NU Online News Service, April 8, 2004, 6:02 p.m. EDT – Life insurers are protesting a decision that might let licensed life insurance agents act as viatical brokers without obtaining separate licenses.[@@]
A committee at the National Association of Insurance Commissioners, Kansas City, Mo., voted in March to remove a provision from the Viatical Settlement model regulation that would have required agents to get separate licenses before they could serve as viatical brokers.
The NAIC’s executive committee and plenary have not yet considered the model.
Frank Keating, president of the American Council of Life Insurers, Washington, has sent all commissioners a letter that urges them to restore the original viatical broker licensing provision.
“It is both illogical and dangerous to assume that a licensed life insurance agent, without being first educated and trained, can correctly answer consumer questions regarding the particulars of viatical settlement transactions, such as the tax consequences and impact on government benefits eligibility,” Keating writes in the letter.