05 LC
25 3945ER
House
Bill 443
By:
Representatives Smith of the
113th,
Harbin of the
118th,
Reece of the
27th,
Sheldon of the
105th,
and Hembree of the
67th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 33-24-3 of the Official Code of Georgia Annotated, relating
to insurable interests in personal insurance, so as to provide for additional
insurable interests of certain entities in the lives of insureds under certain
conditions; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 33-24-3 of the Official Code of Georgia Annotated, relating to insurable
interests in personal insurance, is amended by adding a new subsection to read
as follows:
"(g)
In addition to those cases provided for elsewhere in this Code section, any
trust, business trust, partnership, corporation, limited liability company, or
similar entity shall have an insurable interest in the life of an insured
if:
(1)
The entity is approved in writing by the insured as the beneficiary in, and
owner of, the combination of:
(A)
A life insurance policy on the life of the insured; and
(B)
An annuity contract or other insurance or investment product providing cash flow
during the life of the insured;
(2)
The entity is formed for the purpose, in part, of generating funds for the
benefit of one or more organizations that meet the requirements of Section
501(c)(3) of the Internal Revenue Code of 1986 that are, prior to the purchase
of the life insurance policy, designated in writing by the consenting
insured;
(3)
The entity is approved in writing by each benefited organization referred to in
paragraph (2) of this subsection;
(4)
Each benefited organization referred to in paragraph (2) of this subsection owns
or will own an interest in the entity;
(5)
The payments to the entity under the annuity contract or other insurance or
investment product must be reasonably anticipated to fund the premiums on the
life insurance policy for the second and succeeding years;
(6)
Either:
(A)
Each benefited organization referred to in paragraph (2) of this subsection
provides an affidavit to the entity stating that the organization has been in
existence for at least three years and has assets of at least $5 million; or
(B)
The consenting insured provides an affidavit to the entity stating that the
insured is an accredited investor as defined in Rule 501 of Regulation D under
the Securities Act of 1933, as amended;
(7)
The consenting insured provides an affidavit to the entity stating that neither
the consenting insured nor any person closely related by blood or by law to the
consenting insured nor any entity controlled by the consenting insured or any
person closely related by blood or by law to the consenting insured other than a
organization as defined under Sections 501(c)(3) of the Internal Revenue Code of
1986 received any monetary remuneration or other consideration whatsoever in
connection with the
insured́s
consent to purchase the life insurance policy, the annuity contract, or other
insurance or investment product; and
(8)
Prior to the ownership or purchase of the life insurance policy on the
consenting insured, each consenting insured and benefited organization referred
to in paragraph (2) of this subsection is provided a written description of the
minimum percentage or amount of the life insurance proceeds that is reasonably
anticipated to be paid to the benefited organization.
An
entity meeting the requirements of this subsection has an insurable interest in
the life of the insured whether the entity originally purchased the insurance or
the insurance is later transferred to the entity by the insured or another
person."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.