AB758,24,1412 (c) The satisfaction of the training requirements of another state that are
13substantially similar to the requirements set forth in this subsection, and are
14approved by the commissioner, satisfy the requirements of this subsection.
AB758,24,1615 (d) Training provided under this subsection shall include all of the following
16topics, at a minimum:
AB758,24,1717 1. Legal structuring of life settlements.
AB758,24,1818 2. Legal relationships among the parties to a life settlement.
AB758,24,1919 3. Required disclosures and privacy requirements.
AB758,24,2020 4. Ethical considerations in selling, soliciting, and negotiating life settlements.
AB758,24,2121 5. Contract requirements.
AB758,24,2222 6. Advertising.
AB758,24,2323 7. Remedies.
AB758,24,2424 8. Licensing requirements.
AB758,24,2525 9. Additional matters as determined by the commissioner.
AB758,25,7
1(e) An individual applicant for a license under sub. (2) shall complete an initial
2training course of not less than 8 hours. An electronic confirmation of completion of
3initial training shall accompany the application for initial licensure. A licensee shall
4complete training of not less than 4 hours every 24 months after the initial training
5course. A person who holds a license under s. 632.68, 2007 stats., on the effective date
6of this paragraph .... [LRB inserts date] shall complete initial training within 6
7months after the effective date of this paragraph .... [LRB inserts date].
AB758,25,10 8(4) License suspension, revocation, or refusal to renew. (a) The
9commissioner may suspend, revoke, or refuse to renew the license of any licensee if,
10after a hearing, the commissioner finds any of the following:
AB758,25,1111 1. Any material misrepresentation in the application for the license.
AB758,25,1412 2. That the licensee or any officer, partner, member, or director of the licensee
13is guilty of fraudulent or dishonest practices, is subject to a final administrative
14action, or is otherwise shown to be untrustworthy or incompetent to act as a licensee.
AB758,25,1615 3. If the licensee is a provider, that the licensee demonstrates a pattern of
16unreasonably withholding payments to owners.
AB758,25,1717 4. That the licensee no longer meets the requirements for licensure.
AB758,25,2218 5. That the licensee or any officer, partner, member, or director of the licensee
19has been convicted of a felony or of any misdemeanor of which criminal fraud is an
20element or has pleaded other than not guilty with respect to any felony or any
21misdemeanor of which criminal fraud or moral turpitude is an element, regardless
22whether a judgment of conviction has been entered by the court.
AB758,25,2523 6. If the licensee is a provider, that the licensee has entered into any life
24settlement contract the form of which has not been approved by the commissioner
25under this section.
AB758,26,2
17. If the licensee is a provider, that the licensee has failed to honor obligations
2set out in a life settlement contract.
AB758,26,73 8. If the licensee is a provider, that the licensee has assigned, transferred, or
4pledged a settled policy to a person other than a provider licensed in this state, a
5purchaser, an accredited investor as defined in 17 CFR 230.501 (a) or a qualified
6institutional buyer as defined in 17 CFR 230.144A (a) (1), a financing entity, a special
7purpose entity, or a related provider trust.
AB758,26,98 9. That the licensee or any officer, partner, member, or key management
9personnel has violated any of the provisions of this section.
AB758,26,1110 (b) Nothing in this subsection limits the authority of the commissioner to
11summarily suspend a license under s. 227.51 (3).
AB758,26,1812 (c) The commissioner shall suspend a license if the licensee is delinquent in
13court-ordered payments of child or family support, maintenance, birth expenses,
14medical expenses, or other expenses related to the support of a child or former spouse
15or if the licensee fails to comply, after appropriate notice, with a subpoena or warrant
16issued by the department of children and families or a county child support agency
17under s. 59.53 (5) that is related to paternity or child support proceedings, as
18provided in a memorandum of understanding entered into under s. 49.857.
AB758,26,2019 (d) The commissioner shall revoke the license of a licensee if the department
20of revenue certifies under s. 73.0301 that the licensee is liable for delinquent taxes.
AB758,27,7 21(5) Contract requirements. (a) No person may use a life settlement contract
22form or provide to an owner a disclosure statement form in this state unless first filed
23with and approved by the commissioner. The form is approved if the commissioner
24does not disapprove of the form within 30 days after filing or within a 30-day
25extension of that period ordered by the commissioner before the expiration of the first

130 days. To disapprove a form, the commissioner shall state in writing the reasons
2for disapproval sufficiently explicitly that the licensee is provided reasonable
3guidance in reformulating its forms. The commissioner shall disapprove a life
4settlement contract form or disclosure statement form if the commissioner
5determines the form or provisions contained in the form fail to meet the
6requirements of this section, are unreasonable, are contrary to the interests of the
7public, or are otherwise misleading or unfair to the owner.
