LB 853, a new Nebraska state law, was enacted concerning the proof of financial responsibility from viatical settlement providers. LB 853 requires viatical settlement providers and brokers to supply evidence of financial accountability, which could be in the form of a bond. The surety bond must be $250,000 and be issued by a state authorized insurance company. The surety bonds obtained must be in the favor of the state and authorize the Director of Insurance to make recoveries on behalf of any individual in the state who suffered damages as a result of a flawed act, conviction of fraud, or conviction of unfair procedures performed by a viatical settlement provider or broker. Alternative forms of such evidence that will be acknowledged include any combination of proof of financial responsibility, certificates of deposit, or cash. LB 853 is based on recent model legislation from the National Association of Insurance Commissioners.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.