A prominent figure in the life settlements industry promised a “frontal assault” if regulators place a moratorium on the ability to settle a life insurance policy during the first 5 years of a contract.
Regulators at the National Association of Insurance Commissioners, Kansas City, Mo., are considering the moratorium as one of a number of possible responses to concern over the growth of stranger-owned life insurance.
The discussion, scheduled for June 11 during the commissioners’ Life & Annuities “A” committee meeting, follows a public hearing May 3.
At that hearing, CEOs of life insurance companies, life settlement companies and one institutional investing company offered input on SOLI, life settlements and the concept of insurable interest. The remarks were made in conjunction with work to revise the NAIC’s Viatical Settlement Model Act.