Viatical settlement brokers send packets of information to potential viatees. These information packets normally include existing policy terms and which of the following?

• A. Insurer's financial rating
• B. Viator's medical prognosis
• C. Lapse notice date
• D. Policy's cash surrender value

Answer: (B)

In a viatical settlement, the investor’s primary concern is how long the insured is expected to live, since this life expectancy directly drives the risk and timing of the death benefit payment. Therefore, the information packet given to potential buyers includes the policy terms plus the viator’s medical prognosis, which provides an estimate of life expectancy and helps price the policy and gauge potential return. The insurer’s financial rating, lapse notice date, and the policy’s cash surrender value are relevant pieces of policy information, but they do not address the key timing risk that prognosis reveals. So the medical prognosis is the best and most important additional item to include.