House Study Bill 740


                                          HOUSE FILE       
                                          BY  (PROPOSED COMMITTEE ON
                                               COMMERCE, REGULATION AND
                                               LABOR BILL BY CHAIRPERSON
                                               JENKINS)


       Passed House,  Date               Passed Senate, Date             
       Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                    Approved                            

                                         A BILL FOR

     1 An Act relating to licensing requirements to offer viatical
     2    settlement contracts.
     3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
     4 TLSB 6503YC 81
     5 kk/je/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  508E.5  LICENSING == EXCEPTIONS.
  1  2    1.  Notwithstanding any other provision of law to the
  1  3 contrary, a person shall be deemed to meet the licensing
  1  4 requirements adopted by rule pursuant to section 508E.4 and
  1  5 shall be permitted to operate as a viatical settlement broker
  1  6 if the person meets all of the following requirements:
  1  7    a.  The person is licensed as a resident or nonresident
  1  8 insurance producer with a life insurance line of authority
  1  9 under chapter 522B, has been licensed for at least one year,
  1 10 and provides proof of such licensure to the commissioner.
  1 11    b.  The person notifies the commissioner that the person is
  1 12 operating as a viatical settlement broker not later than
  1 13 thirty days after operating as a viatical settlement broker in
  1 14 this state.
  1 15    c.  The person provides the commissioner a signed
  1 16 acknowledgment that the person will operate as a viatical
  1 17 settlement broker in accordance with this chapter and any
  1 18 rules adopted under this chapter.
  1 19    d.  The person pays to the commissioner a notification fee
  1 20 of fifty dollars.
  1 21    2.  For the purposes of this section, a person shall be
  1 22 deemed to meet the requirement of subsection 1, paragraph "a",
  1 23 if the person is licensed as a resident life insurance
  1 24 producer in another state, has been licensed for at least one
  1 25 year, and provides proof of such licensure to the
  1 26 commissioner.
  1 27                           EXPLANATION
  1 28    This bill relates to licensing requirements to offer
  1 29 viatical settlement contracts.
  1 30    Under current law, the commissioner of insurance is
  1 31 required to adopt rules to provide for licensing requirements
  1 32 for persons offering viatical settlement contracts.  The bill
  1 33 provides that a person shall be deemed to meet those licensing
  1 34 requirements and be permitted to operate as a viatical
  1 35 settlement broker if the person meets certain requirements.
  2  1 The requirements the person must meet under the bill include
  2  2 that the person be licensed as a resident or nonresident
  2  3 insurance producer with a life insurance line of authority
  2  4 under Code chapter 522B for at least one year or licensed as a
  2  5 resident life insurance producer in another state for at least
  2  6 one year.  The person must also notify the commissioner within
  2  7 30 days that the person is operating as a viatical settlement
  2  8 broker and pay a notification fee of $50.  The person must
  2  9 also provide the commissioner a signed acknowledgment that the
  2 10 person will operate as a viatical settlement broker according
  2 11 to the requirements of Code chapter 508E and rule adopted by
  2 12 the commissioner.
  2 13 LSB 6503YC 81
  2 14 kk:nh/je/5