DE SR19

Request the Delaware Department of Insurance to examine the secondary market for life insurance policies, including issues raised by insurance companies failing to pay death benefits on policies sold in the secondary market.

Require the Department to provide guidance on policies and rules needed to avoid litigation for owners of life insurance policies issued in Delaware and to ensure certainty for secondary market investors.

Direct the Department to consider whether legislation would be appropriate and submit any legislative proposals to the 149th General Assembly by December 31, 2016.

Context: Life settlements allow seniors to sell existing life insurance policies to third parties for more than cash surrender value; Delaware financial institutions hold these policies in trust under Delaware law.