CHAPTER 320

H.P. 1035 - L.D. 1413

An Act To Clarify Maine Law Relating to Viatical

Settlements

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 24-A MRSA §6809, sub-§4, as enacted by PL 1997, c. 430, §1 and affected by §2, is amended to read:

4. Transfer of insurance policy. Immediately upon receipt from the viator of documents to effect the transfer of the insurance policy, the viatical settlement provider shall pay the proceeds of the settlement to an escrow or trust account managed by an independent trustee or escrow agent in a state-chartered or federally chartered financial institution that is a member of the federal reserve system, whose deposits are insured by the Federal Deposit Insurance Corporation or its successor, pending acknowledgment of the transfer by the issuer of the policy. The trustee or escrow agent shall transfer the proceeds due to the viator or otherwise according to the viator's written instructions immediately upon receipt of acknowledgment of the transfer from the insurer.

Sec. 2. Review of life settlement contracts. The Superintendent of Insurance shall conduct the following review and submit legislation as follows.

1. The superintendent shall convene a working group that includes representatives of the Bureau of Insurance within the Department of Professional and Financial Regulation, insurance companies, persons or companies or their trade or professional organizations licensed in this or other jurisdictions to do the business of life settlements, insurance producers and the Office