In a viatical settlement, what prognostic information is commonly included in the disclosure packet?

• A. Insurer's rating
• B. Viator's medical prognosis
• C. Policy's surrender charge
• D. Beneficiary's contact info

Answer: (B)

In a viatical settlement, the information that matters most for pricing and risk is the insured’s medical prognosis—the expected lifespan based on their health status. This prognosis directly drives how much a buyer is willing to pay and what risk they assume, since a shorter life expectancy suggests a quicker payout and a different value than a longer one. That’s why the disclosure packet commonly includes the viator’s medical prognosis, often supported by physician statements and medical records.

The other items don’t convey life expectancy or potential duration of the policy’s payout, so they aren’t considered prognostic information in this context. An insurer’s rating speaks to the insurer’s financial strength, not the insured’s prognosis. A policy’s surrender charge is a policy feature, not a forecast of how long the insured will live. The beneficiary’s contact information is administrative and unrelated to longevity.