Within how many days must a viatical settlement provider pay the settlement proceeds?

A viatical settlement provider is required to pay the settlement proceeds within a specified timeframe to ensure that policyholders receive their funds in a timely manner when they sell their life insurance policies. The correct answer reflects the legal requirement under Montana state law, which mandates that the payment must be made within three business days following the execution of the agreement to settle the policy.

This three-day timeframe is designed to provide a clear guideline that protects both the consumer and the provider, ensuring that the policyholder has quick access to the funds they need, especially in circumstances involving terminal illnesses or significant changes in health status. By establishing this limit, the law aims to enhance consumer trust and facilitate an efficient process in the often sensitive context of viatical settlements.