The District of Columbia may begin regulating the secondary market for life insurance under a bill introduced earlier this month.
The legislation, known as the Viatical Settlements Licensing Act of 2007, is designed to “regulate persons and entities, other than the owners of life insurance policies or certificates” that offer, solicit, negotiate, procure, or put into effect Viatical contracts in the District, according to the bill.
Although the District’s City Council has adjourned for the summer and no hearings are planned on the bill, it has the support of the Life Insurance Settlement Association, Orlando, Fla., which praised the measure as a step forward for the industry and the District.
“This bill is reflective of the District’s growing reputation as one of the nation’s leading financial services regulators,” said Doug Head, LISA executive director. “As secondary market companies continue to be attracted to the region, this landmark legislation will provide the District with the necessary tools to foster competition while protecting consumers.”
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The bill would require those wishing to conduct life settlements to obtain a license within 30 days of beginning to act in that capacity, although it would allow anyone certified as an attorney, certified public accountant or financial planner recognized by a national entity to negotiate a viatical agreement on behalf of the viator without obtaining a license.