14 Va. Admin. Code § 5-71-60
Current through Register Vol. 40, No. 19, May 6, 2024
Section 14VAC5-71-60 - Standards for evaluation of reasonable paymentsA. 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.14 Va. Admin. Code § 5-71-60
Derived from Virginia Register Volume 14, Issue 2, eff. October 15, 1997; amended, Virginia Register Volume 19, Issue 1, eff. September 4, 2002; Volume 20, Issue 5, eff. November 1, 2003.Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.