NCOIL Urges State Lawmakers to Support Life Settlements Model Act |
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Written by U.S. Insurance News
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Friday, 22 February 2008 |
The National Conference of Insurance Legislators is still waiting.
The National Conference of Insurance Legislators is still waiting.
Last November, its Executive Committee adopted a Life Settlements Model Act in an attempt to put an end to illegal stranger-originated life insurance schemes (STOLIs).
Now, NCOIL is waiting for state legislatures to act.
Earlier this month, NCOIL sent a letter to legislative leaders and insurance committee chairs in all 50 states and related jurisdictions which reaffirmed its commitment to the Life Settlements Model Act. NCOIL believes the model is the best way to address the problem of STOLIs and protect policyholders.
Brian Kennedy, president of NCOIL and a state representative in Rhode Island, wrote in the letter, “Whether STOLIs are broached by your state insurance department or insurance and other industry representatives, the issue—if not already—soon will be on your state’s insurance committee agenda. I would encourage you to introduce the NCOIL proposal, as we believe that it is a strong model that protects the property rights of individual policy owners while addressing STOLI abuses.”
Rep. George Keiser, a state legislator from North Dakota, chaired the Subcommittee on Life Settlements during the model’s development. “The intricacies of the issue necessitate continued NCOIL direction and involvement,” he said. “As an organization, we will continue to educate fellow policymakers, monitor state activity and ardently support adoption of the NCOIL model.”
Seventeen states are in the process of addressing the issue of life settlements in their respective chambers, and more states plan to do so soon.
When it meets on February 28 in conjunction with the NCOIL Spring Meeting in Washington, D.C., the Life Insurance & Financial Planning Committee will review current state activity relating to STOLI legislation, continue educational efforts, and discuss further ways to actively promote adoption of the NCOIL proposal.
The committee also will examine another important topic—the use of deceitful sales designations, aggressive marketing tactics, and fraud in the sale of securities to seniors. Representatives from the AARP, the North American Securities Administrators Association (NASAA), and the National Association of Insurance and Financial Advisors (NAIFA), among others, will discuss what is being done to protect the needs of seniors.
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