HB 673 -- Life Insurance

Sponsor:  Liese

This bill requires a license to sell or broker "life
settlements," which are defined as the assignment or transfer of
an interest in the expected death benefits from a life insurance
policy.  The bill establishes criteria necessary for obtaining a
license and sets forth the responsibilities of the Department of
Insurance in regulating the industry.  The bill requires that
life settlement sales contracts contain certain information,
such as the availability of accelerated benefits from the issuer
of the insurance policy, possible tax consequences, and the
owner's right to rescind the contract.  The bill also requires a
variety of written disclosures to be made to every prospective
purchaser and prohibits specific language, such as the term
"guaranteed," in sales literature.  Any violation constitutes an
unfair trade practice, for which the Director of the Department
of Insurance may seek injunctions and sue for damages.

Missouri House of Representatives
Last Updated September 13, 2001 at 2:03 pm