Producer Registered as a Viatical Settlement Broker

Viatical Settlement Broker / Viatical Settlement Provider / Producer Registered as a Viatical Settlement Broker
Registration Form 342B
Nevada Law was amended, effective 10/1/2005 to allow a licensed life qualified producer of insurance to act as a Viatical Settlement Broker under the following conditions.

Chapter 688C of NRS is hereby amended by adding thereto a new section to read as follows:
1. A natural person who has been licensed for at least 1 year and who is in good standing as a resident or nonresident producer of insurance with a life insurance qualification is not required to be licensed as a broker of viatical settlements.
2. A licensed producer of insurance specified in subsection 1 must register with the Division not more than 30 days after first operating as a broker of viatical settlements, on a form prescribed by the Commissioner, and pay the fee for registration pursuant to NRS 680B.010. Failure to register within the required period or late payment of or failure to pay the fee may result in the imposition of an administrative fine of not more than $500.
3. A producer of insurance who acts as a broker of viatical settlements pursuant to subsection 1 shall comply with the provisions of NRS 688C.220 to 688C.250, inclusive, and 688C.310.

NRS 688C.220 Filing and approval of forms; submission of advertising material. A person shall not use a form of viatical settlement or of disclosure in this state unless the form has been filed with and approved by the Commissioner. The Commissioner shall disapprove such a form if, in his opinion, the settlement or any of its terms is unreasonable, contrary to the interests of the public or otherwise misleading or unfair to the viator. The Commissioner may require the submission of advertising material before its use.

NRS 688C.230 Filing of annual statement; disclosure of identity of insured.
1. Each licensee under this chapter shall file with the Commissioner on or before March 1 of each year an annual statement containing such information as the Commissioner prescribes by regulation.
2. Except as allowed or required by a statute other than this chapter, a provider or broker of viatical settlements, an insurer, a producer of insurance, an information bureau, a rating agency or any other person knowing the identity of an insured shall not disclose that identity as an insured to any other person unless the disclosure is:
   (a) Necessary to effect a viatical settlement between the viator and a provider of viatical settlements and the viator and the insured have given prior written consent to the disclosure;
   (b) Furnished in response to an investigation or examination by the Commissioner or another governmental officer or agency;
   (c) A term of or condition to the transfer of a policy by one provider of viatical settlements to another provider; or
   (d) Necessary to permit a financing agent to finance the purchase of a policy by a provider of viatical settlements and the insured has given prior written consent to the disclosure.

NRS 688C.240 Retention of records and documents.
1. A person required to be licensed under this chapter shall retain for 5 years copies of all:
   (a) Contracts, underwriting documents, forms of policy and applications, from the date of the proposal, offer or execution, whichever is latest;
   (b) Checks, drafts and other evidence or documentation relating to the payment, transfer or release of money, from the date of the transaction; and
   (c) Records and documents related to the requirements of this chapter.
2. This section does not relieve a person of the obligation to produce a document described in subsection 1 to the Commissioner after the expiration of the relevant period if the person has retained the document.
3. Records required by this section to be retained must be legible and complete. They may be retained in any form or by any process that accurately reproduces or is a durable medium for the reproduction of the record.

NRS 688C.250 Disclosures to viator upon or before execution of application for settlement.

1. With each application for a viatical settlement, a provider or broker of viatical settlements shall furnish to the viator at least the following disclosures no later than the time the application for the settlement is signed by all the parties, in a separate document signed by the viator and the provider or broker:

   (a) The possible alternatives to viatical settlement, including any accelerated death benefits or loans offered under the viator’s policy.

   (b) Some or all of the proceeds of the viatical settlement may be taxable under the federal income tax or a state franchise or income tax, and assistance should be sought from a professional tax adviser.

   (c) Proceeds of the viatical settlement may be subject to the claims of creditors.

   (d) Receipt of proceeds of a viatical settlement may adversely affect the viator’s eligibility for Medicaid or other governmental benefits, and advice should be sought from the appropriate governmental agencies.

   (e) The viator has a right to terminate a viatical settlement within 15 days after his receipt of the proceeds, as provided in NRS 688C.300, and if the insured dies during that period, the settlement is terminated and all proceeds must be repaid to the provider.

   (f) Money will be sent to the viator within 3 business days after the provider has received the insurer’s or group administrator’s acknowledgment that ownership of or interest in the policy has been transferred and the beneficiary has been designated.

   (g) Entering into a viatical settlement may cause other rights, including conversion and waiver of premium, that may exist under the policy to be forfeited by the viator, and assistance should be sought from a financial adviser.

   (h) A brochure is provided which describes the process of viatical settlement, in the form prescribed by the National Association of Insurance Commissioners unless the Commissioner prescribes a different form.

2. The document in which the disclosures required by paragraphs (a) to (g), inclusive, of subsection 1 are made must also contain the following:

All medical, financial and personal information solicited or obtained by a provider or broker of viatical settlements about an insured, including his identity and that of members of his family, a spouse or other relationship, may be disclosed as necessary to effect the viatical settlement between the viator and the provider. If you are asked to provide this information, you will be asked to consent to the disclosure. Failure to consent may affect your ability to viaticate your policy. The information may be furnished to someone who buys the policy or provides money for the purchase.

