Who may be responsible for payment of the insurance premiums or other costs if the insured in a viatical contract returns to health?

In a viatical contract, the purchaser is an individual or entity that buys the life insurance policy from the insured, typically at a discount, while the insured is often facing terminal illness or chronic health issues. Once the insured's health improves, the responsibilities regarding the life insurance premiums may shift.

The correct answer identifies that the purchaser becomes responsible for the payment of premiums and other costs associated with the insurance policy if the insured returns to health. Since the purchaser is now the new policy owner after the viatical settlement, they assume all rights and obligations related to the policy, including the financial responsibilities of maintaining it.

In contrast, the insurer's role is to provide coverage based on the terms of the policy, but they do not take on payment responsibilities when a contract is executed. The beneficiary is typically designated to receive the death benefit upon the death of the insured but does not engage with premium payments nor has financial obligations regarding the policy. The original policyowner's rights may have been transferred as part of the viatical transaction, so they are also not responsible for the premiums once the sale is completed.