February 2, 2010 - Introduced by Senators Wirch, Vinehout, Risser, Erpenbach,
Grothman and Lehman, cosponsored by Representatives Barca, Toles,
Richards, Soletski, Turner and Fields. Referred to Committee on Small
Business, Emergency Preparedness, Technical Colleges, and Consumer
Protection.
SB513,1,6
1An Act to repeal 632.68;
to renumber and amend 551.102 (32);
to amend
249.857 (1) (d) 20., 71.05 (1) (f), 71.26 (3) (ag), 71.45 (2) (a) 14., 73.0301 (1) (d) 12.,
3321.60 (1) (a) 20., 551.102 (17) (d), 551.102 (17) (e), 551.102 (28) (intro.), 601.31
4(1) (mm), 601.31 (1) (mp), 601.31 (1) (mr) and 601.31 (1) (ms); and
to create
5632.69 of the statutes;
relating to: life settlements, granting rule-making
6authority, and providing a penalty.
Analysis by the Legislative Reference Bureau
Under current law, the owner of a life insurance policy that insures a person
who has a catastrophic or life-threatening illness or condition, including AIDS or
HIV infection, may sell the policy for an amount that is less than the expected death
benefit under the policy in a transaction known as a viatical settlement. The person
that makes the payment under the viatical settlement is known as a viatical
settlement provider (provider) and must be licensed by the commissioner of
insurance (commissioner). A person who, for a fee, offers or attempts to negotiate a
viatical settlement between the owner of a life insurance policy and one or more
providers is known as a viatical settlement broker (broker) and must be licensed by
the commissioner. The commissioner may revoke, suspend, or refuse to renew a
provider's or broker's license if the licensee misrepresented information in the
application; engaged in fraudulent or dishonest practices or is shown to be
untrustworthy or incompetent to act as a provider or broker; has been convicted of
a misdemeanor or felony involving fraud, deceit, or misrepresentation; violated
Wisconsin law regarding viatical settlements; or if licensed as a provider, failed to
meet the minimum settlement payment requirements or demonstrated a pattern of
making unreasonable payments to policy owners. Every provider or broker must
maintain records for all viatical settlements and make those records available to the
commissioner for inspection.
Currently, if a policy owner who is seeking a viatical settlement has a
catastrophic or life-threatening illness or condition and is the insured under the
policy, the provider must obtain from the policy owner's physician a statement that
the owner is of sound mind before entering into a viatical settlement contract with
the policy owner. The provider must also obtain a written statement in which the
policy owner consents to the viatical settlement contract; acknowledges his or her
catastrophic or life-threatening illness or condition; releases his or her medical
records to the provider; represents that he or she understands the viatical settlement
contract, the benefits under the life insurance policy, and the relationship between
the viatical settlement contract and the life insurance policy; acknowledges that he
or she is entering into the viatical settlement contract freely and voluntarily; and
affirms that he or she has received a recommendation from a provider or broker to
seek financial advice regarding the effect of the viatical settlement on creditor
claims, income taxes, and government benefits. Before the execution of the viatical
settlement contract, the provider or broker must make disclosures, including that
there may be alternatives to viatical settlements; that the policy owner should obtain
financial advice; that some or all of the viatical settlement proceeds may be taxable
or subject to the claims of creditors; that a viatical settlement may adversely affect
the recipient's eligibility for government benefits; that the policy owner may rescind
the viatical settlement contract; the frequency of and procedure for contacts by the
provider or broker to determine the health status of the policy owner; the
requirements imposed on the bank and escrow agent for the payment of viatical
settlement proceeds; and that no beneficiary named by the policy owner will receive
any insurance proceeds under the policy except under certain circumstances.
Current law requires every viatical settlement to be reasonable and sets
minimum payment requirements based on the insured's life expectancy. The policy
owner may rescind the contract within 30 days after entering into the contract or 15
days after receiving the viatical settlement proceeds, whichever is sooner. Under
current law, a provider or broker may not discriminate in making a viatical
settlement contract, unless the factor on which the provider or broker is
discriminating affects the insured's life expectancy. A provider or broker may not pay
or offer to pay a finder's fee to a person providing medical, legal, or financial planning
services to a policy owner whose policy may become the subject of a viatical
settlement. Current law limits the number of times the provider or broker may
contact the insured based on the insured's life expectancy. A provider or broker may
not solicit or accept as investors in a policy that is the subject of a viatical settlement
contract persons who are in a position to influence the treatment of the insured's
catastrophic or life-threatening illness or condition.
