Text: SF00409 Text: SF00411 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1
1 2 SENATE FILE 410
1 3
1 4 AN ACT
1 5 PROVIDING FOR THE REGULATION OF VIATICAL SETTLEMENT
1 6 CONTRACTS WHEN SOLD AS INVESTMENTS.
1 7
1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 9
1 10 Section 1. Section 502.102, subsection 13, Code 1999, is
1 11 amended by adding the following new paragraph:
1 12 NEW PARAGRAPH. c. With respect to a viatical settlement
1 13 contract, "issuer" means a person involved in creating,
1 14 transferring, or selling to an investor any interest in such a
1 15 contract, including but not limited to fractional or pooled
1 16 interests, but does not include an agent or a broker-dealer.
1 17 Sec. 2. Section 502.102, subsection 19, Code 1999, is
1 18 amended to read as follows:
1 19 19. "Security" means any note; stock; treasury stock;
1 20 bond; debenture; evidence of indebtedness; certificate of
1 21 interest or participation in a profit sharing agreement;
1 22 collateral trust certificate; preorganization certificate or
1 23 subscription; transferable share; investment contract;
1 24 viatical settlement contract, or any fractional or pooled
1 25 interest in such contract; voting trust certificate;
1 26 certificate of deposit for a security; fractional undivided
1 27 interest in an oil, gas, or other mineral lease or in payments
1 28 out of production under such a lease, right, or royalty; an
1 29 interest in a limited liability company or in a limited
1 30 liability partnership or any class or series of such interest,
1 31 including any fractional or other interest in such interest;
1 32 or, in general, any interest or instrument commonly known as a
1 33 "security", or any certificate of interest or participation
1 34 in, temporary or interim certificate for, receipt for,
1 35 guarantee of, or warrant or right to subscribe to or purchase,
2 1 any of the foregoing. "Security" does not include an
2 2 insurance or endowment policy or annuity contract under which
2 3 an insurance company promises to pay money either in a lump
2 4 sum or periodically for life or for some other specified
2 5 period. "Security" also does not include an interest in a
2 6 limited liability company or a limited liability partnership
2 7 if the person claiming that such an interest is not a security
2 8 proves that all of the members of the limited liability
2 9 company or limited liability partnership are actively engaged
2 10 in the management of the limited liability company or limited
2 11 liability partnership; provided that the evidence that members
2 12 vote or have the right to vote, or the right to information
2 13 concerning the business and affairs of the limited liability
2 14 company or limited liability partnership, or the right to
2 15 participate in management, shall not establish, without more,
2 16 that all members are actively engaged in the management of the
2 17 limited liability company or limited liability partnership.
2 18 Sec. 3. Section 502.102, Code 1999, is amended by adding
2 19 the following new subsection:
2 20 NEW SUBSECTION. 20A. "Viatical settlement contract" means
2 21 an agreement for the purchase, sale, assignment, transfer,
2 22 devise, or bequest of any portion of the death benefit or
2 23 ownership of a life insurance policy or contract, for
2 24 consideration which is less than the expected death benefit of
2 25 the life insurance policy or contract.
2 26 Sec. 4. Section 502.202, Code 1999, is amended by adding
2 27 the following new subsection:
2 28 NEW SUBSECTION. 19. A viatical settlement contract, or
2 29 fractional or pooled interest in such contract, provided any
2 30 of the following conditions are satisfied:
2 31 a. The assignment, transfer, sale, devise, or bequest of a
2 32 death benefit of a life insurance policy or contract, is made
2 33 by the viator to an insurance company as provided under Title
2 34 13, subtitle 1.
2 35 b. The assignment, transfer, sale, devise, or bequest of a
3 1 life insurance policy or contract, for any value less than the
3 2 expected death benefit, is made by the viator to a family
3 3 member or other person who enters into no more than one such
3 4 agreement in a calendar year.
3 5 c. A life insurance policy or contract is assigned to a
3 6 bank, savings bank, savings and loan association, credit
3 7 union, or other licensed lending institution as collateral for
3 8 a loan.
3 9 d. Accelerated benefits are exercised as provided in the
3 10 life insurance policy or contract and consistent with
3 11 applicable law.
3 12
3 13
3 14
3 15 MARY E. KRAMER
3 16 President of the Senate
3 17
3 18
3 19
3 20 RON J. CORBETT
3 21 Speaker of the House
3 22
3 23 I hereby certify that this bill originated in the Senate and
3 24 is known as Senate File 410, Seventy-eighth General Assembly.
3 25
3 26
3 27
3 28 MICHAEL E. MARSHALL
3 29 Secretary of the Senate
3 30 Approved , 1999
3 31
3 32
3 33
3 34 THOMAS J. VILSACK
3 35 Governor
Text: SF00409 Text: SF00411 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 1999 Cornell College and League of Women Voters of Iowa
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