Relating to the regulation of secondary market transactions related to the business of life settlements; providing penalties; authorizing fees.
Impact
The newly regulated framework established by SB1061 aims to bolster consumer protection while enabling transparency in transactions involving life settlements. This includes the stipulation that secondary providers may only engage in transactions with accredited investors, thus restricting access to less experienced investors. Additionally, the bill widens the scope for enforcement against fraudulent practices, laying out penalties for parties who knowingly engage in misleading or deceptive acts within the life settlement contracts and transactions. Through such measures, the bill seeks to enhance the integrity of the life settlement market in Texas and protect vulnerable policyholders.
Summary
SB1061 introduces regulations pertaining to secondary market transactions related to life settlements in Texas. The bill seeks to amend existing insurance laws to better protect consumers and prevent fraudulent activities within the life settlements market. One of the core elements includes enhancing definitions around key terms such as 'broker', 'provider', 'secondary provider', and 'investor', thereby clarifying the roles of various parties involved in life settlements. The bill also aims to ensure that individuals accessing life settlements are adequately informed about the implications and alternatives of entering such contracts.
Conclusion
Overall, SB1061 represents a significant shift in the regulatory landscape for life settlements in Texas. By instituting a clearer regulatory framework, the bill is poised to create a more secure environment for consumers looking to navigate the complexities of life settlements, potential financial benefits aside from traditional life insurance, and prevention of fraud in this sensitive market.
Contention
While proponents of SB1061 argue that the bill will establish stricter controls and support ethical practices in the industry, there are concerns raised by certain stakeholders about the potential for increased costs and decreased accessibility to life settlements for consumers who may need them. Critics claim that the additional regulatory burden on secondary providers may lead to higher fees that could ultimately impact policyholders. Furthermore, the restrictions placed on who can engage in these transactions may limit options for those in need of alternative financial strategies in challenging times.
Identical
Relating to the regulation of secondary market transactions related to the business of life settlements; providing penalties; authorizing fees.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Relating to the regulation of sports wagering; requiring occupational permits; authorizing fees; imposing a tax; decriminalizing wagering on certain sports events; creating criminal offenses; providing administrative penalties.
Relating to the regulation of sports wagering; requiring occupational permits; authorizing fees; imposing a tax; decriminalizing wagering on certain sports events; creating criminal offenses; providing administrative penalties.
Relating to the regulation and voluntary licensing of reroofing contractors by the Texas Department of Licensing and Regulation; providing administrative and civil penalties; authorizing fees.
Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.
This bill establishes which state law governs health insurers offering coverage in multiple states. Specifically, the bill provides that the laws of a state designated by a health insurer (primary state) apply to individual health insurance coverage offered by that insurer in any other state (secondary state) if the coverage, states, and insurer comply with the conditions of this bill. Insurers are exempted from any secondary state's laws that would prohibit or regulate the operation of the insurer in that state. The primary state is given sole jurisdiction to enforce its covered laws in any secondary state. The Government Accountability Office must study the effect of this bill on specified health insurance issues.
Relating to the establishment of the Texas Committee on Foreign Investment to review certain transactions involving certain foreign entities in coordination with the attorney general; creating a civil penalty.
Relating to the establishment of the Texas Committee on Foreign Investment to review certain transactions involving certain foreign entities; creating a civil penalty.