Current law requires advertising related to viatical settlements to be truthful
and not misleading by fact or implication, in addition to other requirements.
This bill changes the terminology for the sale of a life insurance policy for an
amount less than the death benefit but greater than the cash surrender value or
accelerated death benefit under the policy to "life settlement." The bill allows any
individual in addition to one with catastrophic or life threatening illnesses or
conditions to obtain a life settlement. Under the bill, a policy may be the subject of
a life settlement within a five-year period commencing with the date of issuance of
the policy only under certain conditions; one of these conditions is the terminal or
chronic illness of the insured. The bill modifies the definitions of provider, broker,
owner, and other terms related to life settlements. The bill also regulates certain
aspects of the purchase of a policy that is the subject of a life settlement from a
provider. In addition, the bill makes various changes related to life settlement laws,
including the following:
1. The bill directs the commissioner to investigate each applicant for a
provider's or broker's license and issue a license to an applicant if the applicant meets
certain qualifications, including completion of an initial training course. The bill
specifies the requirements for training of license applicants and of brokers and
providers, including certain topics the training must cover. The bill adds the
following to the bases for which the commissioner may suspend, revoke, or refuse to
renew a license: that the licensee no longer meets the requirements for licensure;
that the licensee, if a provider, has entered into any life settlement contract using a
form that was not approved by the commissioner; that the licensee, if a provider, has
failed to honor obligations in a life settlement contract; that the licensee, if a provider,
has assigned or transferred a settled policy to a person other than a person specified
in the bill; and that any officer, partner, member, or key management personnel has
violated any of the requirements for life settlements in the bill. The commissioner
may examine the business and affairs of licensed providers and brokers and
applicants for licenses.
2. Under the bill, the insurer that issued the life insurance policy that was the
subject of a life settlement is not responsible for an act or omission of a broker or
provider unless the insurer received compensation for the placement of the life
settlement contract from the broker or provider or from a purchaser of the life
settlement contract.
3. The bill prohibits any person from using a life settlement contract form that
has not been approved by the commissioner. In addition, no insurer may require any
owner, insured, provider, or broker to sign a form that has not been approved by the
commission for use in connection with life settlement contracts.
4. Under the bill, every licensed provider and broker must annually file with
the commissioner a statement containing certain information, including any
information that the commissioner prescribes by rule about a policy settled within
five years of policy issuance. Licensees must keep certain records regarding life
settlements and make those records available to the commissioner for inspection.
5. The bill adds disclosures to those that a provider or broker must make to the
owner of the policy that is the subject of a life settlement, including that the broker
represents the owner exclusively and owes a fiduciary duty to the owner; that the
funds from the life settlement will be sent to the owner within three business days
after the provider has received acknowledgment that ownership of the policy has
been transferred; that entering into a life settlement contract may cause forfeiture
of other rights and benefits under the policy; and that medical, financial, or personal
information may be disclosed to others to effect the life settlement. The provider
must make certain disclosures to the owner, including the affiliation between the
provider and the issuer of the policy to be settled; any affiliation or contractual
arrangement between the provider and the purchaser; that, if the policy to be subject
to a life settlement is a joint policy or involves family riders, the life settlement may
result in the loss of coverage to the other family members; the dollar amount of the
current death benefit; and that the funds from the life settlement will be escrowed
with a third party. The broker must disclose to the owner the name, business
address, and telephone number of the broker; a complete and accurate description
of all offers, counteroffers, acceptances, and rejections related to the life settlement;
the amount of the broker's compensation; the amount of the life settlement offer; and
the percentage of the life settlement, if any, comprised by the broker's compensation.
If the provider transfers ownership or changes the beneficiary of the policy the
provider must communicate that in writing to the insured within 20 days. The
provider must disclose certain information to the purchaser of a policy that is the
subject of a life settlement. A broker or provider must disclose to the insurer a plan
or transaction to originate, renew, continue, or finance a policy for the purpose of
engaging in the business of life settlements at any time before, or during the first five
years after, issuance of the policy.
