Posted by The Policy Settlement Alliance on Fri, Sep 03, 2010 @ 08:52 AM
By David M. Epstein
NAIC viatical history began when it created the Viatical Settlements Model Regulation which gave individual states a model to follow in adopting legislation for the viatical and settlement process.
In December of 2006 and then again in May of 2007 the NAIC viatical model was amended to ensure consumer protections after STOLI or stranger oriented life insurance concerns emerged. The amendment to the NAIC viatical model placed a five year ban on all viatical and settlement transactions for any policy that resembled stranger oriented life insurance. Since that time STOLI policies have been banned in most state regulation all together.
The NAIC was founded in 1871 and has a primary goal in assisting individual states with founding legislation that provides financial stability of the insurance industry while protecting consumer rights and interests.
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Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Fri, Sep 03, 2010 @ 08:36 AM
by David M. Epstein
Nevada life settlement regulation has recently been amended due to concerns of STOLI or stranger oriented life insurance policies. STOLI policies have been the main topic of discussion among states across the country.
Stranger oriented policies are those in which a “stranger” offers to take a life insurance policy out on someone that they do not have an insurable interest in. The stranger then tries to sell the policy later in a settlement for a profit. Some states have recently passed legislation making STOLI policies illegal. Others like Nevada have taken the NAIC (National Association of Insurance Commissioners) lead and mandated a contestability period before a life insurance policy can be sold in a settlement. The majority of states have a two year contestability period. However Nevada life settlement regulators have strictly followed NAIC guidelines and made their contestability period five years.
In short, any person interested in selling their life insurance policy must wait a 5 year contestability period prior to entering into a Nevada life settlement.
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Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Fri, Sep 03, 2010 @ 08:29 AM
By David M. Epstein
On June 14, 2010 New Hampshire life settlement regulation took place in a bill that was signed into law and simply referred to as the “Act”. Specific things outlined in the Act are licensing for New Hampshire agents/brokers, life settlement providers, and disclosure statements regarding commissions for life settlement transactions. In addition the New Hampshire life settlement regulation included specific information regarding STOLI or stranger oriented life insurance policies.
STOLI policies are those that were purchased on the insured by a “stranger” that has no insurable interests. Some states have made STOLI policies illegal. To deal with current STOLI policies that are already in the mix, New Hampshire life settlement legislators have put forth the following regulations. Life settlements on policies that fit the STOLI criteria must wait a 5 year contestability period before investors can cash in on a death benefit. However, life settlement regulation in New Hampshire also states this only applies to STOLI cases and not those policies purchased for general insurable interests.
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Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Fri, Aug 27, 2010 @ 08:31 PM
By David M Epstein
Longevity quotes are a pertinent piece of the life settlement puzzle. When you complete the life settlement application you will be asked for information for any medical practitioner you have seen in the past 5 years. This information is used to obtain medical records. The medical records are then released to at least two life expectancy companies for evaluation. The life expectancy company compiles all of the information and calculates how long the insured is estimated to live. These estimates are referred to as longevity quotes.
Longevity quotes are what investors are looking at to determine whether or not the policy is a good investment for them. Typically investors prefer to have two longevity quotes to compare to one another. Some investors are looking for a quicker return on their investment than others, therefore target quotes can vary.
For more information and for a free life settlement evaluation, click the LIVEpdq link today!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Fri, Aug 27, 2010 @ 08:28 PM
By David M Epstein
Longevity risk is a matter investors should take seriously. All investments are associated with some level of risk. When investing in life settlements risk can be minimized if the investor understands the industry and is familiar with how to read life expectancy reports.
One agency attempting to reduce longevity risk for investors is the Life Insurance Settlement Association or LISA. LISA has recently announced its intent to work with top life expectancy companies to review industry guidelines and develop a universal table for life expectancy estimation. Life settlement investors and providers are expected to have access to the new tables in order to reduce unnecessary risk associated with drastically varying reports. LISA has also committed to educating investors and providers on industry practices and how to perceive the information contained in a life expectancy report.
This is very important to the life settlement industry. If investors suffer too much loss due to longevity risk the industry as a whole runs the risk of lost confidence and not enough funding.
