Florida Life and Health Insurance License Practice Test

To whom may a life insurance policyowner sell their policy to receive a portion of its value?

1. Viatical settlement provider

2. Disability insurer

3. Health insurance company

4. Life insurance broker

The correct answer is: Viatical settlement provider

A life insurance policyowner may sell their policy to a viatical settlement provider in order to receive a portion of its value. A viatical settlement provider is a company that buys life insurance policies from policyowners at a discounted price and then collects the death benefit when the policyholder passes away. This option is not available with a disability insurer, as they only provide benefits in the case of the policyholder becoming disabled. Additionally, a health insurance company only provides coverage for medical expenses and does not offer any options for selling a life insurance policy. A life insurance broker acts as a middleman between the policyowner and the insurance company, and does not have the authority to purchase the policy from the owner. Therefore, the correct option for selling a life insurance policy and receiving a portion of its value is a viatical settlement provider.