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House approves bill allowing terminally ill policyholders to sell life‑insurance proceeds after heated debate over protections
Summary
House Bill 69, permitting viatical settlements (sale of life‑insurance proceeds by terminally ill policyholders), passed the House after sponsors argued it preserves dignity and opponents raised concerns about licensing and consumer protections.
Representative Suazo introduced House Bill 69 to allow terminally ill policyholders to sell life‑insurance policies to viatical settlement companies. The sponsor framed the bill as a property‑rights and humanitarian measure that gives patients immediate resources to pay medical bills and improve quality of life. “This legislation would allow the terminally ill person to live healthier, longer lives with their own resources,” the sponsor said on the floor.
Floor questioners pressed on several safeguards: who may purchase policies, protections for insured people if the owner is not the insured, how purchase prices are determined, and whether licensing or regulation is necessary to prevent abuse. Representative Reber and Representative Stevens warned about the absence of licensing, the need to protect insured parties when the owner is not the insured, and the risk that benefits intended for families might instead go to third parties. Stevens noted the difference between accelerated benefit provisions from insurers and third‑party viatical settlements, arguing the latter could divert remaining policy assets away from family members.
Supporters said life expectancy and negotiation determine the price and that market competition would benefit sellers. The sponsor yielded to an industry representative (Tom Day of the National Viatical Association) to explain pricing practices and life‑expectancy factors. The sponsor also said the industry had developed standards and that, in his view, licensing was unnecessary.
After debate the previous question was called and the House recorded a vote. The reading clerk announced House Bill 69 received 62 affirmative and 6 negative votes and the measure was referred to the Senate.
The floor record shows both substantive policy arguments and procedural resolutions, and multiple members asked for amendments or recommended alternative senate language that included licensing provisions.
