DE SB145

Repeals Delaware's 1999 Viatical Settlements Act and replaces it with a comprehensive Life Settlements Act based on the National Conference of Insurance Legislators (NCOIL) Model Act, which has been adopted by 21 states.

Requires all persons engaged in life settlements business to obtain licenses from the Insurance Commissioner, including Providers (who purchase policies) and Brokers (who negotiate contracts on behalf of policy owners).

Establishes detailed consumer protections including mandatory disclosures, a 15-day rescission period, prohibition on marketing policies specifically for settlement purposes, and restrictions on contacts with insureds regarding health status.

Defines and prohibits fraudulent life settlement acts, requires anti-fraud plans and reporting of suspected fraud to the Commissioner, and provides immunity for good-faith fraud reporting.

Restricts life settlement contracts for policies issued less than 2 years prior unless the owner meets specific conditions such as terminal/chronic illness, job loss, divorce, or other qualifying life events, with limited exceptions for policy conversions.