The New York State Insurance Department wants to find out what consumers and investors think about the life settlement market.
The department has scheduled a series of life settlement hearings that will start Nov. 6 in Old Westbury, N.Y.
The series of hearings will include a hearing Nov. 7 in New York.
The department has scheduled the hearings to “gather information about the life settlement industry to help ascertain the scope of oversight and regulation needed to protect insurance policyholders in New York state,” officials say in the hearing announcement.
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.