Which agencies provide regulatory oversight to the life settlement industry?
Life settlement transactions are regulated by state laws. Life settlements are regulated in at least 28 states, many of which have been guided by the model statutes and regulations developed by the National Association of Insurance Commissioners (NAIC). Such rules typically require, among other things, consistent documentation, disclosures, anti-fraud measures, rescission periods and usually require brokers to hold a life insurance sales license. Several state insurance commissioners in the West have openly spoken in favor of life settlements because they provide a financially attractive alternative to surrendering a policy back to the insurance company. Historically, states have provided an exemption from licensing when a policy is purchased directly from the policyowner to be held by the new owner in its own portfolio, as is the case with Life Settlement Financial and its trusted third parties. There is a trend, which LSF supports, for states to introduce legislation to regulate life
Life settlement transactions are regulated by state laws. Life settlements are regulated in most states, many of which have been guided by the model statutes and regulations developed by the National Association of Insurance Commissioners (NAIC). Such rules typically require, among other things, consistent documentation, disclosures, anti-fraud measures, rescission periods and usually require brokers to hold a life insurance sales license. Several state insurance commissioners in the West have openly spoken in favor of life settlements because they provide a financially attractive alternative to surrendering a policy back to the insurance company. Historically, states have provided an exemption from licensing when a policy is purchased directly from the policyowner to be held by the new owner in its own portfolio, as is the case with Life Settlement Financial and its trusted third parties. There is a trend, which LSF supports, for states to introduce legislation to regulate life settle
