Association for Advanced Life Underwriting officials last week made clear they support legislation creating an optional federal charter for insurance.
They also said they “applaud” the decision of the board of the National Association of Insurance and Financial Advisors to recommend to its members support for an OFC.
At the same time, the officials reiterated their opposition to stranger-originated life insurance.
In comments at the annual AALU meeting here as he closed out his term as president, Larry Raymond, said AALU “is not against legitimate life settlements, but if we don’t stop STOLI, we will lose the essence of what we got into this business to do.”
But Ken Kies, who is counsel and an outside lobbyist for AALU as managing director of the Federal Policy Group, which is part of Clark & Wamberg, LLC, said AALU will not deal with STOLI at the national level, “not if we have anything to say about it.”
He said it is “not on the table in Congress because the states are dealing with it, albeit at different paces.” They are doing so “throughout the country” through the National Association of Insurance Commissioners and National Conference of Insurance Legislators model laws.
“At bottom this is an insurable interest issue, a state law issue,” Kies said. “So it is proper for states to deal with it.”
On the OFC and NAIFA issues, Marc Cadin, vice president of legislation affairs for AALU, said AALU supports an OFC, “but, in light of all the issues we are dealing with, it is not our top priority.”
He said AALU “wants to be engaged because we believe the rest of the industry supports this and we want to support our members’ interest as it moves along.”
AALU also will support NAIFA as it seeks to persuade its members to back the proposal, which will take place at NAIFA’s annual meeting in San Diego in September.