Two Ohio legislators are expected to introduce a new bill tomorrow that would impose a five-year waiting period before new life insurance policies could be settled. The bill is meant to deter stranger-originated life insurance (STOLI).
Jay Hottinger, a Republican in Ohio’s House of Representatives, and Matthew Barrett, a Democrat, plan to introduce House Bill 404 in the Insurance Committee, according to Jonathan Baker, a legislative aide for Hottinger.
He said his office worked on the bill with the American Council of Life Insurers (ACLI), a trade group representing major carriers, and the Ohio Insurance Department.
A committee hearing on the proposal may be scheduled for next Tuesday or Wednesday, Baker said.
“Life insurance is designed to provide protection to covered individuals and those who have an interest in that person’s life,” Hottinger said in a Nov. 30 joint press statement with Barrett. “The practice of STOLI financially benefits those who have a great interest in that person’s death. That’s why Ohioans should be interested in stopping this unconscionable practice.’
“We’re closing a dangerous loophole with this legislation,” Barrett said in the statement. “We must stop people from taking advantage of some of our most vulnerable citizens, and this bill takes a big step toward broadening protections for our seniors and their families.”
Source: APÂ
This should not have any effect on normal Life Settlement Transactions in the state of Ohio. Call 1-888-973-8377 with any Life Settlement questions or cases.
