The presidents of 2 producer assocations say the groups have been speaking for members–not acting on behalf of–in recent discussions about life settlement model law efforts.
Officials at the Association for Advanced Life Underwriting, Falls Church, Va., and the National Association of Insurance and Financial Advisors, Falls Church, have rejected recent assertions by Doug Head, executive director of the Life Insurance Settlement Association, Orlando, Fla., that the AALU and NAIFA have been “working against their members” by supporting a model law adopted by the National Association of Insurance Commissioners, Kansas City, Mo., rather than a model supported by the National Conference of Insurance Legislators, Troy, N.Y.
LISA prefers the way NCOIL treats “stranger-originated life insurance.”
“At a time when there is a critical need for producer leadership and industry unity given the multiple key issues and threats confronting us, it is unfortunate that we need to deal with the continued false claims and politics of division engaged in by the Life Insurance Settlement Association,” says AALU President Larry Raymond.
AALU Chief Executive David Stertzer says Head did not accurately portray the AALU’s stance.
“Our consistent goal has been to address STOLI as effectively as possible through targeted state legislation, with exceptions that we played a primary role in crafting, which cover legitimate uses of life insurance and life settlements,” Stertzer says. “We believe that state legislation which is most reflective of this approach is a hybrid of the models developed by the National Association of Insurance Commissioners and the National Conference of Insurance Legislators.”
At NAIFA, NAIFA President Jeffrey Taggart says the group has not directly polled members about which model to support in each statehouse.
But NAIFA has decided how to address the issue using the same process it would use to consider any other issue, and NAIFA members have been supportive of NAIFA’s stance in their own states, Taggart says.
“If the membership was opposed to the position NAIFA has taken on STOLI, we doubt our grassroots efforts would have been met with such enthusiastic responses,” Taggart says.
Jack Dolan, a spokesman for the American Council of Life insurers, Washington, dismissed the idea that NAIFA and the AALU have been acting in concert with the ACLI.
“It doesn’t really even require a rebuttal, because anybody who knows the industry knows that the company and producer organizations are quite independent entities,” Dolan says.