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THE SENATE |
S.C.R. NO. |
44 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
S.D. 1 |
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STATE OF HAWAII |
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SENATE CONCURRENT
RESOLUTION
REQUESTING THE INSURANCE COMMISSIONER TO CONDUCT A FACT-FINDING AND FEASIBILITY STUDY ON THE VIABILITY OF USING ACCELERATED DEATH BENEFITS AND VIATICAL SETTLEMENTS AS A SOURCE OF FUNDING FOR LONG-TERM CARE NEEDS.
WHEREAS, the Legislature finds that although the cost of long-term care services is rising, more individuals have life insurance policies instead of private long-term care insurance; and
WHEREAS, the Hawaii Long-Term Care Commission finds that certain features of life insurance policies may assist policyholders in further protecting their families by providing funding for long-term care, sometimes referred to as "living benefits"; and
WHEREAS, the Hawaii Long-Term Care Commission finds that certain features of life insurance policies can assist policyholders in further protecting their families by providing funding for long-term care, sometimes referred to as "living benefits"; and
WHEREAS, accelerated death benefits, which are provisions in life insurance policies that allow for advance payment of some or all of the death proceeds, and viatical settlements, which are contractual agreements between a life insurance policyholder and a third party to provide cash to the policyholder at less than the full value of the policy's death benefits in exchange for the ownership of the policy, may be possible funding sources to pay for long-term care services; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2012, the House of Representatives concurring, that the Insurance Commissioner is requested to conduct a fact-finding and feasibility study that provides recommendations on the viability of using accelerated death benefits and viatical settlements as a source of funding for long-term care needs; and
BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to research, examine, and report on the following:
(1) The feasibility of using accelerated death benefits and viatical settlements as funding sources for long-term care;
(2) Statistical data regarding the number of life insurance policies in Hawaii that contain accelerated death benefits provisions;
(3) The percentage of life insurance policies in Hawaii that are converted to life settlements contracts;
(4) A review of the Hawaii Insurance Code to identify and recommend ways to eliminate unnecessary barriers, if any, to implementing viatical settlements; and
(5) Oversight policies and infrastructure that other states and organizations have developed and implemented to regulate and ensure legitimate viatical settlement transactions; and
BE IT FURTHER RESOLVED that the American Council of Life Insurers, the National Association of Insurance and Financial Advisors Hawaii, and life settlements brokers selling life settlement policies in Hawaii are requested to assist the Insurance Commissioner in conducting necessary studies and completing the report; and
BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to submit its findings and recommendations, including proposed legislation, if any, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2013; and
BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to assist the Insurance Commissioner in preparing its report including recommendations and proposed legislation, if any; provided that the Insurance Commissioner submits a draft of the report and any proposed legislation to the Legislative Reference Bureau no later than November 1, 2012; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Insurance Commissioner, Director of Health, American Council of Life Insurers, National Association of Insurance and Financial Advisors Hawaii, and Hawaii Long-Term Care Commission.
Kupuna Caucus; Viatical Settlements; Accelerated Death Benefits; Insurance Commissioner; Report