6. The bill eliminates the minimum payment requirement for life settlements.
7. The bill requires that, before entering into a life settlement contract, the
provider must obtain from the owner's physician, if the owner is the insured under
the policy to be settled, a statement that the owner is under no constraint or undue
influence to enter into a life settlement contract. Within 20 days of an owner's
agreement to settle a policy, the provider must give written notice to the insurer that
issued the policy that the policy will be the subject of a life settlement. The provider
must also deliver to the insurer that issued the policy a copy of the insured's medical
release, the owner's application for the life settlement, and a request for verification
of coverage. The insurer must respond to a request for verification of coverage within
30 days after receiving the request and must indicate whether the insurer intends
to investigate the validity of the contract or fraud related to the contract.
8. The bill retains the owner's ability to rescind a life settlement contract within
the same time as under current law and provides that, if the insured dies during the
period in which the owner may rescind a contract, the contract is automatically
rescinded subject to repayment by the owner or owner's estate of all proceeds and
payments made by the provider or a purchaser.
9. Under the bill, the owner, at the direction of the provider, must send the
documents required to change the ownership of the policy directly to the escrow
agent. Within three business days of the escrow agent receiving the documents, the
provider must pay the proceeds of the life settlement to the escrow agent. If the
escrow agent does not pay the proceeds to the owner within three days after receiving
acknowledgement that the ownership of the policy was transferred, the owner may
void the life settlement contract until the proceeds are tendered to and accepted by
the owner.
10. Within 30 days of receiving a request for a change of ownership or
beneficiary of a policy, the insurer that issued a policy that is the subject of a life
settlement must either acknowledge that the requested change has been made or
specify the reasons why the requested change cannot be made.
11. Under the bill, a broker represents only the owner of the policy that will be
the subject of a life settlement and owes a fiduciary duty to the owner.
12. The bill prohibits fraudulent life settlement acts, including acts or
omissions that are committed by any person for the purpose of pecuniary gain; any
acts that a person does in the furtherance of a fraud or to prevent the detection of a
fraud; embezzlement, theft, misappropriation, or conversion from a life settlement
provider, insurer, insured, owner, or any person engaged in the business of life
settlements or insurance; recklessly dealing in a life settlement the subject of which
is a policy that was obtained with intent to defraud; attempting, assisting, or
conspiring to commit a fraudulent life settlement act; and stranger-originated life
insurance. Stranger-originated life insurance is the initiation of a life insurance
policy for the benefit of a third-party investor who has no insurable interest in the
insured. The bill prohibits various other activities in connection with life
settlements, including engaging in a transaction if the person knows that the intent
is to avoid notice requirements; issuing or promoting the purchase of a life insurance
policy for the purpose of settling the policy under a life settlement; and making a
representation to the policy owner in connection with the sale or financing of a policy
that the insurance is free unless that is provided in the policy. The bill requires a
statement in all life settlement contracts, purchase agreements, and applications for
a life settlement that any person who knowingly presents false information in an
application for insurance, a life settlement, or a purchase agreement may be subject
to civil and criminal penalties. The bill requires a person who engages in the
business of life settlements and has knowledge or a reasonable belief that certain
violations related to life settlements have been or will be committed to report that
to the commissioner. Providers and brokers must have in place antifraud initiatives
described in the bill.
13. Relating to advertisement of life settlements, the bill requires providers
and brokers to maintain a system of control over the advertising of life settlements;
requires that disclosures not be minimized or obscured; prohibits the omission of
information or using misleading information about a benefit, covered loss, premium
payable, or tax consequences; prohibits the use of the name or title of a life insurance
company or policy unless the insurer has approved the advertisement; prohibits use
of testimonials, appraisals, or analyses unless they are genuine; prohibits the
implication that a life settlement contract or purchase agreement has been endorsed
by an organization unless that is the fact; prohibits inaccurate statistical
information; prohibits the disparagement of insurers, providers, brokers, producers,
policies, services, or methods of marketing; requires the name of the provider or
broker to be in all advertisements; prohibits the use of materials that mislead policy
owners or prospective purchasers into believing that the advertisement is connected
with a government program or agency; prohibits exaggeration of the fact that the
provider or broker holds a license so as to suggest that competing licensees are not
licensed; prohibits emphasizing the dollar amounts available to an owner except as
an average purchase price as a percent of the face value obtained by other policy
owners in life settlements with the licensee during the previous six months; and
imposes other requirements. The commissioner may require a provider or broker to
submit advertising materials.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB513, s. 1
1Section
1. 49.857 (1) (d) 20. of the statutes is amended to read:
SB513,6,32
49.857
(1) (d) 20. A license issued under s. 628.04,
632.68 (2) or (4) 632.69 (2), 3or 633.14 or a temporary license issued under s. 628.09.
