Georgia Life Settlement Regulation
Legislation regulating the life settlement market was approved by the Georgia House of Representatives yesterday and is on its way to the governor.
SB 61 previously was passed by the House Committee on Insurance Feb. 11 and the full Senate on Feb. 4.
The legislation, sponsored by Sen. Ralph Hudgens, essentially follows the model act drafted by the National Conference of Insurance Legislators (NCOIL), which allows policies to be settled after two years.
The bill contains some revisions, however, including a new definition of stranger-originated life insurance (STOLI). The bill defines STOLI as “a series of acts or a practice to initiate a life insurance policy for the benefit of a third-party investor who, at the time of policy origination, has no insurable interest in the insured.”
It deletes the word “plan” from the definition. Settlement representatives contend there’s nothing wrong with planning to sell a policy as long as there’s no agreement to do so at issuance.
