Sunday, April 01, 2007 4:46:00 PM
Veralytic (under its original name, THEInsuranceAdvisor.COM) was featured in the February/March 2007 issue of @ Regulatory – a regular bimonthly publication by Deloitte & Touche. This particular issue included a briefing on the National Association of Insurance Commissioners (NIAC) Viatical Model Regulation.
This Model Regulation was amended in December 2006 to make it applicable to both viatical settlements and life settlements. While Viatical settlements allow a terminally ill person (life expectancy two years or less) to sell his/her life insurance policy to collect cash while he/she is alive, life settlements allows the insured to sell his/her life insurance policy for more than cash surrender value but less than death benefit to a “viatical” or “life” settlement provider. In return, the settlement provider pays the future premiums to keep the policy inforce and receives the face amount of the life insurance policy when the insured dies. The life settlement market has been the subject of increased scrutiny as of late, due largely to the continuing increase in stranger-originated life insurance (STOLI - which is/was also known as stranger-owned life insurance or SOLI) transaction, and the market conduct surrounding these transactions. @ Regulatory cites the Veralytic white paper “Stranger-Owned Life Insurance: Free insurance? Found money? A good investment? A scam? What is it anyway?” as a good resource for more information about STOLI and the secondary market for viatical and life settlements.
To read entire briefing Click Here.