For more information and for a free life settlement evaluation, click the LIVEpdq link today!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Fri, Aug 27, 2010 @ 08:27 PM
By David M Epstein
Louisiana life settlement law and regulation is governed by the Louisiana Department of Insurance. Like most states Louisiana has set forth specific guidelines that must be followed regarding licensing. Life settlement regulation in Louisiana requires both the Broker and Provider be properly licensed in that state.
The Broker in a Louisiana life settlement transaction represents the life insurance policy owner who is selling their policy. The Broker or an agent representing the broker assists the policy owner in preparing the necessary documentation for the settlement transaction then presents it to different life settlement providers. The Provider in a Louisiana life settlement transaction is the purchaser of the policy.
In order to obtain a Louisiana settlement license, the Broker and Provider must both complete the application provided by the Louisiana Department of Insurance. There is a $50.00 application fee.
For more information and for a free life settlement evaluation, click the LIVEpdq link today!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Fri, Aug 27, 2010 @ 08:25 PM
By David M Epstein
A Louisiana viatical settlement involves a policy where in the insured is terminally ill and is of any adult age. The policy can be sold in a viatical settlement for much higher return than the cash surrender value. The terminally ill policy holder typically uses these funds to cover increasing medical care costs and to provide quality of life until death.
In order to enter into a Louisiana viatical settlement, the insured or the broker representing the insured must provide written documentation from a licensed medical practitioner declaring the insured to be of sound mind and under no undue pressure to enter into a viatical settlement. In addition, under Louisiana law, the insured must provide documentation of terminal illness and verify that the illness was diagnosed after the purchase of the life insurance policy. Additionally in a Louisiana viatical settlement the insured has 20 days to inform the insurance policy provider that they intend to viaticate the policy.
For more guidelines on viatical settlements in the State of Louisiana and for a free life settlement evaluation, click the LIVEpdq link today!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Fri, Aug 27, 2010 @ 04:23 PM
By David M Epstein
Maryland life settlement regulation set the bar for other states long before such regulation swept the country. Back in 2004 the State of Maryland signed into law the right of consumers to realize fair market value for their unwanted and unneeded life insurance policies.
The Life Insurance Consumers Alliance applauded the Maryland life settlement regulation stating Maryland seniors will now be aware of the availability of the life settlement option. The State of Maryland has been recognized as one of the first States in the country to adopt legislation supporting consumers in settlements in addition to setting guidelines for the licensing of agents to assist in the Maryland life settlement transaction process.
The State of Maryland continues to be a leader in life settlement legislation and policy writing. The language in the Maryland law is often used and mimicked by other States still passing life settlement regulation today!
For more information and for a free life settlement evaluation, click the LIVEpdq link today!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Thu, Aug 19, 2010 @ 01:50 PM
By David M Epstein
The Life Insurance Settlement Association or LISA holds an annual life settlements conference and the one held this year was said to be the most influential event in life settlements. 2009 Marked unprecedented growth in the life settlements industry and along with that has come much change.
Several topics of discussion at the life settlements conference were potential federal oversight of life settlements, including regulation. Both Senator Jack Reed and Congressman Kendrick Meek spoke to their knowledge of life settlements as a financial institution and how it played into the federal government’s decisions about regulation of the industry.
Also a key topic of conversation was investor and consumer confidence and how to grow both. Speakers addressed supply and demand issues, market dynamics, and current steps the industry is taking to protect its interests in the financial market.
For more on what the LISA annual life settlements conference has to offer and a free life settlement evaluation, click the LIVEpdq link today!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by The Policy Settlement Alliance on Thu, Aug 19, 2010 @ 01:47 PM
By David M Epstein
Your life settlements company has certain responsibilities to the state and federal government and to you as a consumer.
Life settlements companies, specifically the broker/ broker agent is required to hold a life settlement license in their state of residence as well as the state in which the policy owner resides.
In addition to licensing, each state now has different requirements as to what constitutes a contestability period. Most states laws have a contestability period of 2 years; however some states have passed new legislation making contestability periods 3 years unless there are special circumstances. Each state has different requirements and it is the responsibility of the life settlements company to stay current on each state law.
Currently there is new legislation directly related to the consumer that mandates a life settlements company must disclose costs and commission fees to be taken out of the cash proceeds of a life settlement. Be aware of what you are entitled to know about your life settlement transaction.
For more information and for a free life settlement estimate, click the LIVEpdq link today!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.