AB758,27,138 (b) No insurer may, as a condition of responding to a request for verification of
9coverage or in connection with the transfer of a policy under a life settlement
10contract, require that the owner, insured, provider, or broker sign any form,
11disclosure, consent, waiver, or acknowledgment that has not been expressly
12approved by the commissioner for use in connection with life settlement contracts in
13this state.
AB758,27,22 14(6) Reporting requirements and privacy. (a) 1. In addition to any other
15requirements, the annual statement that is filed with the commissioner shall specify
16the total number, aggregate face amount, and life settlement proceeds of policies
17settled during the immediately preceding calendar year, together with a breakdown
18of the information by policy issue year. The annual statement shall also include the
19names of the insurance companies whose policies have been settled and the brokers
20that were involved in settling the policies. Each provider shall provide in the annual
21statement any information about any policy settled within 5 years of policy issuance
22that the commissioner may prescribe by rule.
AB758,28,223 2. Information provided in the annual statement shall be limited to those
24transactions in which the owner is a resident of this state and shall not include
25individual transaction data regarding the business of life settlements or information

1that there is a reasonable basis to believe could be used to identify the owner or the
2insured.
AB758,28,63 3. Every provider that willfully fails to file an annual statement as required in
4this section, or willfully fails to reply within 30 days to a written inquiry by the
5commissioner regarding the annual statement, shall be subject to a forfeiture under
6s. 601.64 (3) (c) and to license suspension, revocation, or nonrenewal.
AB758,28,127 (b) A provider, broker, insurance company, producer, information bureau,
8rating agency or company, or any other person with actual knowledge of an insured's
9identity, shall not disclose the identity of an insured or information that there is a
10reasonable basis to believe could be used to identify the insured or the insured's
11financial or medical information to any other person unless one of the following
12applies:
AB758,28,1513 1. The disclosure is necessary to effect a life settlement contract between the
14owner and a provider, and the owner and insured have provided prior written
15consent to the disclosure.
AB758,28,1916 2. The disclosure is necessary to effectuate a sale of life settlement contracts,
17or interests in life settlement contracts, as investments, if the sale is conducted in
18accordance with applicable state and federal securities law and if the owner and the
19insured have both provided prior written consent to the disclosure.
AB758,28,2220 3. The disclosure is provided in response to an investigation or examination by
21the commissioner or any other governmental officer or agency or pursuant to the
22requirements of sub. (15).
AB758,28,2523 4. The disclosure is a term or condition of the transfer of a policy by one provider
24to another provider. In such cases, the receiving provider shall be required to comply
25with the confidentiality requirements of this subsection.
AB758,29,8
15. The disclosure is necessary to allow the provider or broker or their
2authorized representatives to make contacts for the purpose of determining health
3status. For the purposes of this subdivision, "authorized representative" does not
4include any person who has or may have any financial interest in the life settlement
5contract other than a provider, broker, financing entity, related provider trust, or
6special purpose entity. A provider or broker shall require its authorized
7representative to agree in writing to adhere to the privacy provisions of this
8subsection.
AB758,29,99 6. The disclosure is required to purchase stop loss coverage.
AB758,29,1210 (c) Nonpublic personal information solicited or obtained in connection with a
11proposed or actual life settlement contract shall be subject to all applicable laws of
12this state relating to confidentiality of nonpublic personal information.
AB758,29,16 13(7) Examinations and alternatives. (a) The commissioner may, whenever the
14commissioner determines it is necessary in order to be informed about any matter
15related to the enforcement of this section, examine the business and affairs of any
16licensee or applicant for a license, under the provisions of ss. 601.43 to 601.45.
AB758,29,2017 (b) The commissioner shall consider names and individual identification data
18for all owners, purchasers, and insureds private and confidential information and
19shall not disclose names or identification data unless the disclosure is to another
20regulator or is required by law.
AB758,29,2321 (c) 1. A person required to be licensed by this section shall for 5 years retain,
22and make available to the commissioner for inspection at all reasonable times in
23accordance with s. 601.42, copies of all of the following:
AB758,30,224 a. Proposed, offered, or executed life settlement contracts, purchase
25agreements, underwriting documents, policy forms, and applications from the date

1of the proposal, offer, or execution of a life settlement contract or purchase
2agreement, whichever is later.
AB758,30,53 b. All checks, drafts, or other evidence and documentation related to the
4payment, transfer, deposit, or release of funds from the date of the financing
5transaction, life settlement, or purchase agreement.
AB758,30,66 c. All other records and documents related to the requirements of this section.
AB758,30,107 2. Records required to be retained under subd. 1. must be legible and complete
8and may be retained in paper, photograph, microprocess, magnetic, mechanical or
9electronic media, or by any process that accurately reproduces or forms a durable
10medium for reproduction of a record.
