Life Insurers Say Life Settlements Help Consumers
source: California Broker Magazine

The National Assn. of Insurance Commissioners, (NAIC) recently held a public hearing to get testimony about potential insurable interest issues in some premium finance programs and to explore a connection between premium-financed policies and the mainstream life settlement industry. According to Frank Keating, the President of the American Council of Life Insurers, “We have no quarrel with traditional, legitimate viatical settlements or life settlements. We understand that policyholders who face extraordinary medical expenses or whose financial protection needs have changed may decide to sell their policies in the secondary market after considering the ramifications.” Life settlements have been recognized by virtually every legislative and regulatory body in the United States, by the NAIC, by the National Council of Insurance Legislators, and by the Financial Accounting Standards Board, noted Bryan Freeman of the Life Insurance Settlement Assn. and Habersham Funding. Freeman said that it would be a serious mistake if regulators chose to limit a life insurance policyholder's financial options and it would be harmful to consumers. For more information, visit www.lisAssn.org.