(Name of company), in order to encourage the best business practices in the industry, and to assist sellers of life insurance in assessing viatical options, agrees to abide by the following standards and practices:
- We will inform potential sellers that viatication is one of several mechanisms for accessing cash benefits from a life insurance policy. We will encourage all potential sellers to work with a financial adviser to determine a course of action best suited to an individual seller's needs.
- We will comply with all applicable federal and state laws, and in those states which have licensing requirements we will be licensed and disclose our licensing status in informational materials to clients. Our advertising will either disclose our licensing status or provide a phone number for clients to call to verify our licensing status in their state.
- We will not engage in advertising practices that are false, misleading or deceptive.
- We will present the complete terms of all offers to sellers in writing.
- We will offer a range of options for monitoring the on-going health of the seller after the purchase of the seller's life insurance policy, allowing the seller to select a monitoring method responsive to the seller's needs. Monitoring options will include, at a minimum, monitoring by mail and directly with the seller's physician.
- We will not, under any circumstances, divulge patient identifying information without the written informed consent of the seller. When seeking the right to disclose patient identifying information we will ensure that the seller's consent is informed by always providing, at a minimum, the identity of the specific person(s) or entities proposed to receive such information. We also will require all such person(s) or entities to sign a statement that they will never divulge patient identifying information without the seller's written informed consent.
- We will provide proof that the funds to purchase the insurance policy have been set aside in an escrow account controlled by an independent agent prior to our receiving documents which transfer ownership of the policy.
- We will never pay a finder's fee to any health care provider currently providing care to the seller.
- We will, at a minimum, provide sellers the right to return the proceeds and void the sale for a period of no less than 15 days after the seller receives the proceeds.
- We will include the following disclosures in every application:
The potential availability of accelerated benefits and other mechanisms of accepting cash through one's life insurance policy;
The potential tax, estate and probate implications of the viatical settlement pursuant to current federal and state laws;
The potential impact of the viatical settlement on the seller's eligibility for Medicaid, SSI and other needs-based public benefits; and
- The potential impact of a viatical settlement on a seller who has recently filed for bankruptcy.
- We will disclose the names of any individuals or entities who will be paid by us as a result of this transaction.
- We will issue a copy of these standards and a statement that we abide by them with every application.