Our Viatical Settlements Module provides information on which Canadian provinces and territories prohibit viatical settlements. A viatical settlement is an arrangement whereby a person with a terminal illness sells their life insurance policy to a third party for more than its cash surrender value but less than the benefit payable upon death, in order to benefit from the proceeds while alive.
This information is current as of July, 2020.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 784 of the Insurance Act (Alberta) provides that:
784 Any person, other than a licensed life company, who
(a) through advertisements or other means makes it known that the person is willing to purchase life insurance policies or the benefits under those policies, or
(b) traffics or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of the benefits under those policies to any person
is guilty of an offence.
784 Any person, other than a licensed life company, who
(a) through advertisements or other means makes it known that the person is willing to purchase life insurance policies or the benefits under those policies, or
(b) traffics or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of the benefits under those policies to any person
is guilty of an offence.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 152 of the Insurance Act (British Columbia) provides that:
152 Any person, other than an insurer or its authorized agent, who advertises, or holds himself or herself out, as a purchaser of life insurance policies or of benefits under them, or who traffics or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of them to himself or herself or any person, commits an offence against this Act.
152 Any person, other than an insurer or its authorized agent, who advertises, or holds himself or herself out, as a purchaser of life insurance policies or of benefits under them, or who traffics or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of them to himself or herself or any person, commits an offence against this Act.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 90 of the Insurance Act (Manitoba) provides that:
90 No person other than an insurer or its duly authorized agent shall advertise or hold himself out as a purchaser of life insurance policies or benefits thereunder, nor shall he traffic or trade in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge, or hypothecation thereof, to himself or any other person; and if he does so he is guilty of an offence.
90 No person other than an insurer or its duly authorized agent shall advertise or hold himself out as a purchaser of life insurance policies or benefits thereunder, nor shall he traffic or trade in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge, or hypothecation thereof, to himself or any other person; and if he does so he is guilty of an offence.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 89 of the Insurance Act (Newfoundland and Labrador) provides that:
89 A person other than an insurer or its authorized agent who advertises or holds himself or herself out as a purchaser of life insurance policies or of benefits under life insurance policies or who trafficks or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of them to himself or herself or another person is guilty of an offence.
89 A person other than an insurer or its authorized agent who advertises or holds himself or herself out as a purchaser of life insurance policies or of benefits under life insurance policies or who trafficks or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of them to himself or herself or another person is guilty of an offence.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 84.1 of the Insurance Act (New Brunswick) provides that:
Dealing or trading in life insurance policies prohibited
84.1(1) Any person, other than an insurer or its authorized agent, who advertises or holds themselves out as a purchaser of life insurance policies or of benefits under life insurance policies, or who deals or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to themselves or any other person, is guilty of an offence.
84.1(2) Despite subsection (1), a person or class of persons authorized by the regulations to advertise or hold themselves out as a purchaser of life insurance policies or of benefits under life insurance policies or to deal or trade in life insurance policies for the purposes set out in subsection (1) is not guilty of an offence.
Dealing or trading in life insurance policies prohibited
84.1(1) Any person, other than an insurer or its authorized agent, who advertises or holds themselves out as a purchaser of life insurance policies or of benefits under life insurance policies, or who deals or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to themselves or any other person, is guilty of an offence.
84.1(2) Despite subsection (1), a person or class of persons authorized by the regulations to advertise or hold themselves out as a purchaser of life insurance policies or of benefits under life insurance policies or to deal or trade in life insurance policies for the purposes set out in subsection (1) is not guilty of an offence.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 32 of the Insurance Act (Northwest Territories) provides that:
32 Every person, other than an insurer or its duly life insurance polices authorized agent, who advertises or holds himself or policies herself out as a purchaser of life insurance policies of benefits under life insurance policies, or who trafficks or trades in life insurance policies for purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to himself or herself or any other person, is guilty of an offence.
32 Every person, other than an insurer or its duly life insurance polices authorized agent, who advertises or holds himself or policies herself out as a purchaser of life insurance policies of benefits under life insurance policies, or who trafficks or trades in life insurance policies for purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to himself or herself or any other person, is guilty of an offence.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 226A of the Insurance Act (nova Scotia) provides that:
Prohibition on trading of life insurance or benefits
226A (1) Any person, other than an insurer or its authorized agent, who advertises or purports to be a purchaser of insurance or of benefits under insurance or who deals or trades in insurance for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of insurance to the person or any other person is guilty of an offence.
