The life insurance industry is stepping up efforts to keep investors from insuring the lives of strangers.[@@]
Industry groups are teaming up to form a task force that will try to keep the new “investor-owned life insurance” program organizers from persuading states to expand the “insurable interest laws” that determine who has the right to insure an individual’s life.
The groups organizing the task force are the National Association of Insurance and Financial Advisors, Falls Church, Va.; the Association for Advanced Life Underwriting, Falls Church, Va.; and the American Council of Life Insurers, Washington.
Some federal officials have suggested that Congress might consider taxing some or all of the inside buildup within life insurance policies if the IOLI market continues to grow.