Page:United States Statutes at Large Volume 110 Part 3.djvu/337

 PUBLIC LAW 104-191—AUG. 21, 1996 110 STAT. 2067 (b) ISSUERS.— The amendments made by section 326 shall apply to actions taken after December 31, 1996. Subtitle D—Treatment of Accelerated Death Benefits SEC. 331. TREATMENT OF ACCELERATED DEATH BENEFITS BY RECIPIENT. (a) IN GENERAL. —Section 101 (relating to certain death benefits) is amended by adding at the end the following new subsection: " (g) TREATMENT OF CERTAIN ACCELERATED DEATH BENEFITS.— "(1) IN GENERAL. —For purposes of this section, the following amounts shall be treated as an amount paid by reason of the death of an insured: "(A) Any amount received under a life insurance contract on the life of an insured who is a terminally ill individual. "(B) Any amount received under a life insurance contract on the life of an insured who is a chronically ill individual. "(2) TREATMENT OF VIATICAL SETTLEMENTS.— "(A) IN GENERAL.— I f any portion of the death benefit under a life insurance contract on the life of an insured described in paragraph (1) is sold or assigned to a viatical settlement provider, the amount paid for the sale or assignment of such portion shall be treated as an amount paid under the life insurance contract by reason of the death of such insured. "(B) VIATICAL SETTLEMENT PROVIDER. — "(i) IN GENERAL.— The term Viatical settlement provider' means any person regularly engaged in the trade or business of purchasing, or taking assignments of, life insurance contracts on the lives of insureds described in paragraph (1) if— "(I) such person is licensed for such purposes (with respect to insureds described in the same subparagraph of paragraph (1) as the insured) in the State in which the insured resides, or "(II) in the case of an insured who resides in a State not requiring the licensing of such persons for such purposes with respect to such insured, such person meets the requirements of clause (ii) or (iii), whichever applies to such insured. "(ii) TERMINALLY ILL INSUREDS.— A person meets the requirements of this clause with respect to an insured who is a terminally ill individual if such person— "(I) meets the requirements of sections 8 and 9 of the Viatical Settlements Model Act of the National Association of Insurance Commissioners, and "(II) meets the requirements of the Model Regulations of the National Association of Insurance Commissioners (relating to standards for evaluation of reasonable pa3anents) in determining

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