Nebraska Life Settlement Investors Ruling
If this ruling would have went the opposite direction, it could have opened the door for some crazy lawsuits.
Nebraska Supreme Court has ruled against a group of investors who sought to force the Nebraska Life and Health Insurance Guaranty Association to cover nearly $1 million in losses incurred as the result of a bad investment in life insurance contracts.
In Harvey v. Nebraska Life & Health Ins. Guar Assn., the investors argued that they were entitled to recoup their losses from the guaranty association, which is designed to protect residents who own life or health insurance policies or annuity contracts issued by carrier companies that become insolvent.
Doug Head, Executive Director of the Life Insurance Settlement Association (LISA), noted that “life and health insurance guaranty associations are an important safety net and serve a critical role in our overall insurance system. To allow unhappy investors to seek compensation where no carrier insolvency has occurred is fundamentally inconsistent with the reasons for the existence of such guaranty associations.”
