Life Settlement License

Idaho Gov. C.L. “Butch” Otter signed legislation April 1 that will impose rules to regulate the life settlement market for the first time in the state.

The new law takes effect July 1.

HB 75 contains provisions from two competing model laws drafted by the National Conference of Insurance Legislators (NCOIL) and the National Association of Insurance Commissioners (NAIC), but leans more heavily toward NCOIL’s model, said Shad Priest, deputy director of the Idaho Insurance Department.

Before the bill passed, the state only had an insurable-interest law, he said.

Priest said the bill outlaws stranger-originated life insurance (STOLI). Read the rest of this entry »

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.” Read the rest of this entry »

New York has been one of the major states pushing for life settlement regulation. In recent news, New York insurance regulator Eric Dinallo has proposted legislation. We are waiting to see a full overview of what will be proposed.

Read more details here: New York Life Settlement Regulation

We will continue to follow this developing story.

In the mean time, feel free to contact a New York Life Settlement Professional.