Securities Division
Matthew J. Neubert - Director

1300 W. Washington St. 3rd Floor
Phoenix, AZ 85007
(602) 542-4242
(866) 837-4399
 

Viatical And Life Settlements
 
Viatical settlements or life settlements involve an interest in someone’s insurance policy.  The purchaser of the product receives a portion of the insurance benefits when the insured individual dies. The amount of return on the investor’s money depends on how long it takes for the insured individual to die.
 
Viatical and life settlements are securities.  Arizona law includes viatical and life settlements in the statutory definition of security. A.R.S. § 44-1801(26). Additionally, an Arizona court of appeals has held that viatical settlements are investment contracts. See Siporin v. Carrington, 200 Ariz. 97 (Ct. App. 2001).
 
Arizona law provides an exemption from registration for viatical or life settlement investment contracts. See A.R.S. § 44-1850.  If you offer or sell these types of investments in or from Arizona, however, you must register as a dealer or salesman.
 
For additional information, see SEC – Viatical Settlement
 
 
 
 
The information provided on this web site is not comprehensive, is not offered as legal advice, and is not a substitute for competent legal counsel.  The Securities Division recommends that you consult with a securities attorney.

 

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