SB 400 Summary

• Requires the insurance commissioner to develop a free informational brochure in layman's terms about life insurance policy owner rights, including definitions of common industry terms and descriptions of viatical settlement products.

• Mandates life insurance companies notify policy owners or certificate holders (for individuals age 60+, terminally ill, or chronically ill) that viatical settlement contracts are available as an alternative when requesting policy surrender, accelerated death benefits, or upon notice of policy lapse.

• Requires life insurance companies to advise policy owners and certificate holders to consult with a licensed insurance producer or financial adviser before making changes to their life insurance policies.

• Prohibits insurers from discriminating in rates based on whether an individual has entered into a viatical settlement contract or is insured under a viaticated policy with the same class, policy amount, and life expectancy.

• Prohibits insurers from making false or misleading statements about viatical settlements or premium financing, and from restricting the transfer, beneficiary changes, or assignment of life insurance policies.

• Effective July 1, 2011.