AB758,30,15 11(8) Disclosures to owner; disclosure to insured. (a) 1. With each application
12for a life settlement, a provider or broker shall disclose to the owner, in a separate
13document that is signed by the owner and the provider or broker, at least all of the
14following information no later than the time the application for the life settlement
15is signed by all parties:
AB758,30,1716 a. That there are possible alternatives to life settlement contracts, including
17any accelerated death benefits or policy loans offered under the owner's policy.
AB758,30,2018 b. That the broker represents exclusively the owner, and not the insurer or the
19provider, and owes a fiduciary duty to the owner, including the duty to act according
20to the owner's instructions and in the best interest of the owner.
AB758,30,2321 c. That some or all of the proceeds of the life settlement may be taxable under
22federal income tax and state franchise and income tax laws, and the owner should
23seek assistance from a professional tax advisor.
AB758,30,2424 d. That proceeds from a life settlement may be subject to the claims of creditors.
AB758,31,4
1e. That receipt of proceeds from a life settlement may adversely affect the
2owner's eligibility for Medical Assistance or other government benefits or
3entitlements, and the owner should seek advice from the appropriate government
4agencies.
AB758,31,155 f. That the owner has a right to rescind a life settlement contract before the
6earlier of 30 calendar days after the date upon which the life settlement contract is
7executed by all parties or 15 calendar days after the life settlement proceeds have
8been paid to the owner, as provided in sub. (11) (d). Rescission, if exercised by the
9owner, is effective only if both notice of the rescission is given and the owner repays
10all proceeds and any premiums, loans, and loan interest paid on account of the life
11settlement within the rescission period. If the insured dies during the rescission
12period, the life settlement contract is rescinded, subject to repayment by the owner
13or the owner's estate to the provider or purchaser of all life settlement proceeds, and
14any premiums, loans, and loan interest that have been paid by the provider or
15purchaser, which shall be repaid within 60 calendar days of the death of the insured.
AB758,31,1916 g. That funds will be sent to the owner within 3 business days after the provider
17has received the insurer's or group administrator's written acknowledgement that
18ownership of the policy or interest in the certificate has been transferred and the
19beneficiary has been designated.
AB758,31,2320 h. That entering into a life settlement contract may cause other rights or
21benefits, including conversion rights and waiver of premium benefits that may exist
22under the policy, to be forfeited by the owner, and the owner should seek assistance
23from a professional financial advisor.
AB758,32,624 i. The language: "All medical, financial, or personal information solicited or
25obtained by a provider or broker about an insured, including the insured's identity

1or the identity of family members, a spouse, or a significant other, may be disclosed
2as necessary to effect the life settlement between the owner and provider. If you are
3asked to provide this information, you will be asked to consent to the disclosure. The
4information may be provided to someone who buys the policy or provides funds for
5the purchase. You may be asked to renew your permission to share information every
62 years."
AB758,32,157 j. That, following execution of a life settlement contract, the insured may be
8contacted for the purpose of determining the insured's health status and to confirm
9the insured's residential or business street address and telephone number, or as
10otherwise allowed in this section. This contact shall be limited to once every 3
11months if the insured has a life expectancy of more than one year and no more than
12once per month if the insured has a life expectancy of one year or less. All such
13contacts with the insured shall be made only by a provider licensed in the state in
14which the owner resided at the time of the life settlement, or by an authorized
15representative of the provider.
AB758,32,1816 2. At the time the disclosures in subd. 1. are provided, the broker or provider
17shall provide to the owner a brochure describing the process of life settlements that
18is approved by the commissioner.
AB758,32,2219 (b) A provider shall disclose to the owner, either conspicuously displayed in the
20life settlement contract or in a separate document signed by the owner, at least all
21of the following information no later than the date the life settlement contract is
22signed by all parties:
AB758,32,2423 1. The affiliation, if any, between the provider and the issuer of the policy to be
24settled.
AB758,32,2525 2. The name, business address, and telephone number of the provider.
AB758,33,2
13. Any affiliation or contractual arrangements between the provider and the
2purchaser.
AB758,33,73 4. If a policy to be settled has been issued as a joint policy or involves family
4riders or any coverage of a life other than that of the insured under the policy to be
5settled, the possible loss of coverage on the other lives under the policy, together with
6a statement advising the owner to consult with the insurer issuing the policy for
7advice concerning the proposed life settlement.
AB758,33,138 5. The dollar amount of the current death benefit that will be payable to the
9provider under the policy. If known, the provider shall also disclose the availability
10of any additional guaranteed insurance benefits, the dollar amount of any accidental
11death and dismemberment benefits under the policy, and the extent to which the
12owner's interest in those benefits will be transferred as a result of the life settlement
13contract.
AB758,33,1714 6. That the funds will be escrowed with an independent 3rd party during the
15transfer process; the name, business address, and telephone number of the
16independent 3rd party escrow agent; and that the owner may inspect or receive
17copies of the relevant escrow or trust agreements or documents.
