A life settlement bill in Massachusetts has been sent back to the state legislature’s Joint Committee on Financial Services, according to a spokesman for the bill’s sponsor, Rep. Ronald Mariano (D.).
The bill, H 984, had passed the conference committee last week but was then failed to meet a deadline for submission to the clerk of the House of Representatives.
The bill is expected to be reapproved by the committee soon, then submitted to the state House Ways and Means Committee for consideration, according to the spokesman.
Among other provisions, the bill states that “an individual has an unlimited insurable interest in his or her own life, health, and bodily safety” and may legally take out a life insurance policy payable to whomever he or she chooses, whether or not the named beneficiary has an insurable interest in the policy owner’s life.
H 984, based on a model act for regulating life settlements from the National Conference of Insurance Legislators, Troy, N.Y., would amend an existing state law regulating viatical settlements.