SB513, s. 2
4Section
2. 71.05 (1) (f) of the statutes is amended to read:
SB513,6,115
71.05
(1) (f)
Income from the sales of certain insurance policies. Income received
6by the original policyholder or original certificate holder
who has a catastrophic or
7life-threatening illness or condition from the sale of a life insurance policy or
8certificate, or the sale of the death benefit under a life insurance policy or certificate,
9under a
viatical life settlement contract, as defined in s.
632.68 (1) (d) 632.69 (1) (k).
10In this paragraph, "catastrophic or life-threatening illness or condition" includes
11AIDS, as defined in s. 49.686 (1) (a), and HIV infection, as defined in s. 49.686 (1) (d).
SB513, s. 3
12Section
3. 71.26 (3) (ag) of the statutes is amended to read:
SB513,7,413
71.26
(3) (ag) Section 61 (relating to the definition of gross income) is modified
14to exclude income received by the original policyholder or original certificate holder
15who has a catastrophic or life-threatening illness or condition from the sale of a life
16insurance policy or certificate, or the sale of the death benefit under a life insurance
1policy or certificate, under a
viatical life settlement contract, as defined in s.
632.68
2(1) (d) 632.69 (1) (k). In this paragraph, "catastrophic or life-threatening illness or
3condition" includes AIDS, as defined in s. 49.686 (1) (a), and HIV infection, as defined
4in s. 49.686 (1) (d).
SB513, s. 4
5Section
4. 71.45 (2) (a) 14. of the statutes is amended to read:
SB513,7,136
71.45
(2) (a) 14. By subtracting from federal taxable income the amount that
7is included in that income from the sale by the original policyholder or original
8certificate holder
who has a catastrophic or life-threatening illness or condition of
9a life insurance policy or certificate, or the sale of the death benefit under a life
10insurance policy or certificate, under a
viatical
life settlement contract, as defined
11in s.
632.68 (1) (d) 632.69 (1) (k). In this subdivision, "catastrophic or
12life-threatening illness or condition" includes AIDS, as defined in s. 49.686 (1) (a),
13and HIV infection, as defined in s. 49.686 (1) (d).
SB513, s. 5
14Section
5. 73.0301 (1) (d) 12. of the statutes is amended to read:
SB513,7,1615
73.0301
(1) (d) 12. A license issued under s. 628.04,
632.68 (2) or (4) 632.69 (2), 16or 633.14 or a temporary license issued under s. 628.09.
SB513, s. 6
17Section
6. 321.60 (1) (a) 20. of the statutes is amended to read:
SB513,7,1918
321.60
(1) (a) 20. A license issued under s. 628.04,
632.68 (2) or (4) 632.69 (2),
19or 633.14 or a temporary license issued under s. 628.09.
SB513, s. 7
20Section
7. 551.102 (17) (d) of the statutes is amended to read:
SB513,7,2321
551.102
(17) (d) With respect to a fractional or pool interest in a
viatical life 22settlement investment, "issuer" means every person who creates the fractional or
23pool interest for the purpose of offering or selling the interest.
SB513, s. 8
24Section
8. 551.102 (17) (e) of the statutes is amended to read:
SB513,8,8
1551.102
(17) (e) With respect to a
viatical life settlement investment that is not
2a fractional or pool interest, "issuer" means the
viatical settlement provider, as
3defined in s.
632.68 (1) (e) 632.69 (1) (p), or the person who purchases or otherwise
4acquires the
viatical life settlement from a
viatical settlement provider and then
5offers or sells
viatical life settlement investments
therein except that, under this
6paragraph, "issuer" does not include a broker-dealer or agent registered under this
7chapter and does not include the
viator owner of the insurance policy, certificate of
8insurance, or death benefit underlying the
viatical
life settlement investment.
