Members of the North Dakota House of Representatives today voted 75-18 to pass S.B. 2268, a bill that would update the state’s viatical settlements law.

The North Dakota Senate passed the bill by a unanimous vote earlier this month, and observers say the bill now will be sent to Gov. John Hoeven, a Republican.

If Hoeven signs the bill, the bill will become law Aug. 1, observers say.

S.B. 2268 resembles amendments to the Viatical Settlement model act now being developed by the National Association of Insurance Commissioners, Kansas City, Mo.

Bill provisions aimed at curbing the “investor-owned life insurance” market would require most consumers to hold life policies for at least 2 years before selling the policies, and they would require consumers who use “encumbered assets” to pay for policies to hold the policies for at least 5 years before selling the policies.

The bill was supported by North Dakota Insurance Commissioner Jim Poolman who also played a key role in developing the current NAIC Viatical Settlements update.