He also noted that in the NAIC's record of model acts, pre-2004 there are 30-35 pages of records on the viatical model but post-2004, there is one line describing work that is being done on the model.
The NAIC's careful deliberations produced a Viatical Settlements Model Act that would address the most prevalent form of STOLI, which is a transaction initiated by third-party investors lacking insurable interest for the purpose of settling the policy in the secondary market.
said that even if nothing illegal was done during the development of the viatical model, there is still an issue of perception and "an appearance that there was a bias.
In addition, many states have extensive provisions regulating viatical settlements.
Accelerating death benefits or entering into a viatical settlement generally is indicated only when a person is terminally ill or seriously and chronically ill, in need of cash, and other options to meet those cash needs are not available.