The most useful thing a Hampton Roads policy owner can learn is not which company to call, but how to tell a licensed provider from a broker, how to verify either one with Virginia regulators, and which five questions expose a bad deal before you sign it. This page teaches that, and deliberately does not rank or recommend firms.
Almost every buyer in this market works remotely, by mail and secure upload. That means a company having an office in Virginia Beach or Norfolk tells you very little. Licensure, escrow and written disclosure tell you nearly everything.
If you own a policy in Virginia Beach, Norfolk, Chesapeake, Newport News or Hampton and someone has contacted you about buying it, work through the checks below before you send a single medical record.
In This Article
- Provider or Broker: Know Who You Are Talking To
- Verify the License With Virginia Regulators
- Escrow and the Rescission Window
- Five Questions That Reveal the Real Deal
- Why a Local Office Is Not a Screen
- Warning Signs Worth Walking Away From
- Compare the Offer Against Doing Nothing
- Request a Free Policy Review
- Frequently Asked Questions
Provider or Broker: Know Who You Are Talking To
A provider is the licensed entity that actually buys the policy and pays for it. Its interest is in acquiring the policy at a price that works for its investors.
A broker represents you, the policy owner, and owes you a duty in that capacity. A broker shops your file to multiple providers and is paid a commission out of the proceeds, which must be disclosed to you.
Both roles are legitimate. Problems start when a company is vague about which one it is playing, or acts as both without saying so. Ask directly, in writing, at the first conversation: are you the purchaser, or are you representing me and taking a commission from the proceeds?
Verify the License With Virginia Regulators
Virginia licenses life settlement providers and brokers under the viatical settlement provisions at Virginia Code Sec. 38.2-6000 et seq. Oversight belongs to the Virginia Bureau of Insurance, which sits inside the State Corporation Commission rather than operating as a standalone department. That structure trips people up when they go looking.
Ask for the exact legal entity name and license number, not a marketing brand. Then check it yourself through the Bureau’s license lookup. A company that hesitates to give you a license number in writing has answered your question.
Verify the entity that will actually appear on the contract. Marketing sites, lead-generation companies and call centers often front for a different legal entity, and the one that matters is the one signing.
Escrow and the Rescission Window
An independent escrow agent should hold the purchase funds. Ownership of the policy transfers to the buyer only once the money is in escrow and the closing conditions are met. If a company proposes any structure where you sign over ownership before funds are secured, stop.
Virginia law also provides a statutory rescission window after funding, commonly around 15 days, allowing a seller to unwind the transaction. Verify Virginia’s exact 2026 figure with the Bureau of Insurance and confirm the window is stated in your contract, not just described on a phone call.
Get the escrow agent’s name and confirm it is genuinely independent of the buyer. That single detail separates a properly run transaction from a risky one.
Five Questions That Reveal the Real Deal
First, what is the gross offer and what is my net, in dollars, after every commission and fee? Ask for both numbers side by side in writing. A gross offer with an undisclosed commission behind it is not an offer, it is a headline.
Second, who is paid what out of the proceeds, including any referring agent, broker or third party? Names and amounts.
Third, how many providers actually saw my file, and can you show me the bids? A broker who shopped the file to one buyer did not shop it.
Fourth, were two independent life expectancy reports ordered? Pricing rests almost entirely on life expectancy, and a single report from an affiliated firm is a weaker foundation than two independent ones.
Fifth, what happens to my medical records after the transaction, whether or not it closes? Ask about retention, deletion and who else receives them.
| Check | What to ask for | Where to verify | Red flag |
|---|---|---|---|
| Role | Are you the purchasing provider or my broker? | The written engagement or contract | Answer changes, or is never in writing |
| License | Exact legal entity name and license number | Virginia Bureau of Insurance, State Corporation Commission | Only a brand name is offered |
| Compensation | Gross offer and net to you, in dollars | Written offer summary | Commission described only verbally |
| Market coverage | How many providers bid on the file | Bid documentation from the broker | A single bid presented as the market |
| Underwriting | Two independent life expectancy reports | Copies of the LE reports | One report from an affiliated firm |
| Escrow | Name of the independent escrow agent | Escrow agreement | Ownership transfers before funding |
| Rescission | Written rescission window after funding | Contract language; verify Virginia’s 2026 period | Not stated in the contract |
Why a Local Office Is Not a Screen
Hampton Roads owners often assume they should look for a company with a presence in the region. In practice nearly all life settlement buyers operate remotely, using secure document upload, mail and notarized signatures. A local address is a marketing choice, not a consumer protection.
