Nev. Admin. Code § 688C.150

Current through November 8, 2024

Section 688C.150 - Payment to viator: Minimum amount if insured is chronically ill or terminally ill; unjust or unreasonable amount

1. If an insured is chronically ill or terminally ill, the minimum amount that may be paid to a viator under a viatical settlement is:

(a) If the life expectancy of the insured is less than 6 months, 80 percent of the net death benefit.

(b) If the life expectancy of the insured is at least 6 months but less than 12 months, 70 percent of the net death benefit.

(c) If the life expectancy of the insured is at least 12 months but less than 18 months, 65 percent of the net death benefit.

(d) If the life expectancy of the insured is at least 18 months but less than 25 months, 60 percent of the net death benefit.

(e) If the life expectancy of the insured is 25 months or more, an amount equal to the greater of:

(1) The cash surrender value of the policy at the time the viator enters into the viatical settlement; or

(2) The accelerated death benefit of the policy at the time the viator enters into the viatical settlement.

2. In addition to the requirements pursuant to subsection 1 regarding the minimum amount that may be paid to a viator pursuant to a viatical settlement, a viatical settlement must not provide for a payment to a viator of an amount that is unjust or unreasonable.

3. To determine if a payment to a viator pursuant to a viatical settlement is unjust or unreasonable, the Commissioner will consider:

(a) The face value of the benefit of the policy being purchased;

(b) The value of any loan against the value of the benefit of the policy;

(c) The life expectancy of the insured at the time the viator enters into the viatical settlement;

(d) The age of the insured at the time the viator enters into the viatical settlement;

(e) The premiums that must be paid after the time the viator enters into the viatical settlement to maintain the policy;

(f) The cash surrender value or accelerated death benefit of the policy;

(g) The costs that directly relate to the acquisition of the policy;

(h) The payment of any commission, fee or other compensation paid to a broker for viatical settlements or to any other third party;

(i) Any payments of interest on any loans against the value of the benefit of the policy that must be made after the time the viator enters into the viatical settlement;

(j) The applicable rating by a rating service recognized by the insurance industry of the insurance company that issued the policy at the time the viator enters into the viatical settlement;

(k) The prevailing rates of discount for viatical settlements in this State or, if insufficient data exists to determine the prevailing rates of discount in this State, the national prevailing rates of discount or the prevailing rates of discount for any other state that maintains data on the prevailing rates of discount for viatical settlements;

(l) Whether the policy is within the contestable period; and

(m) Any other charges or fees directly or indirectly related to the viatical settlement.

Nev. Admin. Code § 688C.150

Added to NAC by Comm'r of Insurance by R180-03, eff. 11-15-2004

NRS 679B.130, 688C.170