A Viatical Settlement Broker Surety Bond is a license and permit surety bond required by certain government jurisdictions and tend to range from $50,000 to $250,000.
A Viatical Settlement broker is an investment broker who buys a life insurance policy from the policy owner while they are still alive at a price discounted from the face amount of the policy but usually in excess of the premiums paid or current cash surrender value. The seller gets an immediate cash settlement that they often use to cover medical expenses as they anticipate their life expectancy to be short.
The bond guarantees that the viatical settlement broker will dutifully perform all legal duties and responsibilities to the consumer in this transaction. These bonds are also known as Life Settlement Broker Surety Bonds.
What states require viatical settlement broker bonds?
Minnesota
The state’s Department of Commerce requires a $250,000 viatical settlement broker bond.
Montana
The State of Montana requires a bond of $50,000.
Nebraska
The Nebraska Revised Statutes states that a viatical settlement broker needs a $250,000 bond, which increased in May 2016 from $50,000.
Nevada
The amount of a viatical settlement broker bond is determined by the Nevada Division of Insurance but is no less than $250,000.
Oklahoma
The Oklahoma State Insurance Commission requires a $50,000 bond.
As with all bonds, these are subject to change based on state laws.