Delaware General Assembly

Senate Insurance 6/16/11

The General Assembly has ended, the current status is the final status.

6/16/11

Blevins

Rep. B. Short

AN ACT TO AMEND CHAPTER 75 OF TITLE 18 OF THE DELAWARE CODE RELATING TO VIATICAL AND LIFE SETTLEMENTS.

In 1999, the General Assembly adopted the ‘Delaware Viatical Settlements Acts’, 72 Del. Laws, c. 132, to regulate viatical settlements (i.e. the payment of less than the death benefit of an insurance policy prior to the death of an insured who has a catastrophic or life threatening illness or condition) in this State. Since that time, the National Conference of Insurance Legislators (‘NCOIL’) has promulgated a comprehensive Life Settlements Model Act which has been adopted by 21 states with minor state-specific amendments. This Act repeals the earlier enacted viatical settlements act and adopts the more comprehensive NCOIL Model Act as Delaware law. Pursuant to this Act, any person engaged in the business of life settlements must be licensed and regulated by the Insurance Commissioner. The Act defines conduct constituting fraudulent life settlement acts, sets forth detailed licensing requirements for providers and brokers of life settlements contracts, provides notice, disclosure, fraud prevention and rescission rights to protect policy owners and insured parties, and provides the Insurance Commissioner with authority to impose penalties, issue cease and desist orders, seek injunctive relief and otherwise remedy violations of the Act. The Act also provides a transition provision to allow individuals and entities licensed pursuant to the former Viatical Settlements Act to continue to engage in business in this State pending licensure pursuant to this Act.

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Takes effect upon being signed into law

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