FL S1600

Defines "fraudulent viatical settlement act" to include presenting false information, using deceptive life expectancies, engaging in stranger-originated life insurance practices, and other fraudulent schemes related to viatical settlements and life insurance policies.

Defines "stranger-originated life insurance practice" as initiating a life insurance policy for a third-party investor who has no insurable interest in the insured at the time of policy origination.

Declares viatical settlement contracts void and unenforceable if entered into within 2 years of policy issuance, or if the policy is subject to a loan secured by an interest in the policy within 5 years of issuance, unless the viator provides a sworn affidavit with supporting documentation meeting specified conditions.

Makes contracts, agreements, and arrangements related to stranger-originated life insurance practices void and unenforceable, and allows life insurers to contest policies obtained through such practices without regard to standard contestability periods.

Requires life insurers to provide individual policyholders with a statement advising them to consult a licensed advisor before making changes to their policies and directing them to contact the Office of Insurance Regulation for more information.