DE SB66

Expands viatical settlement eligibility by removing physical condition restrictions that previously limited settlements to individuals with catastrophic, life-threatening, or chronic illnesses.

Implements a 5-year settlement prohibition on policies with characteristics of stranger-originated life insurance (non-recourse financing, settlement guarantees), with exceptions for documented hardship events like death of spouse, divorce, disability, bankruptcy, or terminal/chronic illness.

Grants consumers the right to rescind settlement contracts within 60 days and requires comprehensive disclosures to viators about alternatives, tax implications, government benefits impacts, and broker fiduciary duties.

Establishes licensing and regulatory requirements for viatical settlement providers and brokers, including $250,000 bonding, anti-fraud plans, and prohibition on false advertising claiming insurance is "free" or "no cost."

Creates enforcement mechanisms including civil penalties up to $50,000 per violation, criminal penalties for fraudulent acts (Class A misdemeanor to Class B felony depending on loss amount), cease and desist authority, and private civil remedies for injured parties.