An Association for Advanced Life Underwriting official talked about efforts to revise the National Association of Insurance Commissioners life settlement model.
The official, Tom Korb, a vice president at the AALU, Falls Church, Va., gave his views on the prospects of the NAIC, Kansas City, Mo., approving changes already proposed, and he talked about other changes the AALU also is seeking.
Korb spoke here during an AALU conference discussion of the life settlement industry.
Korb noted that the AALU worked with other insurance groups to seek a clarification that a $250,000 bond requirement permits a single bond to apply across all 50 states.
During the panel discussion, Korb talked about NAIC model update draft provisions that could ban or sharply restrict the sale of life insurance policies for at least 5 years after policies are purchased.
Korb commented on the extensive set of exceptions
The AALU, other insurance groups and the NAIC have added exceptions to the proposed model revisions, so that the proposed model revisions will address stranger-originated life insurance more effectively while protecting legitimate life insurance and life settlement arrangements, Korb said.
There are now exceptions for legitimate arrangements used for estate, business continuation, business protection and employee benefits planning, as well as a provision that allows someone with insurable who puts up his, her or its own money for the during the first 2 years to sell the policy thereafter, Korb said.