NU Online News Service, April 5, 2005, 6:01 p.m. EDT
A group that represents players in the life insurance policy resale market is putting certain policies off-limits.[@@]
The Life Settlement Institute, Washington, says it supports use of loans to finance some purchases of insurance, such as purchases of life insurance in the business-planning market, but will discourage life settlement companies from buying policies purchased with some new, “non-recourse premium finance programs.”
Those programs may violate insurable interest, usury, life settlement, premium finance, rebating or other insurance and consumer-protection laws, the institute says.
The institute says institute members should not buy policies purchased with loans that have the following characteristics: