Which term refers to a fraudulent act within the life settlement arena?

Which term refers to a fraudulent act within the life settlement arena?

• A. Bequests
• B. Retirement fund
• C. Education funds
• D. Fraudulent viatical settlement act

Answer: (D)

Fraud in the life settlement space is captured by a term that names illegal acts within viatical settlements. A viatical settlement involves selling a life insurance policy to a third party, typically for a cash amount that’s different from its death benefit. When fraud occurs, it can include misrepresenting the insured’s health or life expectancy, misstating who owns the policy, or hiding important facts like commissions or the true source of funds. The specific term that identifies these unlawful activities in this arena is the fraudulent viatical settlement act, which exists to deter and penalize deceptive practices and protect everyone involved. The other terms—bequests, retirement funds, and education funds—are unrelated to fraudulent activity in viatical settlements.

Fraud in the life settlement space is captured by a term that names illegal acts within viatical settlements. A viatical settlement involves selling a life insurance policy to a third party, typically for a cash amount that’s different from its death benefit. When fraud occurs, it can include misrepresenting the insured’s health or life expectancy, misstating who owns the policy, or hiding important facts like commissions or the true source of funds. The specific term that identifies these unlawful activities in this arena is the fraudulent viatical settlement act, which exists to deter and penalize deceptive practices and protect everyone involved. The other terms—bequests, retirement funds, and education funds—are unrelated to fraudulent activity in viatical settlements.