Florida Senate - 2005 SENATOR AMENDMENT
Bill No. CS for SB 2412
Barcode 684410
CHAMBER ACTION
Senate House
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11 Senator Garcia moved the following amendment:
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13 Senate Amendment
14 On page 16, line 24, through
15 page 20, line 7, delete those lines
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17 and insert:
18 (4) "Life expectancy provider" means a person who
19 determines, or holds himself or herself out as determining,
20 life expectancies or mortality ratings used to determine life
21 expectancies:
22 (a) On behalf of a viatical settlement provider,
23 viatical settlement broker, life agent, or person engaged in
24 the business of viatical settlements;
25 (b) In connection with a viatical settlement
26 investment, pursuant to s. 517.021(22); or
27 (c) On residents of this state in connection with a
28 viatical settlement contract or viatical settlement
29 investment.
30 (5)(2) "Person" has the meaning specified in s. 1.01.
31 (6)(12) "Related form" means any form, created by or
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Florida Senate - 2005 SENATOR AMENDMENT
Bill No. CS for SB 2412
Barcode 684410
1 on behalf of a licensee, which a viator or viatical settlement
2 purchaser is required to sign or initial. The forms include,
3 but are not limited to, a power of attorney, a release of
4 medical information form, a suitability questionnaire, a
5 disclosure document, or any addendum, schedule, or amendment
6 to a viatical settlement contract or viatical settlement
7 purchase agreement considered necessary by a provider to
8 effectuate a viatical settlement transaction.
9 (7) "Related provider trust" means a titling trust or
10 other trust established by a licensed viatical settlement
11 provider or financing entity for the sole purpose of holding
12 the ownership or beneficial interest in purchased policies in
13 connection with a financing transaction. The trust must have a
14 written agreement with a licensed viatical settlement provider
15 or financing entity under which the licensed viatical
16 settlement provider or financing entity is responsible for
17 insuring compliance with all statutory and regulatory
18 requirements and under which the trust agrees to make all
19 records and files relating to viatical settlement transactions
20 available to the office as if those records and files were
21 maintained directly by the licensed viatical settlement
22 provider. This term does not include an independent
23 third-party trustee or escrow agent or a trust that does not
24 enter into agreements with a viator. A related provider trust
25 shall be subject to all provisions of this act that apply to
26 the viatical settlement provider who established the related
27 provider trust, except s. 626.9912, which shall not be
28 applicable. A viatical settlement provider may establish no
29 more than one related provider trust, and the sole trustee of
30 such related provider trust shall be the viatical settlement
31 provider licensed under s. 626.9912. The name of the licensed
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Florida Senate - 2005 SENATOR AMENDMENT
Bill No. CS for SB 2412
Barcode 684410
1 viatical settlement provider shall be included within the name
2 of the related provider trust.
3 (8)(13) "Special purpose entity" means an entity
4 established by a licensed viatical settlement provider or by a
5 financing entity, which may be a corporation, partnership,
6 trust, limited liability company, or other similar entity
7 formed solely to provide, either directly or indirectly,
8 access to institutional capital markets to a viatical
9 settlement provider or financing entity. A special purpose
10 entity may not obtain capital from any natural person or
11 entity with less than $50 million in assets and may shall not
12 enter into a viatical settlement contract or a viatical
13 settlement purchase agreement.
14 (9)(3) "Viatical settlement broker" means a person
15 who, on behalf of a viator and for a fee, commission, or other
16 valuable consideration, offers or attempts to negotiate
17 viatical settlement contracts between a viator resident in
18 this state and one or more viatical settlement providers.
19 Notwithstanding the manner in which the viatical settlement
20 broker is compensated, a viatical settlement broker is deemed
21 to represent only the viator and owes a fiduciary duty to the
22 viator to act according to the viator's instructions and in
23 the best interest of the viator. The term does not include an
24 attorney, licensed Certified Public Accountant, or investment
25 adviser lawfully registered under chapter 517, who is retained
26 to represent the viator and whose compensation is paid
27 directly by or at the direction and on behalf of the viator.
28 (10)(4) "Viatical settlement contract" means a written
29 agreement entered into between a viatical settlement provider,
30 or its related provider trust, and a viator. The viatical
31 settlement contract includes an agreement to transfer
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Florida Senate - 2005 SENATOR AMENDMENT
Bill No. CS for SB 2412
Barcode 684410
1 ownership or change the beneficiary designation of a life
2 insurance policy at a later date, regardless of the date that
3 compensation is paid to the viator. The agreement must
4 establish the terms under which the viatical settlement
5 provider will pay compensation or anything of value, which
6 compensation or value is less than the expected death benefit
7 of the insurance policy or certificate, in return for the
8 viator's assignment, transfer, sale, devise, or bequest of the
9 death benefit or ownership of all or a portion of the
10 insurance policy or certificate of insurance to the viatical
11 settlement provider. A viatical settlement contract also
12 includes a contract for a loan or other financial transaction
13 secured primarily by an individual or group life insurance
14 policy, other than a loan by a life insurance company pursuant
15 to the terms of the life insurance contract, or a loan secured
16 by the cash value of a policy.
17 (11) "Viatical settlement investment" has the same
18 meaning as specified in s. 517.021.
19 (12)(5) "Viatical settlement provider" means a person
20 who, in this state, from this state, or with a resident of
21 this state, effectuates a viatical settlement contract. The
22 term does not include:
23 (a) Any bank, savings bank, savings and loan
24 association, credit union, or other licensed lending
25 institution that takes an assignment of a life insurance
26 policy as collateral for a loan.
27 (b) A life and health insurer that has lawfully issued
28 a life insurance policy that provides accelerated benefits to
29 terminally ill policyholders or certificateholders.
30 (c) Any natural person who enters into no more than
31 one viatical settlement contract with a viator in 1 calendar
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Florida Senate - 2005 SENATOR AMENDMENT
Bill No. CS for SB 2412
Barcode 684410
1 year, unless such natural person has previously been licensed
2 under this act or is currently licensed under this act.
3 (d) A trust that meets the definition of a "related
4 provider trust."
5 (e) A viator in this state.
6 (f) A viatical settlement purchaser.
7 (f)(g) A financing entity.
8 (13)(11) "Viaticated policy" means a life insurance
9 policy, or a certificate under a group policy, which is the
10 subject of a viatical settlement contract.
11 (14)(6) "Viator" means the owner of a life insurance
12 policy or a certificateholder under a group policy, which
13 policy is not a previously viaticated policy, who enters or
14 seeks to
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