Relevant State Departments of Insurance Contact Info

Virginia Department of Insurance –
P.O. Box 1157
Richmond, Virginia 23218

Email the Division of Insurance
Visit Website

Summary of the State:

    • Support
    • Oppose
    • Neutral
    • TBA
    • Summary Verbiage



WHAT IS THE REQUIRED HOLDING PERIOD?: 2 YEARS. See: Va. Code Ann. § 38.2-6009(A).

WHEN DOES LICENSE NEED TO BE RENEWED?: Va. Code Ann. § 38.2-6002(A)(3). On or before March 1 of each year commencing March 1, 2004, a licensed viatical settlement provider shall remit a renewal application form and nonrefundable renewal fee in the form and amount prescribed by the Commission. Such fee shall be not less than $ 300 and not more than $ 1,500. The renewal fee required by this subdivision shall be collected by the Commission and paid directly into the state treasury and credited to the “Bureau of Insurance Special Fund — State Corporation Commission” for the maintenance of the Bureau of Insurance as provided in subsection B of § 38.2- 400.


IS THERE A MINIMUM PAYMENT REQUIREMENT?: YES. 14 VAC 5-71-60. Standards for Evaluation of Reasonable Payments.

A. In order to assure that viators receive a reasonable settlement for viaticating a life insurance policy, the compensation for viaticating a policy shall be no less than the following payouts for insureds who are terminally or chronically ill:

Insured’s Life Expectancy                            “Minimum Percentage of Face Value (at time of viatication and withdrawals) 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 25 months 60%

B. If the insured’s life expectancy is 25 months or more, the compensation for viaticating a policy shall be at least the greater of the cash surrender value at the time of the transaction or the then available accelerated death benefit in the policy.

C. Except where the cash surrender value is paid, the percentage may be reduced by 5.0% for viaticating a policy written by an insurer rated less than the highest four categories by A.M. Best or other comparable rating agencies, based on the most recent publication of such rating agencies at the time of viatication.

WHEN DOES THE MONEY NEED TO BE IN ESCROW?: Va. Code Ann. § 38.2-6008(D). The viatical settlement 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 viatical settlement 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 whose de-posits are insured by the Federal Deposit Insurance Corporation. Upon payment of the settlement proceeds into the escrow account, the escrow agent shall deliver the original change in ownership, assignment, or change in beneficiary forms to the viatical settlement 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. Va. Code Ann. § 38.2-6007(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. Va. Code Ann. § 38.2-6008(A)(2). Within 20 days after a viator executes documents necessary to transfer any rights under an insurance policy or within 20 days of entering any agreement, option, promise or any other form of understanding, expressed or implied, to viaticate the policy, the viatical settlement provider shall give written notice to the insurer that issued that insurance policy that the policy has or will become a viaticated policy. The notice shall be accompanied by the documents required by subdivision 3.

WHAT IS THE RESCISSION PERIOD?: Va. Code Ann. § 38.2-6008(C). All viatical settlement contracts entered into in this Commonwealth shall provide the viator with an unconditional right to rescind the contract for at least 15 calendar days from the receipt of the viatical settlement proceeds. If the insured dies during the rescission period, the viatical settlement contract shall be deemed to have been rescinded, subject to repayment to the viatical settlement provider or purchaser of all viatical settlement proceeds, and any premiums, loans, and loan interest that have been paid by the
viatical settlement provider or purchaser.

IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – NAIC or OWN – State Approved. Va. Code Ann. § 38.2-6008(A)(3) and 14 VAC 5-71-93(B).

Latest Blogs


Consumers were paid over $750 Million by LISA Members for the sale of their unwanted life insurance policies

On May 3, the Life Insurance Settlement Association (LISA) released findings from its 2021 Annual Market Data Collection Survey. The data collected represents summary closing…

Read More

The Evolution of Regulations that have Benefited the Consumer

The life settlement industry was born in 1911 when Supreme Court Justice Oliver Wendell Holmes Jr. and his fellow justices ruled that life insurance is…

Read More

Combating Inflation with Life Settlement Earnings

Everything is getting more expensive these days. Gas prices are higher, food prices are higher, used car prices are higher—it seems like nothing right now…

Read More

How Did Insurance Policy Owners Earn $848 Million in 2020?

It’s true—according to “The Life Settlements Report” released by The Deal, 3,241 people sold their life insurance policies in 2020 for a combined total of…

Read More