An Act To Govern and Regulate Life Settlements LR2724(02)
Maine Legislature, Session 121, LD 1907
Committee Amendment CA_A_H796 (House)

COMMITTEE AMENDMENT ,,4, to H.P. 1411, L.D. 1907, Bill, "An 
Act To Govern and Regulate Life Settlements" 
Amend 
the bill 
in 
section 
in that part 
"§6802-A." in subsection 1 in the last line (page 1, 
L.D.) by striking out the following: "viatical or life" 
designated 
line 46 in 
Further amend the bill in section 5 in that part designated 
"§6802-A." by striking out all of subsection 11 and inserting in 
its place the fOllowing: 
'11. Settlement provider. 
"Settlement provider" means 
a 
person other than the viator that enters into or effectuates a 
settlement contract. 
"Settlement provider" does not include: 
A. 
A supervised lender, as defined in Title 9-A, section 
1-301, subsection 39, that takes an assignment of a life 
insurance policy as collateral for a loan: 
B. 
The 
issuer 
of 
a 
life 
insurance 
policy 
providing 
accelerated benefits under section 2555 and pursuant to the 
contract: 
C. 
An 
authorized 
or 
eligible 
insurer 
that 
provides 
stop-loss 
coverage 
to 
a 
settlement provider, 
purchaser, 
financing entity, special purpose entity or related provider 
trust: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 1411, L.D. 1907 
D. 
A viator's friend or family member or other natural 
person who enters into no more than one agreement in a 
calendar year for the assignment, transfer, sale, devise or 
beguest of a life insurance policy for any value less than 
the expected death benefit; 
E. 
A financing entity; 
F. 
A special purpose entity: 
G. 
A related provider trust: or 
H. 
An accredited investor or gualified institutional buyer 
as defined respectively in Regulation D, Rule 501 and Rule 
144A of the Federal Securities Act of 1933, as amended, and 
who acguires a policy from a settlement provider.' 
Further amend the bill in section 10 in that part designated 
"§6807." in subsection 4 in the first paragraph by striking out 
all of the last underlined sentence (page 16, lines 1 and 2 in 
L.D.) 
and inserting in its place the following: 
'A cause of 
action 
may 
not 
arise 
against 
any 
person 
for 
the 
act 
of 
communicating 
or 
delivering 
information 
or 
data 
to 
the 
superintendent or the superintendent's authorized representative 
or examiner pursuant to an examination made under this chapter if 
the act of communication or delivery was performed in good faith 
and without fraudulent intent or the intent to deceive. 
Thi s 
subsection does not abrogate or modify in any way any common law 
or statutory privilege or immunity heretofore enjoyed by the 
superintendent, the superintendent's authorized representatives 
or any examiner appointed by the superintendent.' 
Further amend the bill in section 13 in that part designated 
"§6810." in subsection 1 in the 3rd line (page 27, line 27 in 
L.D.) by striking out the following: "viatical" 
Further amend the bill in section 17 in that part designated 
"§6818." in subsection 5 by striking out all of paragraph C. 
Further amend the bill in section 17 in that part designated 
"§6818." in subsection 5 by relettering the paragraphs to read 
consecutively. 
Further amend the bill by inserting after section 17 the 
following: 
'Sec. 18. Bureau of Insurance report. 
The Superintendent of 
Insurance 
shall prepare 
a 
report that addresses 
the 
market 
conditions for life settlements in this State and identifies any 
problem areas or issues within the market for life settlements, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT 
to H.P. 1411, L.D. 1907 
including any 
consumer complaints received by the Bureau of 
Insurance. 
The superintendent shall submit the report no later 
than February 1, 
2006 to the joint standing committee of the 
Legislature 
having 
jurisdiction over 
insurance 
and 
financial 
services matters. 
The committee may report out legislation to 
the Second Regular Session of the l22nd Legislature to make any 
changes to the laws regulating life settlements.' 
SUMMARY 
This amendment makes the following changes to the bill. 
1. 
It deletes language referring to an award of attorney's 
fees and costs to a prevailing party in a tort action arising out 
of activities related to the regulation of viatical or life 
settlements. 
2. 
It makes 
a 
change 
to the definition of settlement 
provider to correct a reference to supervised lenders and to 
delete a reference to a settlement purchaser. 
3. 
It corrects 
inadvertent references to 
a viatical 
settlement. 
4. 
It requires the Bureau of Insurance to submit a report 
by February 1, 
2006 to the joint standing committee of the 
Legislature having jurisdiction over 
insurance 
and financial 
services matters on the market conditions for life settlements 
and any problems related to the regulation of life settlements. 
FISCAL :vnr HEQURED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/22/04 ;;:r!:?ac:.. 
Office of Fiscal and Program Review 
LD 1907 
An Act To Govern and Regulate Life Settlements 
LR2724(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Minor cost increase - General Fund 
Minor cost increase - Other Special Revenue Funds 
Minor revenue increase - General Fund 
Minor revenue increase - Other Special Revenue Funds 
Correctional and Judicial Impact Statements: 
Increases the number of civil suits 
Fiscal Detail and Notes 
Additional costs to the Department of Professional and Financial Regulation in implementing this legislation can be 
absorbed utilizing existing budgetary resources and the additional resources provided in the legislation. 
LR2724(2) - Fiscal Note - Page 1 of 1