(March 1 – 17:00 ET) – The Financial Services Commission of Ontario says that Universal Settlements International Inc. has received notice of a proposed Cease and Desist Order from the Superintendent of Financial Services. The order directs the company to stop dealing in viatical settlements in Ontario.

Viatical settlements allow a life insurance policy owner to sell the policy to a third party at a discount from the face value of the policy. Currently, viatical settlements are not legal in Ontario. Under the Insurance Act, only insurance companies or their agents can trade in life insurance policies. Universal Settlements is not licenced with FSCO in any way.

Legislation passed in December, 2000, will allow viatical settlements in Ontario, but this law will not take effect until regulations designed to ensure the protection of the terminally ill are also introduced. Persons engaged in viatical settlement activity will be subject to regulation under the Insurance Act.
-IE Staff