National Underwriter Life and Health

By: Trevor Thomas

A life settlement think tank is defending the value of the life settlement securitization concept.

The American Council of Life Insurers, Washington, asked Feb. 3 for policymakers to ban the securitization of life insurance policies sold in the secondary market. Packaging pools of life settlement transactions to back securities encourages stranger-originated life insurance and other forms of fraud, the ACLI says.

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National Underwriter Life and Health

By: Trevor Thomas

Several life settlement organizations have reacted strongly to the American Council of Life Insurers’ recent statement calling for a ban on the securitization of life settlements.

“Once again. ACLI has chosen to mix apples and oranges when condemning the life settlement market,” said Jack Kelly, director of government affairs for the Institutional Life Markets Association, Washington. He was responding to a policy statement from the ACLI, Washington, holding that the securitizations of life insurance settlements should be prohibited by legislation and regulation.

Commentary by Life Policy Group:

It’s good to hear the comments of Jack Kelly.  Let’s hope that there are more people in government affairs who will stand up and be counted.

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National Underwriter Life and Health

A bill has been proposed in Maine that would clarify a state law requiring life insurance companies to notify policy holders of their option to sell their policy rather than let it lapse.

The new bill, LD 1523,  seeks to amend PL 2009, c. 376, which was signed into law in June by Gov. John Baldacci. That law requires life insurers to inform individuals that there are alternatives, including life settlements, to surrendering their policy or allowing it to lapse.

Commentary by Life Policy Group:
This is good news. Let’s hope that more States take this position.

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National Underwriter Life and Health

By: Trevor Thomas

One of the myths and misconceptions surrounding life insurance settlements is that they take advantage of the terminally ill and elderly, said William Scott Page, chief executive officer of Wm. Page & Associates Inc., Atlanta, at a recent webinar.

Commentary by Life Policy Group:
As Boris Ziser infers, selling a policy may well be a better option for a senior than taking out a reverse mortgage – at least they don’t lose their house!

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