In a viatical settlement, how is ownership transferred?

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Study for the Minnesota Life Accident and Health Producer Exam. Prepare with flashcards and multiple choice questions with hints and explanations. Get ready for your exam!

Multiple Choice

In a viatical settlement, how is ownership transferred?

Explanation:
In a viatical settlement, ownership transfer is accomplished by an absolute assignment to a third-party purchaser. The person with the life policy (the viator) sells the policy to an investor, and the investor becomes the policy owner, responsible for premiums and entitled to the death benefit when the insured dies. This complete transfer of all policy rights to the third party is the standard method used to finalize the sale. The insurer remains the issuer of the policy, not the owner, and ownership is not kept by the original policyholder.

In a viatical settlement, ownership transfer is accomplished by an absolute assignment to a third-party purchaser. The person with the life policy (the viator) sells the policy to an investor, and the investor becomes the policy owner, responsible for premiums and entitled to the death benefit when the insured dies. This complete transfer of all policy rights to the third party is the standard method used to finalize the sale. The insurer remains the issuer of the policy, not the owner, and ownership is not kept by the original policyholder.

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