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Common misrepresentations and omissions
As a prospective investor, you are entitled to a full disclosure of all
material facts regarding the investment. Therefore, you should be aware of
common misrepresentations and omissions made by sales agents when they solicit
prospective investors.
Risks
Clean Sheeting:
A practice in which a viatical issuer or its affiliate will induce terminally
ill persons to obtain life insurance policies fraudulently (by lying on the
application about their terminal illness). The viatical issuer then purchases
the fraudulently obtained policy and resells it to investors. When the insurer
later determines that the policy was obtained by fraud, the insurer will not
pay. The investor loses their entire investment while the issuer, who has
already made their profit, wins. | |
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