Florida Senate - 2017 COMMITTEE AMENDMENT
Bill No. CS for SB 1600
Ì549508AÎ549508
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/20/2017 .
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The Committee on Appropriations (Young) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 190 - 256
4 and insert:
5 626.99287 Contestability of viaticated policies.—
6 (1) Except as hereinafter provided, if a viatical
7 settlement contract is entered into within the 2-year period
8 commencing with the date of issuance of the insurance policy or
9 certificate to be acquired, the viatical settlement contract is
10 void and unenforceable by either party.
11 (2) Except as hereinafter provided, if a viatical
12 settlement policy is subject to a loan secured directly or
13 indirectly by an interest in the policy within a 5-year period
14 commencing on the date of issuance of the policy or certificate,
15 the viatical settlement contract is void and unenforceable by
16 either party.
17 (3) Notwithstanding the limitations in subsections (1) and
18 (2) this limitation, such a viatical settlement contract is not
19 void and unenforceable if the viator provides a sworn affidavit
20 and accompanying independent evidentiary documentation
21 certifying to the viatical settlement provider that one or more
22 of the following conditions were met during the periods
23 applicable to the viaticated policy as stated in subsections (1)
24 or (2):
25 (a)(1) The policy was issued upon the owner’s exercise of
26 conversion rights arising out of a group or term policy, if the
27 total time covered under the prior policy is at least 60 months.
28 The time covered under a group policy must be calculated without
29 regard to any change in insurance carriers, provided the
30 coverage has been continuous and under the same group
31 sponsorship.;
32 (b)(2) The owner of the policy is a charitable organization
33 exempt from taxation under 26 U.S.C. s. 501(c)(3).;
34 (3) The owner of the policy is not a natural person;
35 (4) The viatical settlement contract was entered into
36 before July 1, 2000;
37 (c)(5) The viator certifies by producing independent
38 evidence to the viatical settlement provider that one or more of
39 the following conditions were have been met within the 2-year
40 period:
41 (a)1. The viator or insured is terminally or chronically
42 ill diagnosed with an illness or condition that is either:
43 a. Catastrophic or life threatening; or
44 b. Requires a course of treatment for a period of at least
45 3 years of long-term care or home health care; and
46 2. the condition was not known to the insured at the time
47 the life insurance contract was entered into;.
48 2.(b) The viator’s spouse dies;
49 3.(c) The viator divorces his or her spouse;
50 4.(d) The viator retires from full-time employment;
51 5.(e) The viator becomes physically or mentally disabled
52 and a physician determines that the disability prevents the
53 viator from maintaining full-time employment;
54 6.(f) The owner of the policy was the insured’s employer at
55 the time the policy or certificate was issued and the employment
56 relationship terminated;
57 7.(g) A final order, judgment, or decree is entered by a
58 court of competent jurisdiction, on the application of a
59 creditor of the viator, adjudicating the viator bankrupt or
60 insolvent, or approving a petition seeking reorganization of the
61 viator or appointing a receiver, trustee, or liquidator to all
62 or a substantial part of the viator’s assets; or
63 8.(h) The viator experiences a significant decrease in
64 income which is unexpected by the viator and which impairs his
65 or her reasonable ability to pay the policy premium.
66 (d) The viator entered into a viatical settlement contract
67 more than 2 years after the policy’s issuance date and, with
68 respect to the policy, at all times before the date that is 2
69 years after policy issuance, each of the following conditions is
70 met:
71 1. Policy premiums have been funded exclusively with
72 unencumbered assets, including an interest in the life insurance
73 policy being financed only to the extent of its net cash
74 surrender value, provided by, or fully recourse liability
75 incurred by, the insured;
76 2. There is no agreement or understanding with any other
77 person to guarantee any such liability or to purchase, or stand
78 ready to purchase, the policy, including through an assumption
79 or forgiveness of the loan; and
80 3. Neither the insured or the policy has been evaluated for
81 settlement.
82
83 ================= T I T L E A M E N D M E N T ================
84 And the title is amended as follows:
85 Delete lines 11 - 15
86 and insert:
87 F.S.; providing that a viatical settlement contract is
88 void and unenforceable by either party if the viatical
89 settlement policy is subject, within a specified
90 timeframe, to a loan secured by an interest in the
91 policy; revising conditions and requirements in which
92 viatical settlement contracts entered into within
93 specified timeframes are valid and enforceable;
94 deleting