N.Y. Regulators Schedule Life Settlement Hearings

Today, the practice of buying in-force life insurance policies and packaging them for resale to investors is "outside the scope of the Insurance Law and essentially unregulated," officials say.

"These transactions raise fundamental concerns about the privacy rights of policyholders and insureds (particularly where the policies are resold), the lack of transparency regarding commissions paid to brokers and others, and the possible use of deceptive solicitation practices to obtain ownership of, or a beneficial interest in, life insurance policies owned by residents of New York state," officials say.

Officials say they are particularly interested in hearing any consumers that policyholders and insureds have about deceptive sales practices and protection of private information.