SB 234 (BR 2086) - C. Borders
AN ACT relating to life insurance.
Amend KRS 304.15-020 on viatical settlements to define terms; amend KRS 304.15-700 to provide for a viatical settlement broker license; require proof of financial responsibility for viatical settlement brokers and providers; direct the commissioner to act on a viatical settlement contract within 60 days; require a viatical settlement provider to notify the Department of Insurance of its intention to use a trust; provide that a viatical settlement broker has a fiduciary duty to the viator; amend KRS 304.15-705 to require a licensee to maintain viatical settlement contracts for 5 years after the death of the viator; require business records to be kept for 5 years; provided that the Secretary of State is the licensee's attorney to receive service of process; amend KRS 304.15-715 to provide that when a viatical settlement contract is executed the viatical settlement provider must allow the viator to choose to be notified of the identity of the new owner or to forgo notice; create new sections of Subtitle 15 of KRS Chapter 304 to authorize the Department of Insurance to issue an emergency cease and desist order; specify certain acts as unlawful; require a viatical settlement transaction to be completed through a independent third-party trustee; provide that a viatical settlement contract is rescinded if the insured dies during the rescission period; authorize the Department of Insurance to seek an injunction; amend KRS 304.15-710 to require the viatical settlement provider to provide the viator a copy of the department's consumer guide to viaticals; require the viatical settlement provider to deposit proceeds due the viator and any commissions due the broker with an independent third-party trustee within 3 days of receipt of the signed contract; create a new section of subtitle 15 of KRS Chapter 304 to subject a provider trust to the provisions of this Act; amend KRS 304.42-190 to conform; create a new section of Subtitle 99 of KRS Chapter 304 to provide for duties of licensee upon revocation or suspension of license; subject violators to civil fines by the commissioner; require the department to refer violations to the Division of Insurance Fraud Investigation.
Feb 9-introduced in Senate
Feb 14-to Banking and Insurance (S)