Life Insurance Settlement Association, 12 January 2018
Protections for insurance consumers continue to be a hot topic for 2018’s legislative session. Keeping with this trend, Rhode Island has introduced legislation (HB 7124) that would notify policyholders, under certain circumstances, that there are alternatives to the lapse or surrender of their life insurance policy. Among the alternatives listed is a life settlement. The bill was introduced yesterday and was referred to the House Corporations Committee.
LISA has worked closely with the bill’s primary sponsor, Representative Brian Patrick Kennedy, House Speaker Pro Tempore, both during last year’s session and through the holidays to ensure the best possible outcome for this bill. Representative Kennedy is excited to work on this legislation and deems it a high priority this session. It is anticipated that Senator Roger Picard will introduce a companion bill soon which will increase the odds for passage.
HB 7124 is based off NCOIL’s Life Insurance Consumer Disclosure Model Act that passed in 2010. Currently, six states (Kentucky, Maine, New Hampshire, Oregon, Washington, and Wisconsin) have consumer disclosure requirements, with Florida and California containing limited disclosure requirements.
This year’s bill is identical to last year’s bill, HB 5628, which passed the House and was placed on the Senate floor calendar for a final vote. Unfortunately, time was not on our side and the bill died with the adjournment of the 2017 session.
LISA is following this bill closely and will help usher it through to passage. Consumer disclosure continues to be a top priority of LISA’s legislative initiatives.
If you have any questions, please contact Michael Kreiter at firstname.lastname@example.org.