Disclaimer
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Disclosure Notice and Advice to Policy Owner and Insured

1. Some or all proceeds of your viatical/life settlement may be taxable under federal income tax and state franchise and income taxes. Chesapeake Financial Settlements, LLC urges you to consult your own attorney and/or tax advisor concerning the transaction. Chesapeake Financial Settlements, LLC makes no representations and gives no advice concerning the tax treatment of the proceeds of this transaction. Information on these options should be obtained from your financial advisor.

2. There are many alternatives to the life/viatical settlement process for which you may be eligible, including but not limited to: a) “Accelerated or Living Benefits Options” offered by the insurer, b) borrowing against the cash value of the policy, or c) surrendering the policy for cash value. Information on these options should be obtained from your financial advisor.

3. Some or all of your life/viatical settlement transaction may strongly affect your eligibility for Medicaid, supplemental Social Security Income or other government benefits and entitlements. Advice on such effects should be obtained from appropriate agencies or obtained from your financial advisor.

4. The proceeds of a life/viatical settlement could be available to successful civil claims, bankruptcy trustees, or creditors.

5. Your entering into a contract may cause other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the policy, to be forfeited by the viator. Assistance should be sought from a financial advisor.

6. Chesapeake Financial Settlements, LLC will be compensated. The broker commission is based on a weighted formula that is a percentage of the Net Offer (Gross Offer from provider – Cash Surrender Value). In the interest of the policy owner/viator, this weighted percentage will only increase according to increases in the net offer as a percentage of the cash surrender value, but will never exceed the lesser of 33.33% of the Net Offer or 6% of the policy’s Face Amount. Compensation can include, but is not limited to bonuses, overrides, or other funds in addition to broker’s commissions.

7. Chesapeake Financial Settlements, LLC will only process your life insurance policy through licensed life/viatical providers/purchasing companies to the extent required by applicable law.

8. Once you have received your proceeds from the sale of your life insurance policy, you will have thirty (30) days from the date of the contract or fifteen (15) days from the receipt of the settlement proceeds, whichever is less, in which to rescind the transaction. If the insured dies during the rescission period, the settlement contract shall be deemed rescinded, subject to repayment of all life/viatical settlement proceeds and any premiums, loans and loan interest to the viatical/life settlement provider or purchaser.

9. Funds will be sent to you within three (3) business days after the life/viatical settlement provider has received the insurer or group administrator’s acknowledgment that ownership of the policy or interest in the certificate has been transferred and the beneficiary been designated.

10. The insured may be contacted by either the life/viatical settlement provider or Chesapeake Financial Settlements, LLC or its authorized representatives for the purpose of determining the insured’s health status. This contact will be limited to no more frequently than once every three (3) months if the insured has a life expectancy of more than one year, and not more than once per month if the insured has a life expectancy of a year or less.

11. All medical, financial, or personal information solicited or obtained by a viatical/life settlement provider or life/viatical settlement broker about an insured, including the insured’s identity or the identity of family members, a spouse or significant other may be disclosed as necessary to effect the life/viatical settlement between the viator and the life/viatical settlement provider. If you are asked to provide this information, you will be asked to consent to the disclosure. The information may be presented to someone who buys the policy or provides the funds for the purchase. You may be asked to renew your permission to share information every two years.