NRS 688C.310 Contact with insured to determine status of his health after settlement.

1. Contact with an insured to determine the status of his health after a viatical settlement may be made only by a provider or broker of viatical settlements who is licensed in this state, or its authorized representative, and no oftener than once every 3 months if the insured has a life expectancy of 1 year or more, or once every month if the insured has a life expectancy of less than 1 year. The provider or broker shall explain the procedure for those contacts at the time the settlement is entered into.

2. The limitations of subsection 1 do not apply to contacts for purposes other than determining status of health.

3. A provider or broker is responsible for the acts of his authorized representative.


Contact the Division’s Producer Licensing Section in Carson City at (775) 687-0700, option 1, in Las Vegas at (702) 486-4595 or anywhere in Nevada toll free at (800) 992-0900.

Title 57 of the Nevada Revised Statutes (NRS) governs the business of insurance. Nevada’s laws and regulations are available online at www.leg.state.nv.us

Viatical Settlement Broker - Viatical Settlement Provider

Viatical Provider or Viatical Broker Packet



a person who on behalf of a viator and for a fee, commission or other valuable consideration offers or attempts to negotiate a viatical settlement between the viator and one or more providers of viatical settlements. The term does not include an attorney at law; certified public accountant or financial planner accredited by a nationally recognized accrediting agency who is retained by the viator and whose compensation is not paid by a provider or purchaser of viatical settlements.


a person other than a viator who enters into or effectuates a viatical settlement. The term does not include a bank, savings and loan association, thrift company, credit union or other licensed lender that takes an assignment of a policy as security for a loan; the issuer of a policy that provides accelerated benefits pursuant to the contract; an authorized or eligible insurer that provides stop-loss coverage to a provider or purchaser of viatical settlements; a natural person who enters into no more that one agreement in a calendar year for the transfer of policies for a value less than the expected death benefit; a financing agent; a special organization; a trust for a related provider; or a purchaser of viatical settlements.


Uniform Application for Business Entity, Form 325  

Biographical affidavits and fingerprints are required for each person referenced on number 26 of the NAIC application.

Bonding requirements effective October 1, 2009:

Upon the conclusion of Nevada’s 2009 Legislative Session (Session), Senate Bill (SB) SB 426 amended various provisions of the Nevada Revised Statutes. Pursuant to the new provision, NRS 688C.200 was amended as follows:


Name Approval: Applicants must contact the Division of Insurance (Division) for a verbal name approval prior to completing any articles of incorporation, articles of organization or amendments with the Secretary of State’s (SOS) office, or prior to filing any DBA/Fictitious Firm Name filings with the appropriate Nevada County Clerk’s office.
Division Phone: (775) 687-0700
Division General E-mail


Corporations, Limited Liability Companies, Limited Liability Partnerships and Associations, etc.:

Contact (SOS) to obtain forms, instructions and applicable fees.

SOS Phone: (775) 684-5708

SOS Web site

Articles of Incorporation (Articles) Purpose Clause: Business entities whose purpose is to engage in the business of insurance are required to file with the SOS and must include the following statement within the purpose clause of the entity’s Articles of Incorporation: “To engage in the business of insurance in all lines of authority permitted under the license issued in compliance with Nevada Revised Statutes (NRS) and Nevada Administrative Codes (NAC).” The articles or amendment must be forwarded to the Division prior to being filed with the SOS by either of the following methods:

  • Mail the Articles or amendment to the Division’s address with the fee for the SOS in a separate sealed envelope labeled “Secretary of State” or “SOS.”
  • Fax the Articles or amendment to the Division’s office. Upon approval of the Articles or amendment, the Division will fax the information to the fax number provided by the applicant for filing with the SOS. The Division’s fax number is (775) 687-0787.

Upon the Division’s approval of the Articles or amendment, the Division will forward its approval to the SOS for its consideration. When the SOS completes its review and approval process, the business entity will be required to furnish a filed copy of the approved Articles or amendment.

Sole-Proprietorships: Sole proprietors must file a DBA/Fictitious Firm Name with each county clerk’s office where they intend to conduct business. A copy of the filing must be provided to the Division along with the licensing application. Contact the appropriate County Clerk’s office for filing instructions. Refer to Chapter 602 of NRS for information on doing business under an assumed or fictitious name.

A pending application will only be held for 90 days. After 90 days, if the application has not been completed, it will be destroyed and the fees deemed earned.

Biographical Affidavits: Pursuant to NRS 688C.190(4), a license issued to an organization authorizes all partners, members, officers and designated employees to act as providers or brokers of viatical settlements. Those persons must be named in the application or a supplement to it.

Uniform Application for Individual Insurance Producer License, Form 327  

Utilize this form if the applicant is an individual applying for a viatical license, or any person referenced in If the applicant is an individual affiliating to a business entity on question No. 36 of the National Association of Insurance Commissioner’s (NAIC) application, and wants the name of the entity to appear on the license, the applicant must list the address of the business entity as the mailing address.

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