 March 1999 - Death Watch - page 8What to do if you've invested in a viaticalWhat if you already own a viatical settlement and suspect the company of misrepresentation or wonder whether you should accept an offer to sell back the policy? First contact the securities administrator, insurance department and attorney general in your state and the state where the company is located. (Find your state's Web site and contact numbers at www.piperinfo.com/state/states.html.) They may be investigating the firm and usually have leverage to get more information from the insurance company and the viatical company. Also contact the Securities and Exchange Commission's Office of Investor Education and Assistance at 202-942-7040. You'll need to contact that many people because viatical settlements aren't regulated by one central agency. The securities commission takes the lead in some states; in others, it's the insurance department. And some states haven't figured out yet what to do with viaticals--which makes it easy for unscrupulous sellers. "One of the things con artists do is rely on jurisdictional gaps--they have the advantage of confusion," says Bill McDonald of the California Department of Corporations, which is currently participating in about ten viatical investigations. But few consumer organizations know how to help viatical investors. The best one-stop resource is Gloria Grening Wolk's Viatical Settlements: An Investor's Guide (Bialkin Books). She learned about viatical investments while writing a financial guide for people with terminal illnesses. The Florida Department of Insurance also offers a free booklet that discusses the risks related to viatical-settlement investments. Call the department's consumer help line at 850-922-3132. Page 1: For more than a decade... |
