11 NCAC 12 .1713             Standards for evaluation of reasonable payments

(a)  Insureds who are terminally or chronically ill shall receive no less than the following payouts for viaticating a policy. The percentage may be reduced by 5% for viaticating a policy written by an insurer rated less than the highest four categories by A.M. Best, or a comparable rating by another rating agency.


Insured's Life Expectancy

Minimum Percentage of Face Value Less Outstanding Loans Received by Viator

Less than 6 months


At least 6 but less than 12 months


At least 12 but less than 18 months


At least 18 but less than 25 months


25 months or more

Viator must receive at least the greater of the cash surrender value or accelerated death benefit for the policy


(b)  Insureds who are not terminally or chronically ill shall receive at least the cash surrender value of the policy.


History Note:        Authority G.S. 58-2-40; 58-58-300;

Temporary Adoption Eff. April 1, 2002;

Eff. April 1, 2003;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. May 1, 2018.