The first thing a Washington-area policy owner needs to know is not which company is best, but which kind of company they are talking to: a provider, which is the licensed entity that actually buys the policy, or a broker, which represents you, shops the policy to multiple providers, and is paid a commission out of your proceeds. Those are different roles with different duties, and the answer changes how you should read every number you are shown.
This page does not rank companies and does not publish a directory. It gives you the checks a careful seller runs before signing anything, written for owners in the Washington, D.C. area, which covers the District plus Montgomery and Prince George’s counties in Maryland and Fairfax and Arlington counties in Virginia.
One useful thing to know up front: nearly every buyer in this market works remotely by mail and secure upload. A local office is not a meaningful screen. Licensure and disclosure are.
In This Article
- Provider or Broker: Ask Before You Talk Numbers
- Verify the License Before Anything Else
- Escrow and the Rescission Window
- Gross Offer Versus Net to You
- How Many Buyers Actually Saw Your File
- Your Medical Records After the Sale
- Red Flags Worth Walking Away From
- Where Pine Lake Fits
- Frequently Asked Questions
Provider or Broker: Ask Before You Talk Numbers
A provider is licensed to purchase policies and is buying for its own account or for an institutional funder. Its interest is in acquiring the policy at a price that works for the buyer. A broker does not buy anything; it represents the policy owner, solicits bids from multiple providers, and earns a commission from the proceeds when a sale closes.
Both roles are legitimate and both are regulated. The problem is only when the role is fuzzy. Ask the question directly at the first call: are you buying my policy, or are you shopping it? Then ask them to put the answer in writing along with how they are paid.
Verify the License Before Anything Else
The District of Columbia licenses life settlement providers and brokers under the District’s viatical settlement provisions at D.C. Code Sec. 31-5011 et seq. (verify the current citation). Check any counterparty against the D.C. Department of Insurance, Securities and Banking (DISB) license lookup. If the owner lives in Montgomery, Prince George’s, Fairfax, or Arlington county, run the same check with the Maryland Insurance Administration or the Virginia Bureau of Insurance instead.
Verification takes minutes and it is the single highest-value thing a seller can do. A company that hesitates when you ask for its license number in the state where you live has told you what you needed to know.
Escrow and the Rescission Window
In a properly structured transaction, the purchase funds sit with an independent escrow agent, not with the buyer, and they are released to you only after the carrier confirms the ownership and beneficiary change. You should never be asked to transfer ownership on the promise of payment afterward.
You should also receive a written statutory rescission right, commonly around 15 days from funding, though you should verify the District’s 2026 figure and the equivalent Maryland or Virginia period. Rescission generally requires returning the money, so it is a genuine unwind, not a free look.
Gross Offer Versus Net to You
The number a seller remembers is the headline offer. The number that matters is what lands in your account after commissions and fees. Ask for both in dollars on the same page, with every deduction itemized and named.
If a broker is involved, ask what percentage of the gross the commission represents and whether any portion is shared with a referring party. Disclosure of compensation is a regulatory expectation, not a courtesy, and a written answer costs the company nothing if the answer is clean.
| Question to ask | What a solid answer sounds like | Why it matters |
|---|---|---|
| Are you a provider or a broker? | A clear label plus written confirmation | Defines who is representing whom |
| What is your license number in my state? | Number given immediately, verifiable with the regulator | Unlicensed counterparties are a hard stop |
| Gross offer and net to me, in dollars? | Both figures on one page, deductions itemized | Commissions can be a large share of the gross |
| How many providers saw my file? | A specific count and the bid range | One offer is not a market test |
| How many life expectancy reports? | Two independent reports ordered | Pricing hinges on life expectancy |
| Who holds the funds? | A named independent escrow agent | Protects you between transfer and payment |
| What is my rescission period? | A written number of days from funding | Your only unwind right after closing |
| What happens to my medical records? | Retention, sharing, and destruction policy in writing | You are releasing your full chart |
How Many Buyers Actually Saw Your File
A policy shown to one provider is not a market test. Ask how many licensed providers received the file, how many responded, and what the range of bids looked like. A single unopposed offer is not evidence of fair value, no matter how large it sounds relative to surrender value.
