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A Life Settlement Agreement is utilized when a life insurance policyholder wishes to sell their policy to a third party for a value greater than the surrender value but less than the death benefit. This document, structured under Nigerian law and regulatory framework, is essential for documenting the terms and conditions of the policy transfer, including purchase price, payment terms, and ongoing obligations. It must comply with the Insurance Act 2003, NAICOM regulations, and other relevant Nigerian financial laws. The agreement is particularly relevant in cases where policyholders seek immediate liquidity or no longer need or can maintain their life insurance policies. It includes comprehensive provisions for due diligence, medical information sharing, policy maintenance, and regulatory compliance, ensuring protection for all parties involved in the transaction.

1. Parties: Identification of the Policy Owner (seller) and the Purchaser, including full legal names and addresses

2. Background: Context of the agreement, including reference to the existing life insurance policy and parties' intention to enter into a life settlement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Policy', 'Purchase Price', 'Closing Date', etc.

4. Sale and Purchase: Core transaction terms, including the agreement to sell and purchase the policy

5. Purchase Price and Payment: Detailed terms of the purchase price, payment method, and timing

6. Closing and Transfer Requirements: Requirements and procedures for completing the policy transfer

7. Representations and Warranties of the Policy Owner: Seller's confirmations regarding policy ownership, validity, and absence of encumbrances

8. Representations and Warranties of the Purchaser: Buyer's confirmations regarding authority, financial capacity, and regulatory compliance

9. Regulatory Compliance: Compliance with Nigerian insurance and financial regulations

10. Confidentiality: Obligations regarding confidential information and medical privacy

11. Post-Settlement Obligations: Ongoing obligations including premium payments and policy maintenance

12. Termination: Circumstances under which the agreement may be terminated

13. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

14. General Provisions: Standard contractual provisions including notices, amendments, and severability