Life settlements in the US
stand to receive a big boost thanks to the National Conference of
Insurance Regulators, which has just published the controversial
“Life Insurance Consumer Disclosure Model Act,” (LICD).
The model act’s publication
followed extensive debate in 2010, including numerous conferences
attended by legislators, regulators, representatives of the
American Council of Life, life settlement companies and their
industry bodies and major life insurers.
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The model is based on a law
enacted in the state of Kentucky in 2010 and requires insurers to
notify people who are over the age of 60 or who are terminally or
chronically ill in “easily understandable language” of alternatives
to giving up their policy.
The act covers eight possible
options, including life settlements, accelerated death benefits,
and conversion to long-term care policies. Policy holders would
also be advised to contact their financial adviser, insurance
agent, broker or attorney to obtain advice or
assistance.
NCOIL is an organisation of state legislators whose main
area of public policy interest is insurance legislation and
regulation. Most legislators active in NCOIL either chair or are
members of committees responsible for insurance legislation in
their respective state legislative houses.
