Topeka ? State officials have issued a warning to Kansans who have invested in viatical contracts sold by Mutual Benefits Corp. of Fort Lauderdale, Fla.

Insurance Commissioner Sandy Praeger and Securities Commissioner Chris Biggs said the company was the subject of a lawsuit alleging it engaged in questionable marketing practices.

Praeger said in one case a widow placed her husband’s life insurance policy into viatical investments. “Sadly, she is currently living on Social Security benefits because her money is locked into the investment,” Praeger said.

In a viatical contract, a policyholder sells a life insurance policy to a viatical settlement company that sells the right to receive the death benefits to investors.

Praeger and Biggs urged Kansans to check with their offices to verify whether a company they are considering doing business with is in good standing.

Any Kansas investor who purchased a viatical contract from Mutual Benefits is urged to call an anti-fraud hotline at (800) 460-7972.