Advocacy Update: November 15, 2007
NCOIL Life Settlements Subcommittee Adopts Revisions to Settlement Model Act
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Gary Sanders
703-770-8192
Earlier today, following over eight hours of discussion, NCOIL's Life Settlement Subcommittee adopted revisions to the NCOIL Life Settlement Model Act. NCOIL has been working on amendments to its Model Act for over a year to restrict stranger-originated life insurance (STOLI) transactions while protecting legitimate life settlements. NAIFA, along with AALU and ACLI, has been extensively involved in these discussions and in the subcommittee's deliberations. Despite strong opposition, we were able to substantially achieve three of our four critical objectives, including a specific definition and prohibition of STOLI and enhanced reporting requirements for settlement transactions. The Model is scheduled to be considered later this evening by NCOIL's Life Insurance Committee and by NCOIL's Executive Committee on Saturday.