Viatical Settlement Agreement Template for Canada

The Viatical Settlement Agreement is utilized when a life insurance policyholder wishes to sell their policy to a third party for an immediate cash settlement, typically due to terminal illness or advanced age. This document, structured under Canadian legal framework, establishes the terms for transferring all rights and obligations of the life insurance policy from the original policyholder to the settlement provider. It must comply with federal insurance regulations and provincial securities laws, while addressing crucial aspects such as medical privacy, financial terms, and ongoing policy maintenance. The agreement includes comprehensive provisions for medical information sharing, price calculation, beneficiary changes, and regulatory compliance. It's particularly important that the document incorporates all required consumer protections and disclosures mandated by Canadian authorities, as viatical settlements are subject to strict regulatory oversight to prevent exploitation and ensure fair market practices.

1. Parties: Identifies the viator (policy owner), the settlement provider, and any other relevant parties such as escrow agents

2. Background: Outlines the context of the agreement, including the existence of the life insurance policy and the viator's intention to sell

3. Definitions: Defines key terms used throughout the agreement, including technical insurance and medical terms

4. Purchase and Sale: Details the basic transaction terms, including the purchase price and what exactly is being sold

5. Payment Terms: Specifies the amount, method, and timing of payment, including any escrow arrangements

6. Representations and Warranties: Statements by both parties regarding their capacity, authority, and the status of the insurance policy

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

8. Change of Ownership and Beneficiary: Process and requirements for transferring policy ownership and beneficiary rights

9. Confidentiality: Provisions protecting sensitive personal and medical information

10. Viator's Rights: Outlines the viator's rights, including any cooling-off period and cancellation rights

11. Insurance Company Requirements: Obligations regarding insurance company notifications and requirements

12. Regulatory Compliance: Statements ensuring compliance with applicable laws and regulations

13. Termination: Circumstances under which the agreement can be terminated

14. Governing Law and Jurisdiction: Specifies the applicable law and jurisdiction for dispute resolution

15. General Provisions: Standard contractual provisions including notices, amendments, and severability