Aviatical settlementallows a terminally ill insured to sell their life insurance policy to a third party for a lump sum, typically less than the death benefit, to access funds during their lifetime. The primary and most attractive feature for the insured is receiving areduced prepayment of the death benefit, providing immediate cash for medical or personal needs, as regulated in Oklahoma (Title 36 O.S. § 4055.1 et seq.).
Option A: Incorrect. Viatical settlements do not involve discounted premiums; the policy is sold.
Option B: Correct. The reduced prepayment of the death benefit is the main benefit for the insured.
Option C: Incorrect. Policy assignment is a mechanism, not the primary feature.
Option D: Incorrect. Guaranteed renewability is unrelated to viatical settlements.
This question falls under the Prometric content outline section on “Provisions, Options, Exclusions, Riders, Clauses, and Rights,” which covers viatical settlements.
[:, Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: General Knowledge – Life Insurance Provisions)., Oklahoma Insurance Department, Title 36 O.S. § 4055.1 et seq. (viatical settlements)., Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing., ]
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