Players in the life settlement market want to make sure consumers understand how the brokers involved are paid.
At least 15 states have included broker disclosure requirements in viatical laws, according to Bryan Freeman, president of the Life Insurance Settlement Association, Orlando, Fla.
But the life settlement industry will be looking at other disclosure possibilities, Freeman said during a teleconference sponsored by Bear, Stearns & Co. Inc.
Bear Stearns held the teleconference shortly after LISA organized its annual spring conference in New York.
The topic of life settlement broker comp disclosure also came up during the LISA conference.
Life settlement brokers want to promote thorough disclosure to prevent abuses from occurring and to prevent commissions paid to an initiating agent from being out of line, said LISA Executive Director Doug Head.
Rob Haynie, managing partner at Life Insurance Settlements, Fort Lauderdale, Fla., said life settlement industry participants will be looking into the possibility of promoting requirements similar to those filed with state insurance departments by carriers.
Participants will discuss the possibility of developing language that would set a cap on broker compensation, Haynie said.
