Final
BILL SUMMARY for SB05-107

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes:
Action Taken:
Moved amendment L.005 (Attachment A). The amendme
Moved that SB05-107 be referred, as amended, to th
Moved the M. Carroll amendment which amends the re		TIE
PASS
PASS



02:11 PM -- Senate Bill 05-107

Representative Jahn presented SB05-107 to the committee. The bill proposes to regulate activities involving agreements to assign, transfer, sell, or bequest the death benefit or ownership of a life insurance policy in exchange for compensation less than the expected death benefit. The bill adopts the National Association of Insurance Commissioners (NAIC) model legislation. Representative Jahn responded to questions from the committee.

02:21 PM -- Margy Christiansen, representing the Colorado Association of Insurance and Financial Advisors, testified in opposition to the bill. Ms. Christiansen testified that her organization supports the NAIC model legislation but does not support the provisions of the bill that are different. Ms. Christiansen stated that her organization feels that viatical settlement brokers should be licensed under one specific license rather than dually licensed as a securities broker and an insurance agent. Ms. Christiansen responded to questions from the committee.

02:59 PM -- Michael Freedman, representing the Life Settlement Institute, testified in favor of the bill. Mr. Freedman's organization represents viatical providers. Mr. Freedman explained that life insurance policy holders' needs change over time. Viatical settlements provide for the option of an accelerated benefit. Mr. Freedman stated that he wished to clarify that the NAIC model simply requires a license and that an insurance broker's license is sufficient. Mr. Freedman responded to questions from the committee.

03:17 PM -- Jim Hall, representing the American Council of Life Insurers, testified in favor of the bill if it is amended by L.005 (Attachment A). The intent of the amendment is to clarify liability in the relationship between a life insurance producer and the viatical settlement provider.

03:21 PM -- Julie Hoerner, representing the Division of Insurance, testified in favor of the bill. Ms. Hoerner testified that the bill provides necessary regulation of the industry. Ms. Hoerner addressed the single license issue by stating that the division prefers single licensure for ease of administration.

03:32 PM -- Representative Borodkin moved amendment L.005 (Attachment A), and the motion was seconded by Representative Coleman. Representatives Borodkin and Coleman withdrew the amendment in favor of an amendment proposed by Representative M. Carroll..
BILL:SB05-107
TIME: 03:35:50 PM
MOVED:Carroll M.
MOTION:Moved the M. Carroll amendment which amends the reengrossed bill on page 13, line 23, by striking "may" and substituting "shall" and on line 25 after the word "finds" insert "after compliance with subsection (3) of this section". The amendment passed 11-2.
SECONDED:Paccione
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
No
Knoedler
No
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Yes
Cerbo
Yes
Marshall
Yes
Not Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:SB05-107
TIME: 03:41:37 PM
MOVED:Marshall
MOTION:Moved that SB05-107 be referred, as amended, to the House Committee on Appropriations with a favorable recommendation. The motion passed 8-5.
SECONDED:Borodkin
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
No
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
No
Massey
No
McCluskey
Yes
Paccione
Yes
White
Yes
Cerbo
No
Marshall
Yes
Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS