
Wisconsin Life Settlement Bill
Senate Bill 513 is aimed at helping prevent Life Settlement Fraud in Wisconsin.
Currently the industry is unregulated in Wisconsin, which opens the door for fraud and abusive sales practices. Not to say that all life settlements are fraudulent – they certainly are not. AARP members fall into the age category where abuse typically occurs, which is why AARP is supporting this bill.
This bill will require full disclosure from life settlement providers, as well providing a licensing regime with continuing education requirements for brokers and consequences for defrauding consumers.
Full bill can be reviewed at:
www.legis.state.wi.us/2009/data/SB-513.pdf
Front paragraph:
Under current law, the owner of a life insurance policy that insures a person who has a catastrophic or life?threatening illness or condition, including AIDS or HIV infection, may sell the policy for an amount that is less than the expected death benefit under the policy in a transaction known as a viatical settlement. The person that makes the payment under the viatical settlement is known as a viatical settlement provider (provider) and must be licensed by the commissioner of insurance (commissioner). A person who, for a fee, offers or attempts to negotiate a viatical settlement between the owner of a life insurance policy and one or more providers is known as a viatical settlement broker (broker) and must be licensed by the commissioner. The commissioner may revoke, suspend, or refuse to renew a provider’s or broker’s license if the licensee misrepresented information in the application; engaged in fraudulent or dishonest practices or is shown to be untrustworthy or incompetent to act as a provider or broker; has been convicted of a misdemeanor or felony involving fraud, deceit, or misrepresentation; violated Wisconsin law regarding viatical settlements; or if licensed as a provider, failed to meet the minimum settlement payment requirements or demonstrated a pattern of making unreasonable payments to policy owners. Every provider or broker must maintain records for all viatical settlements and make those records available to the commissioner for inspection.
More info:
Life Settlement License
Wisconsin Life Settlement
Wisconsin Life Settlements








