By: Trevor Thomas

The Wisconsin Senate Tuesday unanimously passed a bill requiring life insurance policies to be in force at least 5 years before consumers can sell the policies through a settlement. The bill, S.B. 513, would change an older law that has permitted consumers to sell policies after holding the policies for 2 years.

Commentary by Life Policy Group:

Evidence that consumer choice is restricted again because the regulators and the life offices will not properly monitor the applications for life insurance and act accordingly.

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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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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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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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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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By: Trevor Thomas

The head of the U.S. Securities and Exchange Commission has set up an internal task force to look into the life settlement business.

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By: Trevor Thomas

A U.S. Securities and Exchange Commission task force has been talking to a number of people who are active in the life settlement industry.

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A new law in Maine requires life insurance companies to advise senior life insurance policy owners that life insurance settlements are an alternative to surrendering their policy or allowing it to lapse.

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Veris Settlement Partners Inc. is working with a lead-generating firm to offer a new life insurance settlement program aimed at owners of small policies.

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