NCOIL Prepares For Lively IOLI Call

Cornman says the groups submitting the joint letter will include the ACLI; the National Association of Insurance and Financial Advisors, Falls Church, Va.; the Association for Advanced Life Underwriting, Falls Church, Va.; and the National Association of Independent Life Brokerage Agencies, Fairfax, Va.

LISA Executive Director Doug Head, who plans to speak during the call, said his organization opposes IOLI transactions involving kickbacks and cases in which consumers have agreed before getting life insurance coverage to sell policies to buyers.

“We don’t want to see an improper act,” Head says.

But life insurers also should notify new contract holders that they have a right to know what the value of a contract would be if it were settled, Head says.

Head says he believes individual producers who belong to NAIFA are more supportive of LISA’s positions on life settlement model changes than NAIFA itself has been.

“NAIFA gets rolled all the time,” Head says. “I don’t think their members know what is being said in their name.”

NAIFA spokesman Jim Edwards says NAIFA goes to great lengths to educate its members on legislative and regulatory issues that affect their business and their clients.

“Many members are engaged in our advocacy activities,” Edwards says. “Any position NAIFA takes, for instance, must be approved by members on NAIFA’s policy formation subcommittee and board of trustees.”

About 90% of NAIFA members who participated in a recent survey said they trust NAIFA to take positions that are in their best interests, Edwards says.