question 35 of 60 which of the following statements regarding viatical settlements is incorrect? a…

question 35 of 60 which of the following statements regarding viatical settlements is incorrect? a. insurable interest is not required in this transaction. b. viators receive the full face - amount of the policy. c. the insured must be terminally ill when this transaction is conducted. d. viatical settlement is a purchase of an existing policy.

question 35 of 60 which of the following statements regarding viatical settlements is incorrect? a. insurable interest is not required in this transaction. b. viators receive the full face - amount of the policy. c. the insured must be terminally ill when this transaction is conducted. d. viatical settlement is a purchase of an existing policy.

Answer

Brief Explanations:

In a viatical settlement, insurable interest is required. Viatical settlements involve a terminally - ill insured selling an existing life - insurance policy. The viators (buyers) do not receive the full face - amount of the policy; they pay a discounted amount. The insured must be terminally ill for the transaction to occur. A viatical settlement is indeed a purchase of an existing policy.

Answer:

A. Insurable interest is not required in this transaction, B. Viators receive the full face - amount of the policy