Secondary Life Insurance Market
Public Hearing
The Florida Office of Insurance Regulation (Office) has been directed by the Florida Legislature in Chapter 2013-40, §6, at 316, Laws of Florida to
"review Florida law and regulations to determine whether there are adequate protections for purchasers of life insurance policies in the secondary
life insurance market to ensure that this market continues to exist for Florida seniors."
The Florida Administrative Code defines the "secondary market" as the assignment, transfer, sale, devise, or bequest of the death benefit or ownership of
all or a portion of a viaticated life insurance policy or viaticated certificate of insurance. A viaticated life insurance policy is a life insurance
policy that has been sold by the initial policyholder in exchange for compensation, usually for more than the policy's cash surrender value. All contracts
for the sale of a life insurance policy by the policyholder to a third party in exchange for compensation are considered to be a "viatical settlement
contract" under Florida law, which does not make a distinction in the term used based on whether the owner of the policy is terminally ill when the policy
is sold.
In accordance with this directive, the Office conducted a public hearing on Friday, October 25, 2013 at 10:00 a.m. in the
Knott Building, Room 412 - Capitol Complex, 404 South Monroe Street, Tallahassee, FL 32399.
The general public can view a video recorded version of the hearing at
http://thefloridachannel.org/video/102513-office-of-insurance-regulation-hearing-on-secondary-life-market/".
Submitted Materials/Comments
Input from investors in the secondary life insurance market, insurers, and other interested parties was received at the public hearing. The deadline to
submit materials or comments for the Office to consider including in the report was October 30, 2013.
Listed below is the information provided to the Office: