Relating to certain life insurer conduct regarding life settlement and viatical settlement contracts.
The bill proposes to enhance consumer protection for vulnerable populations, particularly the elderly and those facing serious health issues. By ensuring that policy owners receive timely and relevant information about life and viatical settlements, the bill is expected to increase the awareness of such options, potentially allowing individuals to secure better financial outcomes. The implementation of these provisions is seen as a significant step towards creating a more transparent and supportive insurance environment.
House Bill 2663 aims to amend the Insurance Code to establish requirements for life insurers regarding life settlement and viatical settlement contracts. Specifically, it mandates that insurers provide specific notices to policy owners or certificate holders who are either chronically or terminally ill or at least 60 years old when they take certain actions regarding their policies. This includes cases where a policy is surrendered, benefits are requested, or when there is an assignment of the policy involved. The purpose is to ensure that policyholders are made aware of their options in these critical situations.
Several points of contention may arise around HB2663 as it limits the actions of life insurers and introduces requirements that could alter existing practices in the industry. Criticism may stem from insurers who believe that such regulations could unnecessarily complicate their operations or reduce their ability to manage risks effectively. Additionally, the bill's provisions aiming to prevent discrimination against individuals engaging in settlement contracts may face scrutiny regarding enforcement and operational feasibility in dealing with diverse policyholder situations.