995059                                                     
GENERAL APPROPRIATIONS BILL                          Committee       Amendment
SB1500                                                  AGG              25


Senator(s) Smith moved the following amendment:

Section: 06              EXPLANATION:

On Page: 295             Requires the Office of Insurance Regulation to 
                         study, hold hearings, and issue a report by 
Spec App:                December 31, 2013, regarding the unfair and 
                         deceptive business practices in the secondary life 
                         insurance market.

NET IMPACT ON:            Total Funds       General Revenue          Trust Funds
    Recurring -                    0                     0                    0 
Non-Recurring -                    0                     0                    0 
______________________________________________________________________________________

                                               Positions & Amount   Positions & Amount
                                                     DELETE         INSERT

        FINANCIAL SERVICES, DEPARTMENT OF
        Program: Financial Services Commission
        Office Of Insurance Regulation
        Compliance And Enforcement - Insurance  43900110

        In Section 06  On Page 295

In Section 06, on Page 295, DELETE the following:

The   Office  of  Insurance  Regulation  shall  investigate  unfair  and
deceptive  business  practices  in  the secondary life insurance market,
including but not limited to: the failure to advise policy owners that a
policy  has  an  insurance  interest;  denied benefits on life insurance
policies  after the two year contestability period; illegal increases in
the  insurance  rate;  and refusing to return premiums to life insurance
policy  owners  after a policy is rescinded or determined to be invalid.
The  Office of Insurance Regulation shall issue a report on the findings
by September 30, 2013.

AND INSERT:

The Office of Insurance Regulation shall study and hold hearings 
regarding the unfair and deceptive business practices in the secondary 
life insurance market in Florida, including but not limited to: the 
failure to advise policy owners that a policy has an insurable  
interest; denied benefits on life insurance policies after the two year 

 995059  Log:0004  GGB/GGB           04/08/13 07:16:05 PM  Senate  Page: 1
contestability period; illegal increases in the insurance rate; failure 
to return premiums to policyholders after a policy is rescinded or 
determined to be invalid; the use of multiple life insurance trusts to 
disguise the true owner of the policy; the use of non-recourse premium 
financing to purchase the policy; the level of due diligence exercised 
by a secondary purchaser/investor; whether the secondary 
purchaser/investor required warranties in the sales agreements for 
protection against policies issued without an insurable interest and 
without fraud; whether the secondary purchaser/investor has sought 
reimbursement from the seller of the policies; and knowledge of a 
secondary purchaser/investor that stranger originated life insurance 
policies were or may be included in the portfolio of policies purchased.  
The Office of Insurance Regulation shall issue a report on the findings
by December 31, 2013.





































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