This seems like the most testable points right here:
It is the position of NASAA that VIATICAL INVESTMENTs, commonly known as investments in viatical, senior, or life settlement contracts, are securities and must be registered with a state securities division as required by state law. Further, those persons and/or entities selling them must be registered as required by state law.
And this also seems important:
VIATICAL INVESTMENTs, in general, may not be suitable for many investors. There are risks associated with VIATICAL INVESTMENTs that individual investors may not recognize, and which unscrupulous promoters may misrepresent or fail to disclose. Funds invested in VIATICAL INVESTMENTs are not accessible on the demand of the investor. These factors and others render this type of investment unsuitable for the financial needs and interests of the average individual investor.
What IS a "viatical investment," you ask?
Typically, a VIATICAL INVESTMENT involves the purchase by a VIATICAL INVESTOR of an interest in an insurance policy covering the life of an individual. The purchase may be for a whole or
fractional interest in the policy. Some interests may be in a pool of policies insuring the lives of several people. The INSURED receives an amount of money less than the expected death benefit of the policy, while the VIATICAL INVESTOR in turn receives the right to some portion of the face amount of the policy upon the death of the INSURED. Help with Series 65 Exam
For the complete NASAA guide: http://www.nasaa.org/wpcontent/uploads/2011/07/12NASAA_Guidelines_Regarding_Viatical_Investments.pdf.