Life Settlement News

The Life Insurance Settlement Association announced the passage of a new law in New York that establishes comprehensive regulation of Life Settlements in that state. The new law introduced at the request of the New York State Insurance Department by Senator Neil Breslin (S66009) and Assemblyman Joseph Morelle (A40009), is based on the National Conference of Insurance Legislators (NCOIL) Life Settlement Model Act.

New York’s state Legislature has passed a bill that would to regulate life settlements, requiring brokers and intermediaries to get their insurance licenses.

The life settlement market is now ten years old and the news is out! In recent months, the secondary market for life insurance has been the topic of articles and programs such as The New York Times, The Wall Street Journal, and ABC Nightly News among others. With this heightened awareness, consumers are reevaluating their financial choices and investors are taking a closer look at an increasingly attractive asset class.

On November 8-10, life settlement professionals from all walks of life will converge on New York City for the Life Insurance Settlement Association’s (LISA) 15th Annual Fall Life Settlement Conference. As 2009 winds down and the US economy shows signs of leveling, LISA proudly brings together sophisticated investors, institutional funders and other life settlement professionals for an intimate three day meeting. The LISA Fall Conference comes in the midst of a significant show of interest by the federal government and the general public. With hearings on Capitol Hill, increased activity on Wall Street and a surge in mainstream media, the life settlement industry is poised to make major gains in investment influx and public awareness.

Agreement Outlines Industry Best Practices; No Fine or Penalty Assessed

As the global economy starts to show signs of a recovery, investors and their advisors are increasingly recognizing life settlements as a stable and viable asset class.

Revised NCOIL-based legislation will be brought up in next session

New York, one of just 10 states where life settlements are unregulated, is unlikely to see a law governing the business until January, when legislators reconvene for their next full session. In June, state lawmakers adjourned without passing legislation that closely followed a model act drafted by the Washington-based National Conference of Insurance Legislators. An earlier bill, proposed by the state’s insurance department and containing a controversial requirement that investors in life settlements register with the department, had been scrapped.

The Life Insurance Settlement Association (LISA) kicks off this weekend in New York City, what promises to be its largest conference ever. The LISA 13th Annual Fall Conference begins this Sunday with a reception welcoming more than 500 registered attendees. The following two days offer attendees an extraordinary lineup of prominent speakers addressing the most significant issues facing the life settlement industry to date. The conference presents a constructive platform for attendees to engage each other on the latest industry research, business developments and legislative updates, among many other issues. Participants will take advantage of the exclusive networking opportunities available in a variety of forums.

The National Association of Insurance Commissioners (NAIC) has adopted amendments to its Viatical Settlements Model Act. “This action was taken despite the fact that the model was poorly drafted, did not meet the stated objectives of the regulators and was expedited without having fully considering the issues raised by all industry sectors,” according to Scott J. Cipinko, executive director of the Life Insurance Finance Association (LIFA).
In addition, the adopted changes do not recognize how the life insurance industry and the secondary markets actually operate. “This is just unsettling. The rights of the consumers were not actually considered, and the changes will impair the rights of many life insurance consumers that the Model Act was aimed at protecting,” continued Cipinko.

Mergers and the battle to maintain market share will dominate the agendas of many life insurers over the next 12 to 18 months, according to analysts and company executives at a Standard & Poor’s insurance conference here last week.