As the investigations proceed, many states have revised or enacted laws to protect investors. In Florida, for example, viatical companies are now required to give investors the name of the insurance company, the policy number and the date the policy was issued, which should help investors identify potential clean sheeting. The law also requires more disclosure about the qualifications of the person making the life-expectancy estimate. And the penalty for fraud has been stiffened to up to 30 years in prison. Many viatical companies are working to clean up the business, too.
Viatical settlements have a legitimate purpose for people with terminal illness.
He says that most companies that have run into trouble with the law were never members of his group. The Kiplinger Washington Editors, Inc.