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Panel recommends due pass for technical fix to life‑settlement producer renewal dates
Summary
The Industry and Business Committee recommended a due pass for SB 2092, an agency bill that standardizes renewal dates for life settlement producer licenses and clarifies how prorated initial licensing intervals are handled.
The Senate Industry and Business Committee recommended a due pass for Senate Bill 2092, a North Dakota Insurance Department bill to correct and standardize renewal dates for life settlement producers.
Janelle Mittelstaedt, division director for producer licensing at the Insurance Department, told the committee the measure is a housekeeping and consumer‑protection step that sets the renewal date for life settlement producers to April 30 to align with other license classes. The bill also clarifies how initial license terms are prorated so producers who obtain a license partway through a licensing year are not disadvantaged — for example, an initial license might yield a longer than 12‑month first term so the producer receives a comparable renewal cycle.
Mittelstaedt said North Dakota has a small life settlement market — approximately 15 life settlement companies and nine licensed producers — and that the department conducts vetting of applicants, including financial and legal review, before licensing to reduce fraud risk. Committee members asked whether transactions are typically lump‑sum purchases and whether there are tax implications; Mittelstaedt said some settlements can have tax consequences and that the department would consult its life actuary or other experts for specific tax questions.
Senator Kessel moved a due‑pass recommendation and Senator Klein seconded; the committee voted 5‑0 to recommend passage. The committee recorded no opposition testimony during the hearing.
