Members of the North Dakota state Senate have voted 45-0 to pass a life settlement bill based on a draft model now being debated by regulators at the National Association of Insurance Commissioners.
The bill, Senate Bill 2268, was introduced by state Sens. Jerry Klein, R-Fessenden, N.D.; Nicholas Hacker, R-Grand Forks, N.D.; and Joel Heitkamp, D-Hankinson, N.D.
S.B. 2268 must go through a second legislative vetting, including a public hearing in the House, before being voted on by the House. If the full North Dakota legislature endorses the bill, it would go to Gov. John Hoeven, a Republican, for his signature.
If passed, the bill would become effective Aug. 1.
The bill resembles a draft of proposed changes to the Viatical Settlements model act developed by North Dakota Insurance Commissioner Jim Poolman.
An update of the model now being debated at the NAIC, Kansas City, Mo., includes a rule requiring most policyholders to keep life contracts for 5 years before selling the contracts.