IS THE REQUIRED HOLDING PERIOD?: 2 YEARS. See: N.C. Gen. Stat. § 58-58-255(a).

WHEN DOES LICENSE NEED TO BE RENEWED?: N.C. Gen. Stat. § 58-58-210(c). Licenses may be renewed from year to year on the anniversary date upon payment of the annual renewal fee of five hundred dollars ($ 500.00). Failure to pay the fees by the renewal date results in expiration of the license.

IS BROKER COMPENSATION DISCLOSURE REQUIRED?: YES. N.C. Gen. Stat. § 58-58-245(b)(3). A broker shall disclose to a prospective viator the amount and method of calculating the broker’s compensation. The term “compensation” includes anything of value paid or given to a broker for the placement of a policy.

IS THERE A MINIMUM PAYMENT REQUIREMENT?: YES. 11 NCAC 12.1713. Standards for Evaluation of Reasonable Payments.

(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 24 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.

WHEN DOES THE MONEY NEED TO BE IN ESCROW?: N.C. Gen. Stat. § 58-58-250(i). The provider shall instruct the viator to send the executed documents required to effect the change in ownership, assignment, or change in beneficiary directly to the independent escrow agent. Within three business days after the date the escrow agent receives the documents, or from the date the provider receives the documents, if the viator erroneously provides the documents directly to the provider, the provider shall pay or transfer the proceeds of the viatical settlement into an escrow or trust account maintained in a state or federally chartered financial institution, the deposits of which are insured by the Federal Deposit Insurance Corporation (FDIC) or any successor entity. Upon payment of the settlement proceeds into the escrow account, the escrow agent shall deliver the original change in owner-ship, assignment, or change in beneficiary forms to the provider or related provider trust. Upon the escrow agent’s receipt of the acknowledgment of the properly completed transfer of ownership, assignment, or designation of beneficiary from the insurance company, the escrow agent shall pay the settlement proceeds to the viator.

IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: YES. N.C. Gen. Stat. § 58-58-245(c). If the provider transfers ownership or changes the beneficiary of the insurance policy, the provider shall communicate the change in ownership or beneficiary to the insured within 20 days after the change.

IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: YES. N.C. Gen. Stat. § 58-58-250(b). Within 20 days after a viator executes documents necessary to transfer any rights under a pol-icy or within 20 days after entering any agreement, option, promise, or any other form of understanding, expressed or implied, to viaticate the policy, the provider shall give written notice to the insurer that issued that policy that the policy has or will become a viaticated policy. The notice shall be accompanied by the documents required by subsection (c) of this section.

WHAT IS THE RESCISSION PERIOD?: N.C. Gen. Stat. § 58-58-250(h). All contracts entered into in this State shall provide the viator with an unconditional right to rescind the contract for at least 10 business days after the receipt of the viatical settlement proceeds. If the insured dies during the rescission period, the contract shall be deemed to have been rescinded, subject to repayment to the provider or purchaser of all viatical settlement proceeds, and any premiums, loans, and loan interest that have been paid by the provider or purchaser.

IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – NAIC or OWN – State Approved. N.C. Gen. Stat. § 58-58-250(c) and (d).

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