Tennessee Viatical Settlement Provider Bond

TennesseeThe State of Tennessee has implemented new legislation regarding viatical settlement providers. The new law is named HB 2296 and requires viatical settlement brokers and providers to attain some confirmation of financial responsibility; a surety bond is authorized for this. The surety bond must be in a quantity of at least $250,000. HB 2296 authorizes a deposit of cash, certificates of deposit, or securities in place of or in combination with the surety bond as satisfactory forms of evidence of financial responsibility. The new law also authorizes the broker to present proof that financial instruments abiding by the new law’s requirements have been submitted with a state where the applicant is licensed. HB 2296 became active on August 17th, 2009.