LIFE INSURANCE; LEGISLATION; INSURANCE (GENERAL);

INSURANCE;

You asked for a summary of a Senate amendment (LCO 6151) to “An Act Concerning Viatical Settlements. ”

Senate Amendment LCO 6151 makes the following changes to SB 916:

1. It eliminates a provision of the bill that requires a viatical settlement broker to disclose to a prospective viator the amount and method of calculating his compensation and the timeframe and method of making the disclosure.

2. It limits the requirement that a viatical settlement provider obtain the insured’s consent to the release of his medical records to the insurance company that issued the life insurance policy by specifying that this consent may be obtained only if the life insurance policy covering the insured was issued within 48 months of the date of the viator’s application for a viatical settlement contract.

3. It limits the exemptions from the bill’s prohibition against any person entering into a viatical settlement contract within two years after the policy was issued to the following situations: (a) the viator or insured is terminally or chronically ill or (b) the viator disposed his ownership interest in a closely held corporation under a buyout or similar agreement in effect when the insurance policy was initially issued.

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