Fla. Commissioner Issues Cease & Desist Order to Unlicensed Viatical

Florida Insurance Commissioner Kevin McCarty issued a Cease and Desist Order to Great West Growth, LLC of Minneapolis, Minnesota ordering Great West Growth to cease operating as a viatical settlement provider in Florida.

The Office of Insurance Regulation charged that Great West Growth has been transacting business without a license as required by Florida’s Viatical Settlement Act.

Evidence shows Great West Growth solicited, negotiated and processed numerous viatical settlement contracts involving life insurance policies owned by Florida residents, according to McCarty.

Viatical settlement providers buy life insurance policies from policyholders who sell their policies for a percentage of the face value. The viatical settlement provider then resells an interest in those policies to investors.

“It is critical that businesses and consumers ensure they are working with licensed entities when making important financial decisions,” McCarty said. “Not only are unauthorized entities acting illegally, but consumers do not have protections afforded them under the law, specifically, guaranteeing the underlying financial solvency of the entity doing business.”

Source: Florida Office of Insurance Regulation