What role does a viatical settlement broker play in the settlement process?

A viatical settlement broker plays a crucial role in the viatical settlement process by acting as an intermediary between individuals who are selling their life insurance policies, known as viators, and potential buyers, which could be institutional investors or other entities interested in purchasing those policies. The primary function of the broker involves negotiating the terms of the contract on behalf of the viator. This includes helping the seller understand the offers they receive for their policies and ensuring that they get the most favorable terms available within the settlement.

The primary reason for this role is that viators often lack the knowledge or negotiating power to secure the best settlement. By representing the interests of the viator, the broker ensures that the process is fair and beneficial to the seller. This expertise is critical because viatical settlements can involve complex financial and legal issues that need to be navigated expertly.

In this context, the other options do not accurately describe the role of a viatical settlement broker. They are not involved in providing insurance policies, underwriting them, or investigating claims related to the policies. Instead, their specific focus is on facilitating the arrangement and negotiation of settlements for those selling their life insurance for immediate cash value, primarily due to terminal illness or severe health conditions.