SB513, s. 9
9Section
9. 551.102 (28) (intro.) of the statutes is amended to read:
SB513,8,2210
551.102
(28) (intro.) "Security" means a note; stock; treasury stock; security
11future; bond; debenture; evidence of indebtedness; limited partnership interest;
12viatical life settlement investment or similar agreement; certificate of interest or
13participation in a profit-sharing agreement; collateral trust certificate;
14preorganization certificate or subscription; transferable share; investment contract;
15voting trust certificate; certificate of deposit for a security; fractional undivided
16interest in oil, gas, or other mineral rights; put, call, straddle, option, or privilege on
17a security, certificate of deposit, or group or index of securities, including an interest
18therein or based on the value thereof; put, call, straddle, option, or privilege entered
19into on a national securities exchange relating to foreign currency; or, in general, an
20interest or instrument commonly known as a "security"; or a certificate of interest
21or participation in, temporary or interim certificate for, receipt for, guarantee of, or
22warrant or right to subscribe to or purchase, any of the foregoing. The term:
SB513, s. 10
23Section
10. 551.102 (32) of the statutes is renumbered 551.102 (17m), and
24551.102 (17m) (intro.) and (a), as renumbered, are amended to read:
SB513,9,5
1551.102
(17m) (intro.) "
Viatical Life settlement investment" means the entire
2interest or any fractional or pool interest in a life insurance policy or certificate of
3insurance or in the death benefit thereunder that is the subject of a
viatical life 4settlement, as defined in s.
632.68 (1) (b) 632.69 (1) (j), but does not include any of
5the following:
SB513,9,86
(a) The assignment, transfer, sale, devise or bequest of a death benefit, life
7insurance policy, or certificate of insurance by the
viator owner to a
viatical
8settlement provider pursuant to s.
632.68 632.69.
SB513, s. 11
9Section
11. 601.31 (1) (mm) of the statutes is amended to read:
SB513,9,1110
601.31
(1) (mm) For initial issuance of a license as a
viatical settlement 11provider under s.
632.68 (2) 632.69 (2) (b), $750.
SB513, s. 12
12Section
12. 601.31 (1) (mp) of the statutes is amended to read:
SB513,9,1413
601.31
(1) (mp) For each annual renewal of a license as a
viatical settlement 14provider under s.
632.68 (2) 632.69 (2) (j), $250.
SB513, s. 13
15Section
13. 601.31 (1) (mr) of the statutes is amended to read:
SB513,9,1716
601.31
(1) (mr) For initial issuance of a license as a
viatical settlement broker
17under s.
632.68 (4) 632.69 (2) (b), $750.
SB513, s. 14
18Section
14. 601.31 (1) (ms) of the statutes is amended to read:
SB513,9,2019
601.31
(1) (ms) For each annual renewal of a license as a
viatical settlement 20broker under s.
632.68 (4) 632.69 (2) (j), $250.
SB513, s. 15
21Section
15. 632.68 of the statutes is repealed.
SB513, s. 16
22Section
16. 632.69 of the statutes is created to read:
SB513,9,23
23632.69 Life settlements. (1) Definitions. In this section:
SB513,9,2524
(a) "Advertisement" means any written, electronic, or printed communication
25or any communication made by means of recorded telephone messages or
1transmitted on radio, television, the Internet, or similar communications media,
2including film strips, motion pictures, and videos, published, disseminated,
3circulated, or placed, directly or indirectly, before the public in this state for the
4purpose of creating an interest in or inducing a person to purchase or sell, assign,
5devise, bequeath, or transfer the death benefit or ownership of a policy or an interest
6in a policy pursuant to a life settlement contract.
SB513,10,127
(b) "Broker" means a person who, on behalf of an owner and for a fee,
8commission, or other valuable consideration, offers or attempts to negotiate life
9settlement contracts between an owner and one or more providers, or one or more
10brokers. "Broker" does not include an attorney or certified public accountant who is
11retained to represent the owner and whose compensation is not paid directly or
12indirectly by the provider or purchaser.
SB513,10,1713
(c) "Business of life settlements" means an activity involved in the offering
14soliciting, negotiating, procuring, effectuating, purchasing, investing in, financing,
15monitoring, tracking, underwriting, selling, transferring, assigning, pledging,
16hypothicating, or in any other manner, acquiring an interest in a policy by means of
17a life settlement contract.
SB513,10,1818
(d) "Chronically ill" means any of the following:
SB513,10,2019
1. Being unable to perform at least 2 activities of daily living, including eating,
20toileting, transferring, bathing, dressing, or continence.
SB513,10,2221
2. Requiring substantial supervision to monitor the health and safety of the
22individual due to his or her severe cognitive impairment.
SB513,10,2423
3. Having a level of disability similar to that described in subd. 1., as defined
24by the U.S. department of health and human services.
