Juneau -- The Alaska Senate Monday unanimously passed House Bill 190, sponsored by the House Labor and Commerce Committee. HB 190 protects 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 existing 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 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.

"HB 190 will allow this form of investment to occur in Alaska with consumer protection in place," said Representative Norman Rokeberg (R-Anchorage), Chair of the House Labor and Commerce Committee. "This bill allows the Division of Banking, Securities,and Corporations to regulate the sales of these investment contracts and the Division of Insurance to regulate the viatical settlement providers that deal with exisiing life insurance policies and the insured individuals."

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

Attachment:

• Sponsor Statement