Ask also whether two independent life expectancy reports were ordered. Pricing turns almost entirely on life expectancy, and a single report from one underwriter gives the buyer more control over the number than a seller should be comfortable with.
Your Medical Records After the Sale
Underwriting requires medical records, which means you sign a HIPAA authorization and strangers read your chart. Ask what happens to those records after the transaction: who retains them, for how long, whether they are shared with investors or tracking services, and how the file is destroyed if no sale occurs.
Buyers also typically contact the insured periodically after closing to confirm status. Ask how often, by what method, and whether you can designate a family member as the contact. Getting that in writing prevents an unpleasant surprise years later.
Red Flags Worth Walking Away From
Pressure to sign the same day. Refusal to name the licensed provider behind the offer. A fee requested up front for a valuation, appraisal, or application. Funds not held in independent escrow. Any suggestion that you should not have an attorney or CPA look at the contract.
None of those are close calls. A legitimate transaction survives a week of review by your own advisors, and any buyer worth dealing with expects you to take that week.
Where Pine Lake Fits
Pine Lake Life Solutions provides free, no-obligation policy reviews for policies with $100,000 or more in death benefit. The review starts with the policy cover page and comes back in a day or two with a straight assessment of whether the secondary market is worth pursuing.
You stay in control throughout, and you remain the policy owner unless you sign a settlement contract yourself. Send the cover page or call (305) 209-7183.
This page is educational only and is not legal, tax, or investment advice. Medicaid rules, insurance statutes, and care costs change; verify every figure against current agency guidance and talk to a licensed elder law attorney or tax professional before you act. To get a free, no-obligation policy review, send the policy cover page or call (305) 209-7183.
Frequently Asked Questions
Does the company need an office in Washington, D.C.?
No. Nearly all buyers work remotely by mail and secure document upload, so a local address tells you very little. What matters is whether the company is licensed in the state where the policy owner legally resides.
How do I check a license?
Use the D.C. Department of Insurance, Securities and Banking license lookup for District residents, or the Maryland or Virginia insurance regulator for owners in Montgomery, Prince George’s, Fairfax, or Arlington county. Ask the company for its exact licensed entity name, since marketing names often differ.
Should I use a broker or go straight to a provider?
A broker can create competition among providers, which often raises the gross offer, but the commission comes out of your proceeds. A direct provider avoids that commission but gives you one bid. Compare the net dollars either way, not the headline.
Is a fee ever appropriate up front?
A legitimate policy review costs nothing. Be very cautious about any request for an advance fee for a valuation, appraisal, or application, and never pay one to release an offer. Compensation should come out of a completed transaction.
What is the rescission window?
It is a statutory period after funding during which you can unwind the sale, commonly around 15 days, though it varies by state and should be verified for 2026. Rescission generally requires returning the proceeds and any premiums the buyer paid.
Why do buyers want two life expectancy reports?
Because the price of the policy is driven almost entirely by the life expectancy estimate. Two independent reports from separate underwriters reduce the influence of any single opinion and give the seller a fairer basis for pricing.
Can I have my own attorney review the contract?
Yes, and you should. A settlement contract permanently transfers ownership of an asset, and an elder law or estate attorney will read it differently than a salesperson describes it. Any buyer discouraging outside review is telling you something.
What does Pine Lake charge for a review?
Nothing. Send the policy cover page for a free, no-obligation review of a policy with $100,000 or more in death benefit. You keep ownership and control unless you decide to sign a settlement contract.
Find out what your policy is worth — free, confidential, no obligation.
A 15-minute educational review covers your eligibility, every alternative, and a realistic view of what each path would net you.
Related Reading
- How It Works Policy Options
- What Policies Qualify For Life Settlement
- Life Settlement Licensing Maryland
- Life Settlement Licensing Virginia
- Life Settlement Taxes Virginia
- Education Center
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.