75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
HA to A-Eng. SB 973
 
LC 3715/SB 973-A14
 
                       HOUSE AMENDMENTS TO
                   A-ENGROSSED SENATE BILL 973
 
               By COMMITTEE ON CONSUMER PROTECTION
 
                             June 4
 
  On page 1 of the printed A-engrossed bill, line 6, delete '5
and 11 to 19' and insert '5, 11 to 19 and 22'.
  On page 9, line 4, delete '30th' and insert '60th'.
  In line 5, delete '15th' and insert '30th'.
  On page 11, delete lines 5 through 7 and insert:
  ' (e) Receipt of proceeds from a life settlement contract may
affect the owner's eligibility for public assistance or other
government benefits or entitlements, and advice should be
obtained from appropriate agencies. Receipt of proceeds from a
life settlement contract may reduce the owner's risk of becoming
impoverished and becoming dependent on public assistance or other
government benefits or entitlements.'.
  On page 18, delete lines 14 through 24 and insert:
  '  { +  SECTION 15. + } (1) With respect to a life settlement
contract or insurance policy, it is unlawful for a life
settlement broker to knowingly solicit an offer from, effectuate
a life settlement contract with or make a sale to a life
settlement provider, financing entity or related provider trust
that is controlling, controlled by or under common control with a
life settlement broker, unless that relationship is disclosed to
the owner.
  ' (2) With respect to a life settlement contract or insurance
policy, it is unlawful for a life settlement broker to knowingly
enter into a life settlement contract with an owner if, in
connection with the life settlement contract, anything of value
will be paid to a life settlement broker that is controlling,
controlled by or under common control with a life settlement
provider, financing entity or related provider trust that is
involved in the settlement contract, unless that relationship is
disclosed to the owner.'.
  On page 23, line 23, after the period insert 'Nothing in this
subsection shall be construed to alter the provisions of ORS
743.168 or 743.171 relating to the period of incontestability of
a policy of life insurance.'.
  On page 27, after line 3, insert:
  '  { +  SECTION 22. + }  { + (1) With respect to each policy
issued by an insurance company, the insurance company shall
notify the owner of an individual life insurance policy when the
insured person under such a policy is 60 years of age or older,
or is known to be terminally ill or chronically ill, that there
may be alternative transactions available to that owner at the
time of each of the following:
  ' (a) When a life insurance company receives from such an owner
a request to surrender, in whole or in part, an individual
policy;
  ' (b) When a life insurance company receives from such an owner
a request to receive an accelerated death benefit under an
individual policy;
  ' (c) When a life insurance company sends to such an owner all
notices of lapse of an individual policy; or
  ' (d) At any other time that the Director of the Department of
Consumer and Business Services may require by rule.
  ' (2)(a) The director shall approve a document calculated to
apprise the consumer of the consumer's rights as an owner of a
life insurance policy. The document must be made available at no
cost to all insurance companies and life insurance producers and
written so as to be understandable to individuals who are not in
the insurance business.
  ' (b) The document must advise the consumer:
  ' (A) That life insurance is a critical part of a broader
financial plan, and that the consumer is encouraged, and has a
right, to seek additional financial advice and opinions;
  ' (B) That possible alternatives to lapse exist; and
  ' (C) Of the definitions of common industry terms.
  ' (c) In addition to the information described in paragraphs
(a) and (b) of this subsection, the document must contain the
following statement in large, bold or otherwise conspicuous
typeface: 'Life insurance is a critical part of a broader
financial plan. There are many options available, and you have
the right to shop around and seek advice from different financial
advisers in order to find the option best suited to your needs. '
  ' (d) The document may include brief descriptions of common
products available from providers. These products must be
discussed in general terms for informative purposes only, and not
identifiable to any specific provider.
  ' (e) The document is considered part of the notice required in
subsection (1) of this section. + } ' .
  In line 4, delete '22' and insert '23'.
  In line 5, delete '23' and insert '24'.
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