AB758,33,2118 (c) A broker shall disclose to the owner, either conspicuously displayed in the
19life settlement contract or in a separate document signed by the owner, at least all
20of the following information no later than the date the life settlement contract is
21signed by all parties:
AB758,33,2222 1. The name, business address, and telephone number of the broker.
AB758,33,2423 2. A full, complete, and accurate description of all offers, counteroffers,
24acceptances, and rejections related to the proposed life settlement contract.
AB758,34,3
13. A written statement of any affiliation or contractual arrangement between
2the broker and any person making an offer in connection with the proposed life
3settlement contract.
AB758,34,54 4. The amount of the broker's compensation, including anything of value paid
5or given to the broker for the placement of the policy.
AB758,34,86 5. If any portion of the broker's compensation is taken from a proposed life
7settlement, the total amount of the life settlement offer and the percentage of the life
8settlement comprised by the broker's compensation.
AB758,34,119 (d) If the provider transfers ownership or changes the beneficiary of the policy,
10the provider shall communicate in writing the change in ownership or beneficiary to
11the insured within 20 days after the change.
AB758,34,15 12(9) Disclosures to purchaser. (a) 1. A provider shall disclose to a purchaser,
13conspicuously displayed in the purchase agreement or in a separate document signed
14by the purchaser and provider, at least all of the following information prior to the
15date the purchase agreement is signed by all parties:
AB758,34,1716 a. That the purchaser will receive no returns, including dividends and interest,
17until the insured dies and a death claim payment is made.
AB758,34,2018 b. That the actual rate of return on a life settlement contract is dependent upon
19an accurate projection of the insured's life expectancy and the actual date of the
20insured's death and that an annual guaranteed rate of return is not determinable.
AB758,34,2421 c. That the settled policy should not be considered a liquid purchase since it is
22impossible to predict the exact timing of its maturity and the funds are not available
23until the death of the insured and that there is no established secondary market for
24resale of a settled policy by the purchaser.
AB758,35,3
1d. That the purchaser may lose all benefits or may receive substantially
2reduced benefits if the insurer goes out of business during the contract term of the
3life settlement investment.
AB758,35,94 e. That the purchaser is responsible for payment of the insurance premiums
5or other costs related to the policy, if required by the terms of the purchase
6agreement, even if the insured returns to health, and that the payments may reduce
7the purchaser's return. If a party other than the purchaser is responsible for the
8payment, the name and address of the party responsible for payment shall be
9disclosed.
AB758,35,1010 f. The amount of the premiums, if applicable.
AB758,35,1211 g. The name, business address, and telephone number of the independent 3rd
12party providing escrow services and any relationship to the broker.
AB758,35,1313 h. The amount of any trust fees or expenses to be charged the purchaser.
AB758,35,1614 i. Whether the purchaser is entitled to a refund of all or part of the purchaser's
15investment under the purchase agreement if the policy is later determined to be null
16and void.
AB758,35,2117 j. That group policies may contain limitations or caps in the conversion rights,
18that additional premiums may have to be paid if the policy is converted, the name
19of the party responsible for payment of any additional premiums, and that if a group
20policy is terminated and replaced by another group policy, there may be no right to
21convert the original coverage.
AB758,35,2422 k. The risks associated with policy contestability, including the risk that the
23purchaser will have no claim or only a partial claim to death benefits should the
24insurer rescind the policy within the contestability period.
AB758,36,4
1L. Whether the purchaser will be the owner of the policy in addition to being
2the beneficiary, and if the purchaser is the beneficiary only and not also the owner,
3the special risks associated with that status, including the risk that the beneficiary
4may be changed or the premium may not be paid.
AB758,36,85 m. The experience and qualifications of the person who determines the life
6expectancy of the insured, including in-house staff, independent physicians, and
7specialty firms that weigh medical and actuarial data, the information the projection
8is based on, and the relationship of the projection maker to the provider, if any.
AB758,36,119 2. At the time the disclosures in subd. 1. are provided, the provider shall provide
10to the purchaser a brochure approved by the commissioner describing the process of
11the purchase of a settled policy.
AB758,36,1412 (b) A provider shall disclose to a purchaser, in a document signed by the
13purchaser and provider, at least all of the following no later than at the time of the
14assignment, transfer, or sale of all of or an interest in a policy:
AB758,36,1615 1. All the life expectancy certifications obtained by the provider in the process
16of determining the price to be paid to the owner.
AB758,36,2117 2. Whether the premium payments or other costs related to the policy have
18been escrowed and, if so, the date upon which the escrowed funds will be depleted,
19whether the purchaser will be responsible for payment of premiums after the
20depletion of escrowed funds, and the amount of the premium if the purchaser is
21responsible for payment.
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