The Wisconsin Assembly has passed a bill, S.B. 513, that would require that a life insurance policy be in force at least 5 years before it could be sold in the secondary market.
Existing law in the state requires that a policy be in force only 2 years before it could be sold in a life insurance settlement.
The bill was sent to Gov. Jim Doyle, D, who has not yet acted on the legislation, according to Eileen Mallow, Wisconsin’s assistant deputy commissioner of insurance.
The state Senate approved S.B. 513 in February.
The bill would allow exceptions to the 5-year rule, such as for individuals who have a life-threatening medical condition or who have divorced.
The bill, which was sponsored by Sen. Robert Wirch, D-Pleasant Prairie, Wis., chair of the Senate Consumer Protection Committee, also would eliminate minimum payment requirements tied to the life expectancy of an insured, which had been required under the old law.