State Bills Introduced
Week Ending February 1, 2008
Viaticals
Kentucky HB 348amends the Viatical Settlements Act to include changes made to the NCOIL Life Settlements Model Act that includes prohibiting the sale of a viatical policy for two years and adopting savings clause language which does not preempt, supersede, or limit any provision of any state securities law or rule.
Hawaii HB 3099/ Hawaii SB 3021amends the Viatical Settlements Act to include changes made to the NAIC Viatical Settlements Model Act that includes prohibiting the sale of a viatical policy for five years. The bill does not contain a savings clause.
Hawaii SB 3246amends the Viatical Settlements Act to include changes made to the NAIC Viatical Settlements Model Act that includes investment language but prohibits the sale of a viatical policy for two years vs. five years. The bill does not contain a savings clause.
Annuities
Missouri HB 1818amends the definition of security so that the sale of variable annuities will be regulated by the Secretary of State who has regulatory jurisdiction over the securities division.
Idaho HB 411amends the current law to adopt the NAIC Suitability in Annuity Transactions Model Regulationfor the sale of variable annuities for all consumers.
West Virginia HB 4249/SB 412authorizes the Insurance Commissioner to promulgate a legislative rule relating to NAIC Suitability in Annuity Transactions Model Regulation.
Uniform Securities Act
Missouri HB 1817makes minor technical changes to the Missouri USA.
Hedge Funds
New Mexico HB 413prohibits the state from investing in hedge funds.
Broker-Dealers/Investment Advisers
New Jersey AB 1964amends the New Jersey securities law regarding actions based on deceit and liability in the sale of securities or the business of giving investment advice, by shifting the burden of proof from the person who brought the action to the party against whom the action is brought.
Under current law, the person who bought the security or received the investment advice has the burden of proof that the seller or investment adviser knew of the untruth or omission and intended to deceive the buyer and that the buyer has suffered a financial detriment. This bill amends that law by requiring that, for any claims which are brought alleging such securities violations, the party against whom the action is brought sustains the burden of proof that they did not know, or in the exercise of reasonable care, could not have known, of the untruth or omission.
Financial Literacy
Iowa HB 2071requires school districts to establish a statewide core curriculum relating to financial literacy courses.
Mississippi SB 2319establishes financial literacy curricula in high schools.
Missouri HB 1874grants teacher certification to individuals meeting certain requirements who will teach in the subject matter of banking or personal finance.
New Mexico HB 420appropriates $124,000 from the general fund to the regulation and licensing department for expenditure in fiscal year 2009 for its securities division's financialliteracy education program.
New Jersey AB 1943establishes a pilot program in Department of Education to provide instruction in personal finance to high school seniors.
Rhode Island HB 7257mandatesfor specific penalties imposed for conviction of impersonation and identity fraud.
Credit Freeze
Arizona SB 1185 allows a consumer to request in writing to a consumer reporting agency that the consumer’s credit score be frozen and the agency shall not release the score without authorization from the consumer.
Missouri HB 1809specifies the procedures for a person to place a security freeze on his or her consumer report.
Information Privacy
Arizona SB 1145prohibits any person or entity to communicate an individual's social security number available to the general public.
New Jersey AB 1997provides for expungement of certain records of victims of identity theft.
New York SB 6738establishes a process for regulating the collecting, recording, and disclosing of confidential information by state employees.
Rhode Island HB 7157creates a new chapter regarding the safe destruction of documents containing personal information by business entities. Aggrieved consumers would have a civil action in superior court to recover actual damages. Further, the attorney general may bring suit against the business in violation if it is in the public interest. This act would exempt banks, financial institutions and certain other regulated institutions.
West Virginia SB 340requires unauthorized acquisition of data that compromises the security, confidentiality or integrity of personal information maintained by the data collector and requires notification to the consumer of any breach of consumer information security
Identity Theft
Hawaii SB 2803provides for recommendations of the December 2007 report of the Hawaii identity theft task force to protect the security of personal information collected and maintained by state and county government.
Mississippi HB 252establishes procedures for victims to have debt forgiven and credit reports purged from victims of identity theft.
Washington SB 6850establishes the financial fraud and identity theft crimes investigation and prosecution program.
Insurance
Hawaii SB 3022/HB3100establishes enhanced civil and administrative penalties for insurance violations committed against elders (62 years). That includes an administrative penalty up to $50,000 for each violation.
Kansas SB 439prohibits insurance agents from misleadingin fact or by implication the form and content of an advertisement of an insurance policy or annuity contract. The bill requires the advertisement to be complete and clear as to avoid deception.
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