Viatical Settlement Contract Template for Nigeria

The Viatical Settlement Contract is utilized in Nigeria when a life insurance policy owner wishes to sell their policy to a third party for immediate cash consideration. This specialized agreement, regulated under Nigerian insurance and securities laws, is particularly relevant when policy owners need immediate access to funds, often due to medical or financial circumstances. The document covers crucial aspects including policy valuation, transfer mechanics, ongoing obligations, and regulatory compliance requirements. It must align with the Insurance Act of 2003, NAICOM regulations, and other relevant Nigerian legislation. The contract includes detailed provisions for medical information sharing, premium payment responsibilities, and beneficiary rights transfer, while ensuring adequate consumer protection and transparency in line with Nigerian financial regulations.

1. Parties: Identification of the Policy Owner (Viator), the Viatical Settlement Provider, and any relevant third-party purchasers or administrators

2. Background: Context of the agreement, including brief description of the life insurance policy and the parties' intention to enter into a viatical settlement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including technical insurance and financial terms

4. Policy Details: Comprehensive information about the life insurance policy being sold, including policy number, insurer, face value, and current status

5. Purchase Price and Payment Terms: Details of the settlement amount, payment method, and timing of payments

6. Transfer and Assignment: Terms governing the transfer of policy ownership and beneficiary rights

7. Representations and Warranties: Statements of fact and assurances from both the viator and the settlement provider

8. Medical Information and Privacy: Provisions regarding medical information disclosure, confidentiality, and ongoing medical updates

9. Rights and Obligations: Ongoing responsibilities of all parties, including premium payments and information disclosure requirements

10. Rescission Rights: The viator's right to cancel the agreement within the statutory period

11. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

12. Termination: Circumstances under which the agreement may be terminated and the consequences

13. Execution: Signature blocks and execution requirements