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1995 SESSION

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HJ 566 Study; need for regulation of viatical agreements.

Introduced by: Marian Van Landingham | all patrons    ...    notes | add to my profiles

SUMMARY:

Need for regulation of viatical agreements. Requests the Bureau of Insurance to study the need for regulation of viatical agreements--unregulated settlements for the transfer of all rights to current life insurance policies to a third party in exchange for discounted cash payments. Viatical settlements are available to terminally ill individuals who do not have access to living or accelerated benefits and for individuals with longer than six-month life expectancies, e.g., two years or more. The amount of the payment depends on such factors as life expectancy, policy value, premium waivers, litigation risks, policy type, and interest rate fluctuations. These unregulated activities are being aggressively marketed to terminally ill people, particularly those living with AIDS, and raise issues related to confidentiality, consumer protection, disclosure of possible consequences, etc. This resolution is a recommendation of the Joint Subcommittee Studying the Issues, Policies, and Programs Relating to Infection with Human Immunodeficiency Viruses, and the study results must be reported to the Joint Subcommittee by December 1, 1995.


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