SB445 Summary: Life Settlements Act

• Establishes licensure requirements for providers and brokers of life settlement contracts, with the Commissioner of Insurance overseeing regulation, enforcement, and fee structures.

• Requires life settlement contracts and forms to be filed with and approved by the commissioner; prohibits use of unapproved forms and mandates annual reporting by providers on settled policies.

• Mandates comprehensive written disclosures to policy owners including rescission rights (30 days), tax implications, creditor claims, government benefits impacts, and required fraud warnings on all applications and contracts.

• Prohibits transactions within 2 years of policy issuance with limited exceptions (terminal/chronic illness, ownership changes, retirement, bankruptcy); requires verification of coverage from insurers within 30 days and escrow accounts for settlement proceeds.

• Establishes criminal penalties (Class A misdemeanor for fraudulent acts) and civil penalties (up to $10,000 per violation), with license revocation for fraudulent conduct and allow injured parties to pursue civil damages.