Public Act 54 of 2006

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• Introduced by Sen. Tom Buford (R) on January 20, 2006, to provide that an insurance agent licensed with a life line of authority shall be deemed to meet the requirements of a viatical settlement broker without obtaining a license as a viatical settlement broker. The bill would require a life insurance agent operating as a viatical settlement broker to have in force evidence of financial responsibility in the form of an insurance policy in the sum of not less than $20,000 for any single occurrence and $100,000 in the aggregate for all occurrences in 1 year, or cash deposited with the executive director in the sum of $20,000, or an agreement with a viatical settlement provider that the provider assumes the responsibility. The bill would exempt life insurance agents operating as viatical settlement brokers from the viatical settlement brokers financial responsibility requirement of $500,000 for one occurrence and $1.5 million in the aggregate for all occurrences in one year.
  • Referred to the Senate Banking and Insurance Committee on January 24, 2006.
  • Substitute offered in the Senate on February 10, 2006, to provide that one option for proof of financial responsibility may include an agreement between the viatical settlement provider and the agent to add the agent as an additional insured on the viatical settlement provider's errors and omission insurance in the amount of $20,000, rather than allowing the viatical settlement provider to enter an agreement assuming responsibility for the agent.
  • The substitute passed in the Senate by voice vote on February 22, 2006.
• Passed in the Senate (37 to 1) on February 22, 2006, to provide that an insurance agent licensed with a life line of authority shall be deemed to meet the requirements of a viatical settlement broker without obtaining a license as a viatical settlement broker. The amended bill would provide that one option for proof of financial responsibility may include an agreement between the viatical settlement provider and the agent to add the agent as an additional insured on the viatical settlement provider's errors and omission insurance in the amount of $20,000. [Vote Details and Comments]
• Received in the House on February 23, 2006.
  • Referred to the House Banking and Insurance Committee on February 28, 2006.
  • Reported in the House on March 8, 2006, favorably, 1st reading, to Calendar .
• Passed in the House (99 to 0) on March 15, 2006, to provide that one option for proof of financial responsibility may include an agreement between the viatical settlement provider and the agent to add the agent as an additional insured on the viatical settlement provider's errors and omission insurance in the amount of $20,000, rather than allowing the viatical settlement provider to enter an agreement assuming responsibility for the agent. [Vote Details and Comments]
• Signed by Gov. Ernie Fletcher on March 28, 2006, to provide that one option for proof of financial responsibility may include an agreement between the viatical settlement provider and the agent to add the agent as an additional insured on the viatical settlement provider's errors and omission insurance in the amount of $20,000, rather than allowing the viatical settlement provider to enter an agreement assuming responsibility for the agent.