Senate Bill 2004c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1998 CS for SB 2004
By the Committee on Banking and Insurance and Senator Burt
311-1951-98
1 A bill to be entitled
2 An act relating to the Viatical Settlement Act;
3 amending s. 626.9911, F.S.; modifying
4 definitions used in the act and adding a
5 definition of related provider trust; amending
6 s. 626.9913, F.S.; requiring viatical
7 settlement providers to file certain
8 information with the Department of Insurance;
9 specifying applicability of fee and deposit
10 requirements; amending s. 626.9914, F.S.;
11 specifying liability of a viatical settlement
12 provider for a related provider trust; amending
13 s. 626.9921, F.S.; requiring certain providers
14 to file notice with the department; providing
15 an effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Subsections (5) and (6) of section
20 626.9911, Florida Statutes, are amended and subsection (8) is
21 added to that section, to read:
22 626.9911 Definitions.--As used in this act, the term:
23 (5) "Viatical settlement contract" means a written
24 settlement entered into between a viatical settlement
25 provider, or its related provider trust, and a viator. The
26 agreement must establish the terms under which the viatical
27 settlement provider will pay compensation or anything of
28 value.
29 (6) "Viatical settlement provider" means a person who,
30 in this state or from this state, enters into a viatical
31 settlement contract with a viator. The term does not include:
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1998 CS for SB 2004
311-1951-98
1 (a) Any bank, savings bank, savings and loan
2 association, credit union, or other licensed lending
3 institution that takes an assignment of a life insurance
4 policy as collateral for a loan;
5 (b) A life and health insurer that has lawfully issued
6 a life insurance policy that provides accelerated benefits to
7 terminally ill policyholders or certificateholders; or
8 (c) Any natural person who enters into no more than
9 one viatical settlement contract with a viator in 1 calendar
10 year, unless such natural person has previously been licensed
11 under this act or is currently licensed under this act.
12 (d) A trust that meets the definition of a "related
13 provider trust".
14 (8) "Related provider trust" means a trust established
15 by a viatical settlement provider for the sole purpose of
16 entering into or owning viatical settlement contracts. A
17 related provider trust shall be subject to all provisions of
18 this act that apply to the viatical settlement provider who
19 established the related provider trust, except s. 626.9912,
20 which shall not be applicable. A viatical settlement provider
21 may establish no more than one related provider trust, and the
22 sole trustee of such related provider trust shall be the
23 viatical settlement provider licensed under s. 626.9912. The
24 name of the licensed viatical settlement provider shall be
25 included within the name of the related provider trust.
26 Section 2. Subsection (2) of section 626.9913, Florida
27 Statutes, is amended and subsection (4) is added to that
28 section, to read:
29 626.9913 Viatical settlement provider license
30 continuance; annual report; fees; deposit.--
31
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1998 CS for SB 2004
311-1951-98
1 (2) Annually, on or before March 1, the viatical
2 settlement provider licensee shall file a statement containing
3 information the department requires and shall pay to the
4 department a license fee in the amount of $500. A viatical
5 settlement provider shall include in all statements filed with
6 the department all information requested by the department
7 regarding a related provider trust established by the viatical
8 settlement provider. The department may require more frequent
9 reporting. Failure to timely file the annual statement or to
10 timely pay the license fee is grounds for immediate suspension
11 of the license.
12 (4) There shall be no additional annual license fee or
13 deposit requirements under this act for a related provider
14 trust established by a viatical settlement provider.
15 Section 3. Subsection (4) is added to section
16 626.9914, Florida Statutes, to read:
17 626.9914 Suspension, revocation, or nonrenewal of
18 viatical settlement provider license; grounds; administrative
19 fine.--
20 (4) If a viatical settlement provider establishes a
21 related provider trust as permitted by this act, the viatical
22 settlement provider shall be liable and responsible for the
23 performance of all obligations of the related provider trust
24 under all viatical settlement contracts entered into by the
25 related provider trust, and for the compliance of the related
26 provider trust with all provisions of this act. Any violation
27 of this act by the related provider trust shall be deemed a
28 violation of this act by the viatical settlement provider as
29 well as the related provider trust. If the related provider
30 trust violates any provisions of this act, the department may
31 exercise all remedies set forth in this act for such
3
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1998 CS for SB 2004
311-1951-98
1 violations against the viatical settlement provider, as well
2 as the related provider trust.
3 Section 4. Subsection (1) of section 626.9921, Florida
4 Statutes, is amended, and subsection (3) is added to that
5 section, to read:
6 626.9921 Filing of forms; required procedures;
7 approval.--
8 (1) A viatical settlement contract form or related
9 form may be used in this state only after the viatical
10 settlement provider or related provider trust has filed the
11 form with the department and only after the form has been
12 approved by the department.
13 (3) If a viatical settlement provider elects to use a
14 related provider trust in accordance with this act, the
15 viatical settlement provider shall file notice of its
16 intention to use a related provider trust with the department,
17 including a copy of the trust agreement of the related
18 provider trust.
19 Section 5. This act shall take effect July 1, 1998.
20
21
22
23
24
25
26
27
28
29
30
31
4
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1998 CS for SB 2004
311-1951-98
1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 2004
3
4 Authorizes a viatical settlement provider to establish a
"related provider trust" for the sole purpose of entering into
5 or owning viatical settlement contracts.
6 Requires the related provider trust to be subject to all
provisions that apply to viatical settlement providers except
7 that a separate license would not be required for the trust.
Only one such trust could be established by a viatical
8 settlement provider, who would be the sole trustee. The
licensed provider would be liable and responsible for the
9 performance of all obligations of the related provider trust
under all viatical settlement contracts entered into by the
10 trust. Any violation of the act by the related provider trust
would be deemed a violation of the act by the provider as well
11 as the trust. If the trust violates any provisions of the act,
the department could exercise all remedies for such violations
12 against the viatical settlement provider, as well as the
trust. The provider would be required to file notice of its
13 intention to use a related provider trust, including a copy of
the trust agreement, and include all information requested by
14 the department regarding the trust in all statements filed
with the department.
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
5