State Securities Administrators’

Regulatory Positions on Investments in Viatical/Life Settlements

As of October2007

Jurisdiction / Treated as Securities / Regulatory Position
Alabama / Yes / Statement of Policy - viatical investments are investment contracts
Alaska / Yes / Statutory Language - includes “viatical settlement interest” – Alaska Stat. § 45.55.990(32)
Arizona / Yes / Statutory Language - includes “viatical or life settlement investment contract” – Ariz. Rev. Stat. §44-1801(26)
Arkansas / Yes / Statutory Language - includes “viatical settlement contract” - Ark. Code Ann. § 23-42-102(15)(A)(xiii)
California / Yes / Statutory Language - includes “viatical settlement contract” and “life settlement contract” - Cal. Corp. Code § 25019
Colorado / Yes / Statutory Language - includes “viatical settlement investment”- §11-51-201(17), C.R.S.
Connecticut / No
Delaware / Yes / Investment Contract Analysis - 6 Del. Code Ann. §7302(13)
District of Columbia / Yes;
Legislation Pending / Investment Contract Analysis - D.C. Code Ann. § 31-5601.1(31)
DC City Council is considering the Uniform Securities Act of 2002, which defines viatical interests as a “security.”
Florida / Yes / Statutory Language - includes “viatical settlement investment” - Fla Stat. Ann. §517.021(21)(w)
Georgia / Yes / Statutory Language - includes “viatical investment” - Ga. Code Ann. § 10-5-2(a)(26)
Hawaii / Yes / Investment Contract Analysis - Haw. Rev. Stat. § 485-1(13)
Idaho / Yes / Statutory Language - “investment contract” definition includes “viatical settlement, life settlement or senior settlement” - Idaho Code § 30-14-102(28)(e)
Illinois / Yes / Investment Contract Analysis – 815 Ill Comp. Stat. 5/2.1
Indiana / Yes / Statutory Language - includes “viatical settlement contract” - Ind. Code § 23-2-1-1(k)
Iowa / Yes / Statutory Language - includes “viatical settlement investment contract” - Iowa Code Ann. § 502.102(28)(f)
Kansas / Yes / Statutory Language - “investment contract” definition includes a “viatical investment” – Kan. Stat. Ann. §17-12a102(28)(E)
Kentucky / Yes / Statutory Language - includes “viatical settlement interest” - Ky. Rev. Stat. Ann. §292.310(18)
Louisiana / Yes / Investment Contract Analysis - La. Rev. Code Ann. § 702(15)(a)
Maine / Yes / Statutory Language - includes “viatical or life settlement contract”- Me. Rev. Stat. Ann. 32, §16102(28)
Maryland / Yes / Investment Contract Analysis – Md. Bus. Reg. §11-101(r)(1)(xi)
Massachusetts / Yes / Investment Contract Analysis - Mass. Gen Laws ch. 110A, §401(k)
Michigan / Yes;
Legislation Pending / Investment Contract Analysis - Mich Stat. Ann. § 451.801(z)
HB 5008 amends MI USA definition of a security to include “an investment in a viatical or life settlement”
Minnesota / Yes / Investment Contract Analysis - Minn. Stat. § 80A.4, subd. 102(28)
Mississippi / Yes / Statutory Language - includes “viatical settlement investment contract” - Miss. Code Ann. § 75-71-105(n)
Missouri / Yes / Statutory Language - “investment contract” definition includes investments in a “viatical settlement or similar agreement” - Mo. Rev. Stat. § 409.1-102(28)(E)
Montana / Yes / Statutory Language - includes “viatical settlement purchase agreement” - Mont. Code Ann. § 30-10-103(22)(a)
Nebraska / Yes / Statutory Language - includes “viatical settlement contract” - Neb. Rev. Stat. § 8-1101(15)
Nevada / No
New Hampshire / Yes / Investment Contract Analysis - N.H. Rev. Stat. Ann., §421-B:2, (XX)(a)
New Jersey / Yes / Statutory Language - includes “viatical investment” - N.J. Stat. Ann. § 49:3-49(m)
New Mexico / Yes / Investment Contract Analysis - N.M. Stat. Ann. § 58-13B-2.(X)
New York / Yes / Investment Contract Analysis - N.Y. Bus. Law § 352(22)
North Carolina / Yes / Statutory Language - includes “viatical settlement contract” - N.C. Gen. Stat. § 78A-2(11)
North Dakota / Yes / Statutory Language - includes “viatical settlement contract” - N.D. Cent. Code § 10-04-02(19)
Ohio / Yes / Statutory Language - includes “any life settlement interest” - Ohio Rev. Code Ann. § 1707.01(B)
Oklahoma / Yes / Statutory Language - “investment contract” definition includes “investment in a viatical or life settlement or similar contract or agreement” - Okla. Stat. tit. 71, §1-102(32)(e)
Oregon / Yes / Investment Contract Analysis - Or. Rev. Stat. § 59-015(19)(a)
Pennsylvania / Yes / Statement of Policy - viatical investments are investment contracts
Rhode Island / Yes / Statement of Policy - viatical investments are investment contracts, and noting that “viatical settlements are also being offered as life settlements”
South Carolina / Yes / Statutory Language - “Investment Contract” definition includes an “investment in a viatical settlement or similar agreement” - S.C. Code Ann § 35-1-102(29)(E)
South Dakota / Yes / Statutory Language - “Investment Contract” definition includes “investment in a viatical settlement or similar agreement”- S.D. Codified Laws §47-31B-102(28)(E)
Tennessee / Yes / Statutory Language - includes “life settlement contract.” - Tenn. Code Ann. § 48-2-102(16)
Texas / Yes / Investment Contract Analysis - Tex. Rev. Civ. Stat. Ann. art. 581.4.A
Utah / Yes / Statutory Language - includes “viatical settlement interest” - Utah Code Ann. §61-1-13(x)(i)(R)
Vermont / Yes / Statutory Language - “investment contract” definition includes “an investment in a viatical settlement, or similar agreement” Vt. Stat. Ann. tit. 9 § 5102(28)(E)
Virginia / Yes / Investment Contract Analysis - Va. Code Ann. § 13.1-501(A)
Washington / Yes / Investment Contract Analysis - Wash. Rev. Code § 21.20.005(12)(a)
West Virginia / Yes / Statutory Language - includes “viatical settlement contract” - W. Va. Code § 32-4-401(n)
Wisconsin / Yes / Investment Contract Analysis - Wis. Stat. § 551.02(13)(a)
Wyoming / No

State Totals (51 Jurisdictions):

·  Viatical/Life Settlements are included in the statutory definition of a “security”: 21

·  Viatical/Life Settlements are included in the statutory definition of an “investment contract”: 7

·  Viatical/Life Settlements are securities under an investment contract analysis: 17

·  Viatical/Life Settlement are securities under a Statement of Policy: 3

·  Viatical/Life Settlements will be defined as a “security” under pending legislation: 2

·  Viatical/Life Settlements are not regulated as securities: 3


Explanations of Terms

Statutory Language: means that the jurisdiction’s securities law expressly defines viatical/life settlements as securities, either directly, or as part of the definition of an investment contract.

Investment Contract Analysis: means that the jurisdiction’s securities law includes “investment contracts” in the definition of security, and that the administrator regards viatical/life settlements as investment contracts.

Statement of Policy: means the jurisdiction has made a public pronouncement, either in a rule or other guidance, that it considers viatical/life settlements to be securities.

4