SB445 Alabama 2010 Session

Summary

Primary Sponsor

Rodger Smitherman Senator

Democrat

Co-Sponsor

Bobby D. Singleton

Session

Regular Session 2010

Title

Life settlement contracts, providers, licensure and regulation, enforcement by Commissioner of Insurance Department, criminal and civil penalties, Life Settlements Act

Description

This bill would provide for licensure of providers and brokers of life settlement contracts.

This bill would define terms and provide for licensure requirements and fees.

This bill would allow the Commissioner of the Department of Insurance the authority to suspend, revoke, or refuse to renew a license under certain circumstances.

This bill would require that life settlement contracts and purchase agreement forms be filed with, and approved by, the commissioner; require providers to annually submit statements or reports to the commission regarding settlements of life proceeds; and allow the commissioner to examine the business and affairs of any licensee or applicant for licensure.

This bill would allow providers to advertise; require providers to disclose certain information regarding life settlement contracts; and require written signed disclosures.

This bill would allow the commissioner to promulgate rules to regulate providers, brokers, insurers, and their agents.

This bill would provide for criminal and civil penalties for violations.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

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Subjects

Life Settlement Contracts