Ohio Insurance Laws and Regulations Practice Exam

Jim recently sold his whole life insurance policy under a viatical settlement contract. The proceeds of this contract could be subject to the claims of?

1. Creditors

2. The IRS

3. The insurer

4. None

The correct answer is: Creditors

Based on the context given, it can be understood that Jim sold his whole life insurance policy under a viatical settlement contract. This means that he sold his policy to a third party in exchange for a lump-sum payment. This payment could potentially be subject to the claims of creditors, meaning that if Jim owes any debts or liabilities, creditors may have the right to claim a portion or all of the proceeds from the viatical settlement contract. This is because the proceeds from a viatical settlement are considered as an asset and can be used to satisfy outstanding debts. The other options, such as the IRS or the insurer, may not have a claim on the proceeds unless there are specific circumstances involved. Therefore, it can be concluded that creditors are the correct answer in this scenario. Additionally, the option "None" is incorrect as it implies that there are no potential claimants, but as mentioned, creditors can