HB 222 is a new law that was introduced affecting life settlement providers in the state of Vermont. The new law requires life settlement providers and brokers to be licensed and acquire a surety bond or letter of credit in a quantity calculated by the yearly aggregate life settlement payments attributable to the licensee to policy owners within the State. Providers must satisfy the minimum surety bond amounts which are: a minimum of $50,000 for payments received totaling up to $1 million; at least $100,000 for payments spanning between $1,000,000.01 and $15 million; and at least $150,000 for sum payments of $15 million plus; and brokers must meet the minimum surety bond amount requirements of: at least $25,000 for payments totaling up to $2 million; at least $50,000 for sum payments ranging from $2,000,000.01 and $5 million; at least $75,000 for total payments spanning from $5,000,000.01 and $15 million; and at least $100,000 for total payments of $15,000,000.01 or greater.
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.