Standards for Evaluation of Reasonable Payments for Terminally or Chronically Ill Insureds

Section 3701.50 Standards for Evaluation of Reasonable Payments for Terminally or Chronically Ill Insureds a)         In order to assure that viators receive a reasonable return for viaticating an insurance policy, the return for viaticating a policy shall be no less than the following payouts for insureds who are terminally or chronically ill: Insured's Life Expectancy                              Minimum Percentage of Face Value Less Outstanding Loans Received by Viator 25 months or less                                                        [75%] b)         Except when the cash surrender value is paid, the percentage may be reduced by 5% for viaticating a policy written by an insurer rated less than the highest 4 categories by A.M. Best, or a comparable rating by another rating agency.