HOUSE BILL No. 4661


     April 22, 1997, Introduced by Rep. Law and referred to the Committee on Insurance.


        A bill to amend 1996 PA 386, entitled

   "An act to regulate the sale and purchase of viatical settlement
   contracts; to prescribe the powers and duties of certain state
   agencies and officials; and to prescribe penalties,"

   by amending section 8 (MCL 550.528).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 8.  (1) The commissioner may issue an order prohibiting

 2    the provider from entering into a viatical settlement contract in

 3    this state if the commissioner finds any of the following:

 4         (a) The provider has been fraudulent or engaged in dishonest

 5    practices.

 6         (b) The provider demonstrates a pattern of unreasonable pay-

 7    ments to policy owners.

 8         (c) The provider has been convicted of a felony or any

 9    misdemeanor that involved criminal fraud.




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 1         (d) The provider has violated a provision of this act.

 2         (2) In addition to the order under subsection (1), the

 3    commissioner may order any of the following:

 4         (a) Payment of a civil fine of not more than $500.00 for

 5    each violation.

 6         (b) If the  person  PROVIDER knew or reasonably should have

 7    known that  he or she  THE PROVIDER was in violation of this act,

 8    the  commissioner may order the payment  REPAYMENT of all  death

 9     benefits and other proceeds  CONSIDERATION paid by OR ON BEHALF

10    OF a viator FOR A VIATICAL SETTLEMENT CONTRACT affected by the

11    violation and a civil fine of not more than $2,500.00 for each

12    violation.

13         (c) A cease and desist order.































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