Members of the Kentucky state Senate voted Wednesday to pass a life settlement bill, House Bill 414, 38-0.
The Senate considered the bill under a streamlined “consent order” process.
Members of the state House approved the bill March 14 by a 91-0 vote.
State Rep. Robert Damron, D-Nicholasville, Ky., is the lead sponsor. Damron is a former president of the National Conference of Insurance Legislators.
The bill would let a consumer exchange a life insurance policy with a death benefit over $10,000 for a life settlement contract that would be used to pay for long-term care (LTC) services.
The life settlement provider would have to hold the proceeds from the settlement contract in an irrevocable state-insured or federally insured account for the benefit of the recipient of the LTC services.