Sec. 38a-465m. Regulations. Imposition of bond or other mechanism as proof of financial accountability. Conflict of laws.
Sec. 38a-465m. Regulations. Imposition of bond or other mechanism as proof
of financial accountability. Conflict of laws. (a) The commissioner may adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of
sections 38a-465 to 38a-465l, inclusive, and sections 38a-465n to 38a-465q, inclusive.
(b) Such regulations may establish standards for evaluating reasonableness of payments under life settlement contracts. Such regulations may include, but are not limited
to, the regulation of discount rates used to determine the amount paid in exchange for
assignment, transfer, sale, devise or bequest of a benefit under a life insurance policy.
(c) Such regulations may establish appropriate licensing requirements and standards for continued licensure for providers and brokers.
(d) The commissioner may require a bond or other mechanism for financial accountability for providers and brokers.
(e) Such regulations may adopt rules governing the relationship and responsibilities
of providers, brokers, insurers and their agents, pursuant to the requirements of this part.
(f) If there is more than one owner on a single policy and the owners are residents
of different states, the life settlement contract shall be governed by the law of the state
in which the owner having the largest percentage ownership resides or, if the owners
hold equal ownership, the state of residence of one owner agreed upon in writing by all
of the owners. In the event that equal owners fail to agree in writing upon a state of
residence for jurisdictional purposes, the law of the state of the insured shall govern.
(g) A provider in this state that enters into a life settlement contract with an owner
who is a resident of another state that has enacted statutes or adopted regulations governing life settlement contracts shall be governed in the effectuation of such life settlement
contract by the statutes and regulations of the owner's state of residence. If the state in
which the owner is a resident has not enacted statutes or regulations governing life
settlement contracts, the provider shall provide notice to the owner that neither state
regulates the transaction upon which the owner is entering, except that for transactions
in such states, the provider shall maintain all records required if the transactions were
executed in the owner's state of residence. The forms used in such states need not be
approved by the commissioner.
(h) If there is a conflict in the laws that apply to an owner and a provider in any
individual transaction, the laws of the state that apply to the owner shall take precedence
and the provider shall comply with those laws.
(P.A. 97-202, S. 16, 18; P.A. 99-145, S. 13, 23; P.A. 03-152, S. 9; P.A. 08-175, S. 14.)
History: P.A. 97-202 effective January 1, 1998; P.A. 99-145 deleted references to Secs. 38a-11(a) and 38a-816(19),
effective June 8, 1999; P.A. 03-152 designated existing provisions as Subsec. (a), added reference therein to Secs. 38a-465n to 38a-465q re regulations, and added Subsecs. (b) to (e), inclusive, re scope of regulations and re bond or other
mechanism for financial accountability; P.A. 08-175 deleted provisions re viatical settlement and made conforming changes
in Subsecs. (b) to (e) and added Subsecs. (f) to (h) re conflict of laws.