HB 1284 is a new bill that was introduced in North Dakota concerning life settlement providers. The new law applies the Model Life Settlements Act of the National Conference of Insurance Legislators. The new bill asks life settlement providers and brokers to be licensed and to acquire a surety bond, a deposit of cash, certificates of deposit, securities or any assortment of these. The surety bond or an alternative security must be $150,000. HB 1284 states that surety bonds must be issued by a state authorized insurer. The surety bond must permit the Insurance Commissioner to make recovery on behalf of any individual in the State suffering damages that as a result of the provider/broker’s flawed acts, failure to act, conviction of fraud, or conviction of deceitful practices. HB 1284 authorizes providers to present proof of financial instruments filed in one or more states in which they are licensed.
Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.