SB513,11,9
1(e) "Financing entity" means a person whose principal activity related to a life
2settlement is providing funds to effect the life settlement contract or purchase of one
3or more policies and who has an agreement in writing with one or more providers to
4finance the acquisition of life settlement contracts, including an underwriter,
5placement agent, lender, purchaser of securities, purchaser of a policy from a life
6settlement provider, credit enhancer, or any entity that has a direct ownership in a
7policy that is the subject of a life settlement contract. "Financing entity" does not
8include an investor that is not an accredited investor, as defined in
17 CFR 230.501 9(a), or a purchaser.
SB513,11,1310
(f) "Financing transaction" means a transaction in which a licensed provider
11obtains financing from a financing entity including any secured or unsecured
12financing, any securitization transaction, or any securities offering which is either
13registered or exempt from registration under federal and state securities law.
SB513,11,1414
(g) "Fraudulent life settlement act" includes all of the following:
SB513,11,1715
1. Acts or omissions that are committed by any person, or that a person permits
16its employees or its agents to engage in, for the purpose of pecuniary gain, including
17any of the following:
SB513,12,418
a. Presenting, causing to be presented, or preparing with the knowledge or
19belief that it will be presented to or by a provider, broker, purchaser, financing entity,
20insurer, insurance producer, or any other person, false material information, or
21concealing material information, as part of, in support of, or concerning a fact
22material to an application for the issuance of a life settlement contract or a policy;
23the underwriting of a life settlement contract or a policy; a claim for payment or
24benefit under a life settlement contract or a policy; premiums paid on an insurance
25policy; payments and changes in ownership or beneficiary made in accordance with
1the terms of a life settlement contract or a policy; the reinstatement or conversion of
2a policy; the solicitation, offer, effectuation, or sale of a life settlement contract or a
3policy; the issuance of written evidence of a life settlement contract or a policy; or a
4financing transaction.
SB513,12,65
b. Employing any plan, device, scheme, or artifice to defraud in the business
6of life settlements.
SB513,12,107
c. Failing to disclose to an insurer, if the request for such disclosure has been
8made by the insurer, that the prospective owner has undergone a life expectancy
9evaluation by any person or entity other than the insurer or its authorized
10representatives in connection with the issuance of the policy.
SB513,12,1211
2. Any of the following acts that any person does, or permits its employees or
12agents to do, in the furtherance of a fraud or to prevent the detection of a fraud:
SB513,12,1513
a. Removing, concealing, altering, destroying, or sequestering from the
14commissioner the assets or records of a licensee or other person engaged in the
15business of life settlements.
SB513,12,1716
b. Misrepresenting or concealing the financial condition of a licensee, financing
17entity, insurer, or other person.
SB513,12,2018
c. Transacting the business of life settlements in violation of laws requiring a
19license, certificate of authority, or other legal authority for the transaction of the
20business of life settlements.
SB513,12,2321
d. Filing with the commissioner or the chief insurance regulatory official of
22another jurisdiction a document containing false information or otherwise
23concealing information about a material fact from the commissioner or official.
SB513,13,3
13. Embezzlement, theft, misappropriation, or conversion of monies, funds,
2premiums, credits, or other property of a life settlement provider, insurer, insured,
3owner, or any other person engaged in the business of life settlements or insurance.
SB513,13,94
4. Recklessly entering into, negotiating, brokering, or otherwise dealing in a
5life settlement contract, the subject of which is a life insurance policy that was
6obtained by presenting false information concerning any fact material to the policy
7or by concealing for the purpose of misleading another information concerning any
8fact material to the policy, where the person or persons intended to defraud the
9policy's issuer, the provider, or the owner.
SB513,13,1110
5. Attempting to commit; assisting, aiding, or abetting in the commission of;
11or conspiring to commit the acts or omissions specified in this paragraph.
SB513,13,1412
6. Misrepresenting the state of residence of an owner to be a state that does not
13have a law substantially similar to this section for the purpose of evading or avoiding
14the provisions of this section.
SB513,13,1616
(h) "Licensee" means a provider or broker that holds a license under sub. (2).
SB513,13,1917
(i) "Life expectancy" means the arithmetic mean, considering medical records
18and appropriate experiential data, of the number of months an insured under the
19policy to be settled can be expected to live.
SB513,14,220
(j) 1. "Life settlement" means an agreement regarding the terms under which
21compensation or any thing of value will be paid, which compensation or thing of value
22is less than the expected death benefit of the policy but greater than the cash
23surrender value or accelerated death benefit available under the policy at the time
24of the application for the life settlement, in return for the owner's present or future
1assignment, transfer, sale, devise, or bequest of the death benefit or any interest in
2a policy. "Life settlement" includes all of the following: