Chapter 5 — Ethics & Fiduciary Responsibilities

The ethical dimension of lifetime settlements is particularly important because the clients most likely to be involved — the terminally ill and the elderly — are among the most vulnerable members of society. The settlement transaction, by its nature, involves sensitive personal and medical information and significant financial decisions that can have lasting consequences for families and beneficiaries.

The important points addressed in this chapter are:

• Suitability considerations in recommending a settlement transaction
• Required disclosures to viators by brokers and providers
• Privacy protections for personal and medical information
• Fiduciary responsibilities of the viatical settlement broker
• Ethical standards for advertising and marketing of settlement products
• Conflicts of interest and how they must be managed