New York Proposes Life Settlement Bill

The New York State Insurance Department has proposed a life settlement bill.

New York now regulates viatical settlements, or life settlements involved gravely ill insureds, but it does not regulate life settlements involving healthy insureds.

The proposed bill would set licensing, registration and disclosure requirements for facilitators of life settlement transactions.

The companies involved in arranging a transaction would have to give the policy seller a statement showing the difference between the gross offer for the policy and the net amount to be paid to the owner, including a listing of all fees and compensation to the broker and other deal participants.