OIR Holds Workshop On Proposed Rule Regarding Disclosures To Viators

On September 11, 2007, a representative from this office attended a workshop held by the Office of Insurance Regulation (“OIR”) on Proposed Rule 69O-204.101 regarding disclosures to viators under viatical settlement contracts.

Assistant General Counsel, Bob Prentiss, presided over the meeting. The purpose of this Rule is to establish a thorough disclosure of funds by viatical settlement providers to viators.

After brief introductory remarks by Mr. Prentiss, a representative from the Life Insurance Settlement Association provided oral comments on the Proposed Rule. He noted that some of his members support the Proposed Rule as written, while others generally support the concept, but have concerns with the language as currently drafted.

The major area of contention was that the Rule seems to require viatical settlement providers to have knowledge of, and provide details about, all brokers who receive compensation, along with how much compensation they receive from a viatical settlement provider. Many times, providers use and provide compensation to agents or sub-brokers about whom they do not have knowledge. Therefore, the Proposed Rule requires providers to report information that they cannot acquire.

At the conclusion of the workshop, Mr. Prentiss noted that the Proposed Rule will go before the Financial Services Commission to be approved for publication. Then, there will be a public hearing on the Proposed Rule if one is requested. Also, the record for this workshop will remain open for ten (10) days to allow interested parties to submit written comments. The comments may be submitted to Bernie Stoffel via e-mail at Bernie.Stoffel@fldfs.com.

For your review, we have included a copy of the Proposed Rule with this e-mail. Please be advised that the above information is intended to be a general summary of the discussion that took place during today’s workshop and it should not be relied upon in making individual business decisions.

 

Should you have any questions or comments regarding this information, please feel free to contact this office.