An existing life insurance policy is sold by the policyowner to help finance the cost...

Comprehensive and Detailed Step by Step Explanation:Aviatical settlementinvolves selling a life insurance policy to a third party for immediate cash, typically to cover expenses associated with terminal illnesses.

Viatical settlement (C):The policyowner receives a percentage of the death benefit to cover high medical costs or improve their quality of life.

Nonforfeiture options (A):Relate to preserving cash value if the policy lapses, not a sale.

Accelerated death benefit (B):Involves accessing a portion of the death benefit directly from the insurer, not through a third party.

Survivorship policies (D):Cover two insureds and pay the death benefit only after both have passed away, unrelated to this case.

References: Maryland Viatical Settlement Law and Insurance Code.