(2) Subsection (1) does not apply to a person or class of person authorized by the regulations to advertise or purport to be a purchaser of insurance or of benefits under insurance.
(3) Any sale, surrender, transfer, assignment, pledge or hypothecation of insurance that would result in an offence under subsection (1) is void.
Prohibition on trading of life insurance or benefits
226A (1) Any person, other than an insurer or its authorized agent, who advertises or purports to be a purchaser of insurance or of benefits under insurance or who deals or trades in insurance for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of insurance to the person or any other person is guilty of an offence.
(2) Subsection (1) does not apply to a person or class of person authorized by the regulations to advertise or purport to be a purchaser of insurance or of benefits under insurance.
(3) Any sale, surrender, transfer, assignment, pledge or hypothecation of insurance that would result in an offence under subsection (1) is void.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 32 of the Insurance Act (Nunavut) provides that:
32 Every person, other than an insurer or its duly authorized agent, who advertises or holds himself or herself out as a purchaser of life insurance policies or of benefits under life insurance policies, or who trafficks or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to himself or herself or any other person, is guilty of an offence.
32 Every person, other than an insurer or its duly authorized agent, who advertises or holds himself or herself out as a purchaser of life insurance policies or of benefits under life insurance policies, or who trafficks or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to himself or herself or any other person, is guilty of an offence.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 115 of the Insurance Act (Ontario) provides that:
115 Any person, other than an insurer or its duly authorized agent, who advertises or holds himself, herself or itself out as a purchaser of life insurance policies or of benefits thereunder, or who trafficks or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation thereof to himself, herself or itself or any other person, is guilty of an offence.
115 Any person, other than an insurer or its duly authorized agent, who advertises or holds himself, herself or itself out as a purchaser of life insurance policies or of benefits thereunder, or who trafficks or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation thereof to himself, herself or itself or any other person, is guilty of an offence.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 73(2) of the Insurance Act (Prince Edward Island) provides that:
Holding out as purchaser, seller, transferor etc. of life insurance policies, restricted
(2)No person other than an insurer or its duly authorized agent shall advertise or hold himself out as a purchaser of life insurance policies or benefits thereunder, nor shall he traffic or trade in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation thereof, to himself or any other person, and if he does so, he is guilty of an offence.
Holding out as purchaser, seller, transferor etc. of life insurance policies, restricted
(2)No person other than an insurer or its duly authorized agent shall advertise or hold himself out as a purchaser of life insurance policies or benefits thereunder, nor shall he traffic or trade in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation thereof, to himself or any other person, and if he does so, he is guilty of an offence.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
N/A
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 7-16 of the Insurance Act (Saskatchewan) provides that:
Trading in life insurance policies
7-16 Unless specifically authorized in the regulations to do so, no person other than a life company shall:
(a) advertise or hold himself, herself or itself out as a purchaser of life insurance policies or of benefits under life insurance policies; or
(b) traffic or trade in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to himself, herself or itself or any other person.
Trading in life insurance policies
7-16 Unless specifically authorized in the regulations to do so, no person other than a life company shall:
(a) advertise or hold himself, herself or itself out as a purchaser of life insurance policies or of benefits under life insurance policies; or
(b) traffic or trade in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to himself, herself or itself or any other person.
1. Which jurisdictions expressly prohibit trafficking or trading in life insurance policies?
Section 41 of the Insurance Act (Yukon) provides that:
41 Any person, other than an insurer or its duly authorized agent, who advertises or holds themselves out as a purchaser of life insurance policies or of benefits thereunder, or who traffics or trades in life insurance policies for purpose of procuring the sale, surrender, transfer, assignment, pledge, or thereof to the person or any other person, is guilty of an offence.
41 Any person, other than an insurer or its duly authorized agent, who advertises or holds themselves out as a purchaser of life insurance policies or of benefits thereunder, or who traffics or trades in life insurance policies for purpose of procuring the sale, surrender, transfer, assignment, pledge, or thereof to the person or any other person, is guilty of an offence.