What protects you is the license, the escrow arrangement, the written disclosure of every dollar taken out of the proceeds, and the rescission right. Those apply whether the buyer sits in Norfolk or a thousand miles away.
If you do want local support, get it from professionals who owe you a duty: your own attorney and your own CPA, reading the contract before you sign it.
Warning Signs Worth Walking Away From
Pressure to sign quickly, especially language about an offer expiring in days, is a sales tactic rather than a market reality. Legitimate transactions take roughly 60 to 120 days and offers are supported by underwriting, not urgency.
Refusal to identify the licensed entity, reluctance to name the escrow agent, unwillingness to put net proceeds in writing, an upfront fee charged to you for a valuation, or a guaranteed dollar amount quoted before medical underwriting are all reasons to stop.
So is a request for medical records before you have verified who is receiving them. Your records are the most sensitive thing in this transaction and they should be released deliberately.
Compare the Offer Against Doing Nothing
Even a well-vetted offer should be measured against alternatives. Ask your carrier for the current cash surrender value in writing, what a reduced paid-up election would leave in force with no more premiums, and whether the policy already includes an accelerated death benefit or chronic illness rider.
For context, market settlements commonly fall between 10% and 35% of the death benefit, and GAO-10-775 found sellers received roughly four to eight times cash surrender value. If an offer sits far outside that landscape in either direction, ask why.
Request a Free Policy Review
If you want a straight read on whether your policy has secondary-market value before you talk to anyone else, send the policy cover page for a free, no-obligation review. You will get an honest answer, including when the answer is that surrender or a paid-up election serves you better.
Pine Lake Life Solutions reviews policies with $100,000 or more in death benefit and typically pays more than cash surrender value. Call (305) 209-7183.
This page is educational only and is not legal, tax or investment advice. Licensing requirements and rescission periods change; verify current rules with the Virginia Bureau of Insurance and have a licensed Virginia attorney or CPA review any settlement contract before you sign. For a free, no-obligation policy review, send the policy cover page or call (305) 209-7183.
Frequently Asked Questions
What is the difference between a life settlement provider and a broker?
A provider is the licensed entity that actually purchases the policy with its own or investor capital. A broker represents the policy owner, shops the file to multiple providers, and is paid a commission out of the proceeds that must be disclosed. Ask which role a company plays before sharing any documents.
How do I check whether a company is licensed in Virginia?
Get the exact legal entity name and license number, then verify it with the Virginia Bureau of Insurance, which operates within the State Corporation Commission. Confirm the licensed entity is the same one that will sign your contract, not a marketing affiliate. A company unwilling to provide a license number in writing should be avoided.
Does a company need an office in Hampton Roads to work with me?
No. Nearly all buyers handle transactions remotely through secure upload, mail and notarized signatures, so a local address is not a meaningful screen. Licensure, independent escrow, written fee disclosure and rescission rights are what protect you. Use local professionals for advice, not proximity for vetting.
How long is the rescission period in Virginia?
State rescission windows are commonly around 15 days from funding, but you should verify Virginia’s exact 2026 figure with the Bureau of Insurance. Make sure the period is written into the contract rather than merely mentioned by a representative. Rescission usually requires returning the proceeds.
Should I pay a fee for a policy valuation?
You should not be charged an upfront fee for a preliminary review of whether your policy is marketable. Legitimate compensation in this market comes out of transaction proceeds and is disclosed. Treat any request for money before an offer as a warning sign.
Why do two life expectancy reports matter?
Life expectancy drives the price more than any other input, so a single report leaves the valuation resting on one opinion. Two independent reports from unaffiliated firms give a more reliable range and make it harder to underprice a policy. Ask for copies of the reports used.
What happens to my medical records afterward?
Ask directly about retention, deletion and which third parties receive them, and get the answer in writing before signing a HIPAA authorization. Records typically go to underwriters and prospective purchasers, so the list can be longer than owners expect. You control when the authorization is signed.
Is a higher gross offer always the better deal?
Not necessarily. A larger gross offer with a bigger undisclosed commission behind it can net you less than a smaller one. Always compare net proceeds in dollars after every fee, and weigh the result against your cash surrender value and a reduced paid-up election.
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Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.