|
contracts and to submit recommended legislation to specifically |
| permit life settlement contracts and to make any other necessary |
| changes to the laws regulating viatical settlement contracts. |
| Maine law currently permits the use of viatical settlements but |
| does not permit life settlements. While both settlements involve |
| the sale of a life insurance policy or certificate for |
| consideration, viatical settlements may be entered into only when |
| the insured is either chronically or terminally ill, whereas, under |
| a life settlement contract, these criteria need not be present. |
| This bill amends Maine's current law on viatical settlement |
| contracts to expressly permit life settlement contracts in |
| accordance with requirements similar to those applicable to |
| viatical settlements. The proposed amendments are consistent with |
| the most recently adopted National Association of Insurance |
| Commissioners Viatical Settlements Model Act. |
