It looks like West Virginia is one of the first states to pass a strict regulation on Life Settlements, however it is more geared toward STOLI (Stranger owned life insurance policies.)
The life settlement legislation, called S. 704, takes elements from model acts created separately by the NAIC (National Association of Insurance Commissioners) and the National Conference of Insurance Regulators. You read about previous NAIC Model Acts here at Life Settlement News.
One portion of the rule puts a five-year moratorium on the settlement of STOLI policies, a measure that comes from the NAIC’s model act. This is to prolong the sale of these type policies to 5 years.
Meanwhile, a second portion of S. 704 legally defines STOLI and identifies it as a fraudulent act — an element from NCOLI’s model.
We feel that that STOLI fraudulent act is good for the industry. Insurance companies are constantly raising premiums for individual consumers to fight the wave STOLI policies that are effecting their pricing models.
“By adopting legislation that takes the best features from the NAIC and NCOIL models, West Virginia lawmakers have provided their seniors with the highest level of protection in the nation,”
Frank Keating, president and chief executive of the American Council of Life Insurers said in a statement.
We will keep you up to date on future regulations within the Life Settlement Industry.
If you have specific questions please call a Life Settlement Professional at 1-888-973-8377.
We look forward to speaking with you.
