Florida insurance regulators have asked a Minnesota company to stop buying life insurance policies for their state.
The Florida Office of Insurance Regulation has issued a cease-and-desist order to Great West Growth L.L.C., Minneapolis, in connection with allegations that Great West has been buying policies in Florida without holding a Florida life settlement provider license.
Great West has processed life settlement contracts involving at least 8 life insurance policies owned by Florida residents, and the company has reviewed about 200 other policies owned by Florida residents, Florida officials say.
Great West recently released a press release in which the company emphasized it will comply with Florida insurance regulators in order to clear up any questions regarding their business. President and Chief Operating Officer Russell Berman says in the release, “The order came as a complete surprise to us.”
Doug Head, executive director of the Life Insurance Settlements Association, Orlando, Fla, explains the issue is one of what an insurance provider is, as opposed to a financier, according to Florida law. He commented generally on the situation, “The difficulty for everybody is determining where the line is between provider activity and financing entity as described by Florida law.”
Berman also says, “Although we are not licensed to do business as a life settlement provider in Florida, we do act as a financing entity which acquires life insurance policies purchased by providers that are licensed in Florida.” He continues, “Great West Growth is committed to complying with the applicable rules and regulations of all the states in which we conduct business.”
Great West Growth L.L.C is not an affiliate of Great West Life and Annuity Company, Greenwood Village, Colo.