An Act To Provide Consumer Disclosures and Protect Consumer Options in Life Insurance
Maine Legislature, Session 124, LD 1063
Committee: Insurance and Financial Services
Sponsors: SULLIVAN
Amends: 24-A MRSA §6808-A

MAINE STATE LEGISLATURE 
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124th MAINE LEGISLATU 
Legislative Document 
No. 1063 
In Senate, March 17, 2009 
An Act To Provide Consumer Disclosures and Protect Consumer 
Options in Life Insurance 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Senator SULLIVAN of York. 
Printed on recycled paper 
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JOY 1. O'BRIEN 
Secretary of the Senate 
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Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24-A MRSA §6808-A, sub-§4 is enacted to read: 
4. Life insurer disclosure .. With respect to each policy issued by an insurance 
company, the insurance company shall send written notice to the owner of an individual 
life insurance policy or a certificate under a group life insurance policy that a settlement 
contract is an available alternative transaction for the owner when the insured person 
under the policy is 60 years of age or older or is mown to be terminally ill or chronically 
ill and: 
A. A life insurance company receives from the owner a request to surrender, in 
whole or in part, an individual life insurance policy or a certificate under a group life 
insurance policy; 
B. 
A life insurance company receives from the owner a request to receive an 
accelerated death benefit under an individual life insurance policy or a certificate 
under a group life insurance policy; 
C. A life insurance company receives from the owner a request to collaterally assign 
an individual life insurance policy or a certificate under a group life insurance policy 
as security for a loan; or 
D. A life insurance company sends to the owner a notice of lapse of an individual 
life msurance policy ora certificate under a group life insurance policy. 
An insurance company shall send notice under this subsection at any other time the 
superintendent may require by rule. 
Sec. 2. 24-A MRS A §6812, sub-§6 is enacted to read: 
6. Unfair practices. An insurer violates this chapter if the insurer: 
A. 
Prohibits, restricts, limits or impairs a' settlement producer from lawfully 
negotiating a settlement contract on behalf of a viator, aiding and assisting a viator or 
prospective viator with a settlement contract or otherwise participating in a settlement 
transaction under this chapter; . 
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B. Engages in or pemuts any discrimination between individuals of the same class, 
. same policy amount and equal expectation of life in the rates charged for any life 
insurance policy or annuity contract based upon an individual's having entered into a 
settlement' contract or being insured under a viaticated policy; 
C. Makes a false or misleading statement as to the business of a settlement contract· 
or financing premium due for a policy or to a policy owner or insured for the purpose 
of inducing or intending to induce the policy owner or insured not to enter into a 
settlement contract; or' 
D. 
Engages in a transaction, act, practice or course of business or dealing that 
restricts, limits or impairs in any way the lawful transfer of ownership, 'change of 
beneficiary or assignment of a policy. 
Page I - 124LRI097(OI)-1 
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SUMMARY 
This bill provides disclosure to certain owners of life insurance policies from the 
insurance company of the availability of viatical settlement contracts. 
The bill also describes what constitutes violation of the Viatical and Life Settlements' 
Act by an insurer.