SB 565, a new Oklahoma state law, involves viatical settlement providers and brokers. The new bill requires a surety bond of $50,000 issued from a surety licensed in the state from viatical settlement providers and brokers. SB 565 also states that securities, a certificate of deposit, cash or an errors and omissions insurance policy are also satisfactory. Any of these financial options listed above may be used in combination to meet the new requirements. When SB 565 was first established, it did not impact the bonding industry. The bonding requirements were added after eleven hours of the conference committee. Initially, SB 1980 would have enacted the NAIC model law for viatical settlement providers and brokers, which requires a $250,000 bond. The bill was amended; SB 1980 gave rulemaking ability to the Insurance Commissioner for the bond requirements and also authorizes them to decide on the amount. Now that SB 565 and SB 1980 have been enacted with contradictory bond requirements, SFAA will make contact with the Insurance Commissioner to request illumination and clarification.
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.