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Viatical Settlement Contract for Hong Kong

Viatical Settlement Contract Template for Hong Kong

A legal agreement governed by Hong Kong law that facilitates the sale of a life insurance policy by the policyholder (viator) to a third-party investor (viatical settlement provider) for a lump sum payment that is less than the policy's death benefit but more than its cash surrender value. The document encompasses various aspects including medical information disclosure, privacy protections, regulatory compliance requirements under Hong Kong insurance and securities laws, and detailed payment terms. It provides comprehensive protection for all parties involved while ensuring compliance with relevant Hong Kong regulations and ordinances.

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Viatical Settlement Contract

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What is a Viatical Settlement Contract?

The Viatical Settlement Contract is a specialized agreement used in Hong Kong when a life insurance policyholder wishes to sell their policy to a third-party investor. This transaction type typically occurs when the policyholder requires immediate access to funds, often due to medical or financial circumstances. The document is structured to comply with Hong Kong's regulatory framework, including the Insurance Ordinance (Cap. 41) and Securities and Futures Ordinance (Cap. 571). It contains essential provisions for policy transfer, medical information disclosure, privacy protection, and payment terms. The contract ensures proper due diligence, transparent pricing, and adequate protection for all parties while meeting regulatory requirements for both insurance and investment products in Hong Kong's financial market.

What sections should be included in a Viatical Settlement Contract?

1. Parties: Identification of the life insurance policy owner (viator), the purchaser (viatical settlement provider), and any relevant intermediaries

2. Background: Context of the transaction, including the existence of the life insurance policy and the viator's intention to sell their interest

3. Definitions: Definitions of key terms used throughout the agreement, including technical insurance and financial terms

4. Sale and Purchase: Core transaction terms, including the policy details and the agreed purchase price

5. Payment Terms: Details of how and when the purchase price will be paid to the viator

6. Representations and Warranties: Statements of fact and guarantees from both parties, including the viator's ownership of the policy and disclosure of medical condition

7. Medical Information and Authorization: Provisions regarding access to medical records and ongoing medical information

8. Privacy and Confidentiality: Terms governing the handling and protection of personal and medical information

9. Regulatory Compliance: Provisions ensuring compliance with Hong Kong insurance and securities regulations

10. Assignment and Transfer: Process and requirements for transferring the insurance policy

11. Termination: Circumstances under which the agreement can be terminated and the consequences

12. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction for disputes

What sections are optional to include in a Viatical Settlement Contract?

1. Broker Provisions: Required when a licensed broker is involved in facilitating the transaction

2. Escrow Arrangements: Included when an escrow agent is used to handle the transfer of funds

3. Multiple Policy Provisions: Required when the settlement involves more than one life insurance policy

4. Power of Attorney: Included when the viator grants specific powers to the purchaser or their agent

5. Secondary Market Provisions: Required when the purchaser intends to sell or securitize their interest

6. Joint Policy Holder Provisions: Needed when the policy has multiple owners

7. Mental Capacity Provisions: Required when there are concerns about the viator's current or future mental capacity

What schedules should be included in a Viatical Settlement Contract?

1. Schedule 1 - Policy Details: Detailed information about the life insurance policy, including policy number, insurer, face value, and premium details

2. Schedule 2 - Purchase Price Calculation: Breakdown of the purchase price calculation and any adjustments

3. Schedule 3 - Medical Reports: List of medical reports and evaluations provided as part of the transaction

4. Schedule 4 - Required Notices: Copies of regulatory notices and disclosures required under Hong Kong law

5. Appendix A - Transfer Forms: Standard forms required by the insurance company for policy transfer

6. Appendix B - Medical Authorization Forms: Authorization forms for release of medical information

7. Appendix C - Payment Schedule: If payment is to be made in installments, detailed payment schedule and terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Document Type

Consent Form

Cost

Free to use
Relevant legal definitions












































Clauses






























Relevant Industries

Insurance

Financial Services

Healthcare

Legal Services

Investment Management

Banking

Professional Services

Relevant Teams

Legal

Compliance

Risk Management

Investment

Insurance Operations

Medical Underwriting

Policy Administration

Due Diligence

Financial Analysis

Actuarial

Relevant Roles

Insurance Underwriter

Compliance Officer

Legal Counsel

Financial Advisor

Investment Manager

Risk Manager

Medical Director

Policy Administrator

Settlement Specialist

Insurance Broker

Chief Investment Officer

Actuarial Analyst

Due Diligence Officer

Portfolio Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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