Text: SSB03043 Text: SSB03045 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 508E.1 AUTHORITY OF THE 1 2 COMMISSIONER. 1 3 The commissioner shall regulate the sale of viatical 1 4 settlements as provided in this chapter. 1 5 Sec. 2. NEW SECTION. 508E.2 DEFINITIONS. 1 6 As used in this chapter, unless the context otherwise 1 7 requires: 1 8 1. "Chronically ill" means any of the following: 1 9 a. Being unable to perform or maintain at least two 1 10 activities of daily living, including but not limited to 1 11 eating, toileting, transferring, bathing, dressing, or 1 12 continence. 1 13 b. Requiring substantial supervision to protect the 1 14 individual from threats to health and safety due to severe 1 15 cognitive impairment. 1 16 c. Having a level of disability similar to that described 1 17 in paragraph "a" as determined by the United States secretary 1 18 of health and human services. 1 19 2. "Commissioner" means the commissioner of insurance. 1 20 3. "Terminally ill" means having an illness or sickness 1 21 that can reasonably be expected to result in death in twenty- 1 22 four months or less. 1 23 4. "Viatical settlement contract" means a written 1 24 agreement entered into between a viatical settlement provider 1 25 and a person who owns or is insured under a life insurance 1 26 policy or certificate, or who owns or is covered under a group 1 27 life insurance policy. "Viatical settlement contract" does 1 28 not mean a written agreement entered into between a viator and 1 29 a person having an insurable interest in the viator's life. 1 30 5. "Viator" means a person selling a life insurance policy 1 31 or certificate. 1 32 Sec. 3. NEW SECTION. 508E.3 VIATICAL SETTLEMENT CONTRACT 1 33 LIMITATIONS. 1 34 1. a. Subject to paragraph "b", a viatical settlement 1 35 contract shall not be entered into until after the contestable 2 1 period of the life insurance policy or certificate has 2 2 expired. 2 3 b. If a viatical settlement contract is entered into 2 4 during the contestable period of the life insurance policy or 2 5 certificate, a rebuttable presumption arises that it was the 2 6 intent of the person entering into such contract with a 2 7 viatical settlement provider to enter into such contract at 2 8 the time the life insurance policy or certificate was 2 9 originally purchased. If such person fails to rebut the 2 10 presumption, the viatical settlement contract is void. 2 11 2. A viatical settlement contract shall only be entered 2 12 into with an individual who is either terminally ill or 2 13 chronically ill. 2 14 Sec. 4. NEW SECTION. 508E.4 RULEMAKING AUTHORITY. 2 15 The commissioner shall adopt rules as necessary to 2 16 administer this chapter. Rules shall be adopted relating to 2 17 all of the following: 2 18 1. Advertising standards. 2 19 2. Disclosure. 2 20 3. Examinations. 2 21 4. Insurance company practices. 2 22 5. License requirements. 2 23 6. Prohibited practices. 2 24 7. Refund provisions. 2 25 8. Reporting. 2 26 9. Standards for reasonableness of payment. 2 27 10. Unfair trade practices. 2 28 11. Viatical settlement contracts. 2 29 EXPLANATION 2 30 This bill creates new Code chapter 508E and directs the 2 31 insurance commissioner to regulate the sale of viatical 2 32 settlement contracts. A viatical settlement involves the sale 2 33 to a viatical settlement provider of the death benefit under a 2 34 life insurance policy or certificate by a person who owns or 2 35 is insured under such a policy or certificate, or by a person 3 1 who owns or is covered under a group life insurance policy. 3 2 The bill provides generally that a viatical settlement 3 3 contract shall not be entered into until after the contestable 3 4 period of the policy has expired. However, if a viatical 3 5 settlement contract is entered into during the contestable 3 6 period of the life insurance policy or certificate, the bill 3 7 provides that a rebuttable presumption arises that it was the 3 8 intent of the person entering into such contract with a 3 9 viatical settlement provider to enter into such contract at 3 10 the time the life insurance policy or certificate was 3 11 originally purchased and if the person fails to rebut the 3 12 presumption, the viatical settlement contract is void. The 3 13 bill provides that a viatical settlement contract shall only 3 14 be entered into with an individual who is either terminally 3 15 ill or chronically ill. 3 16 The insurance commissioner is directed to adopt rules 3 17 necessary to administer the chapter, including rules relating 3 18 to advertising standards, disclosure, examinations, insurance 3 19 company practices, license requirements, prohibited practices, 3 20 refund provisions, reporting, standards for reasonableness of 3 21 payment, unfair trade practices, and viatical settlement 3 22 contracts. 3 23 LSB 5251DP 78 3 24 mj/gg/8.1
Text: SSB03043 Text: SSB03045 Text: SSB03000 - SSB03099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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