Montana State Life Insurance Practice Exam 2026 - Free Life Insurance Practice Questions and Study Guide

In a viatical settlement, the producer represents the viator, who is the individual selling their life insurance policy to a third party in exchange for immediate cash. The role of the producer in this context is to facilitate the transaction by helping the viator understand their options and ensuring that the process complies with relevant regulations.

Viatical settlements often involve individuals who have a terminal illness and need access to funds. The producer's duty is to the viator, as they navigate the complexities of the settlement and advocate for the policyholder's best interests throughout the transaction. This relationship ensures that the viator receives a fair deal and that their rights are protected during the sale of their policy.

Understanding who the producer represents is essential for ensuring that the policyholder receives appropriate guidance and support in a situation that significantly impacts their financial wellbeing.