Maine Life Settlement Law

After news the last couple weeks ago about Maine regulation, it looks like some clarification was needed.

A bill has been proposed in Maine that would clarify a state law requiring life insurance companies to notify policy holders of their option to sell their policy rather than let it lapse.

The new bill, LD 1523,  seeks to amend PL 2009, c. 376, which was signed into law in June by Gov. John Baldacci. That law requires life insurers to inform individuals that there are alternatives, including life settlements, to surrendering their policy or allowing it to lapse.

The new legislation would clarify that c. 376 applies to policies with death benefits of at least $100,000, where the policy owner is at least 60 years old or is terminally or chronically ill.

The bill, sponsored by Representative Charles Priest (D.), has been referred to the state House Committee on Insurance and Financial Services.