Lone Star State insurance regulators are reminding life settlement providers and brokers about their state’s life settlement marketing rules.
The Texas Department of Insurance has issued the reminder in the form of Texas Commissioner’s Bulletin B-0026-07, which deals with the advertising, registration and name usage requirements that apply to viatical and life settlement providers and brokers operating in Texas.
Companies that want to buy life insurance policies from Texas residents must file any advertisements and any names other than the companies’ current legal names, with the Texas department, Audrey Selden, a Texas senior association commissioner, writes in the bulletin.
The advertising filing requirement includes letters, Web sites, prepared sales presentations and telephone scripts as well as letters, radio ads and television commercials, Selden writes.
In addition, individuals or companies that want to buy policies from Texas residents must register as life settlement or viatical settlement providers, provider representatives or brokers with the Texas department, Selden writes.
The American Council of Life Insurers, Washington, has put out a statement welcoming the Texas bulletin and expressing concern about “stranger-owned life insurance” arrangements.
“We’ve seen a rash of solicitations in which senior citizens are offered incentives to allow investors to purchase insurance on them in order to profit from their deaths,” ACLI President Frank Keating says in the statement. “While these schemes are often touted as ‘free insurance,’ there are hidden costs, dangers and legal issues which unscrupulous promoters fail to disclose.”
A copy of the Texas bulletin is on the Web