Sec. 5. 24-A MRSA §6802-A is enacted to read:

§6802-A.__Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Advertising.__"Advertising" means any written, electronic or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the Internet or a similar communications medium, including film strips, motion pictures and videos, published, disseminated, circulated or placed before the public, directly or indirectly, for the purpose of creating an interest in or inducing a person to sell a life insurance policy pursuant to a settlement contract.

2.__Business of__settlements.__"Business of settlements" means any activity involved in, but not limited to, the offering, solicitation, negotiation, procurement, effectuation, purchasing,__ financing, monitoring, tracking, underwriting, selling, transferring, assigning, pledging, hypothecating or in any other manner engaging in the business of settlement contracts.

3.__Chronically ill.__"Chronically ill" means:

A.__Being unable to perform at least 2 activities of daily living, including, but not limited to, eating, moving from one place to another, bathing, dressing, voiding the bladder, eliminating the bowel or maintaining continence;

B.__Requiring substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment; or

C.__Having a level of disability similar to that described in paragraph A, as determined by the United States Secretary of Health and Human Services.

4.__Financing entity.__"Financing entity" means an underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a settlement provider, credit enhancer or any entity that has a direct ownership in a policy or certificate that is the subject of a settlement contract: