Juneau -- The Alaska House of Representatives Monday unanimously passed House Bill 190, legislation protecting Alaska investors from sales abuses that have appeared elsewhere in the country in connection with viatical settlement contracts.

Viatical settlement contracts are agreements by investors to purchase life insurance policies at a discount. Originally the viatical industry was limited to terminally ill people or those with life-threatening illnesses, but over the past decade it has rapidly expanded to those who simply want to sell their life insurance policies. Investors began to face unexpected problems as many of those policies did not mature, returns were less than expected or even negative, and sales abuses began to surface.

"Good public policy requires that we move now to protect Alaskan investors from sales abuses that have occurred in other states," said Representative Norman Rokeberg (R-Anchorage), Chair of the House Labor and Commerce Committee, which sponsored HB 190. "This bill adds viatical settlements to the list of items covered by the Division of Insurance before sales contracts are signed, and to the Division of Banking, Securities, and Corporations at the time the provider begins to market the investment.

In 1998 over $1.5 million of viatical contracts were sold in Alaska.

"House Bill 190 will allow this form of investment to occur in Alaska with consumer protection in place," said Rokeberg.

Broadcasters note: Audio comments are available on the Majority Actuality line, 1-800-478-6540
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