A New Hampshire law will restrict settlements of life insurance policies that have been in effect for less than 5 years.

New Hampshire Gov. John Lynch, D, has signed House Bill 660, a life settlement bill.

Insurers generally back provisions that limit life settlement deals for 5 years; life settlement providers tend to support provisions that limit deals for 2 years.

New Hampshire will make exceptions during the 5-year must-keep period for insureds who experience major life changes, such as the death of a spouse, a divorce, a chronic or terminal illness, or retirement.

New Hampshire will require life settlement providers to provide proof of financial responsibility by posting a surety bond, cash, a certificate of deposit or securities totaling $250,000.