75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
CCA to B-Eng. SB 973
 
LC 3715/SB 973-B19
 
               CONFERENCE COMMITTEE AMENDMENTS TO
                   B-ENGROSSED SENATE BILL 973
 
                             June 18
 
 
 
 
                         Amended Summary
  Revises regulations for life settlement insurance.
  Imposes regulations on life settlement investment agents.
Creates new reporting requirements and disclosure requirements
for persons in business of life settlements. Expands regulations
on advertising of life settlement contracts, purchase agreements
and related products.
  Increases length of time life insurance policy owner is allowed
to rescind life settlement contract. Permits life settlement
contracts for policy owner and insured who are not terminally or
chronically ill. Limits frequency of contact of insured for
purpose of determining insured's health status after execution of
life settlement contract.
  Expands list of prohibited actions by persons in business of
life settlements. Prohibits stranger-originated life insurance
practices. Subject to exemptions, requires minimum of five-year
time period between issuance of life insurance policy and
agreement to life settlement contract. Requires life settlement
providers and brokers to prepare and implement anti-fraud
initiatives.
  Adds private right of civil action against persons violating
Act. Makes violation of Act unlawful trade practice. Makes
certain violations of Act subject to criminal prosecution as
theft or forgery.
  Requires insurance company to   { - give - }   { + provide + }
notice to life insurance policy owner who is 60 years of age or
older   { - of alternatives to specified transactions - }  { +
that other options for life insurance are available under certain
circumstances + }.
    { - Requires Director of Department of Consumer and Business
Affairs to approve document that apprises life insurance policy
owner of policy owner's rights. - }
   { +  Directs Director of Department of Consumer and Business
Services to inform public about rights of life insurance policy
owners. + }
 
President Courtney:
  Your Conference Committee to whom was referred B-engrossed
Senate Bill 973, having had the same under consideration,
respectfully reports it back with the recommendation that the
Senate concur in the House amendments dated June 4 and that the
bill be amended as follows and repassed.
 
  On page 27 of the printed B-engrossed bill, delete lines 10
through 41 and insert:
  '  { +  SECTION 22. + }  { + (1) With respect to each policy
issued by an insurance company, the insurance company shall
provide notice to the owner of an individual life insurance
 
policy when the insured person under such a policy is 60 years of
age or older and:
  ' (a) The life insurance company receives notice from such an
owner of a request to surrender, in whole or in part, an
individual policy;
  ' (b) The life insurance company receives notice from such an
owner of a request to receive an accelerated death benefit under
an individual policy; or
  ' (c) The life insurance company sends to such an owner all
notices of lapse of an individual policy, other than a term
policy.
  ' (2)(a) The notice must consist of the following statement in
large, bold or otherwise conspicuous typeface calculated to draw
the eye: '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. '
  ' (b) The communication of the notice must also contain a
statement advising the recipient that the recipient may contact
the Insurance Division of the Department of Consumer and Business
Services for more information, and must include an address or
other location or manner by which the recipient may contact the
Insurance Division.
  ' (c) The department shall adopt by rule the appropriate
address or other location or manner of contact to be included in
the required notice.
  ' (3)(a) The Director of the Department of Consumer and
Business Services shall make available to the public information
designed to educate the consumer about the consumer's rights as
an owner of a life insurance policy. The information must be
written in lay terms and 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.
  ' (b) The information described in paragraph (a) of this
subsection may include brief descriptions of common products
available from licensees. These products must be discussed in
general terms for informative purposes only, and not be
identifiable to any specific licensee. + } ' .
 
                         /sSuzanne Bonamici
                           Senator
 
                         /sFred Girod
                           Senator
 
                         /sDiane Rosenbaum
                           Senator
 
                         /sPaul Holvey
                           Representative
 
                         /sJean Cowan
                           Representative
 
                         /sWayne Krieger
                           Representative
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