A Florida administrative judge has tossed out part of a proposed state insurance regulation that could require life settlement firms to file detailed annual reports on out-of-state deals as well as Florida deals.
The judge says the proposed regulation is invalid because it extends to transactions completed outside of Florida.
The Life Insurance Settlement Association, Orlando, Fla., challenged the proposed regulation on behalf of life settlement firms that do business in Florida.
LISA argued that the proposed rule because would have required Florida-based businesses in the industry to give detailed information about all life settlements – including out-of-state deals – that they had completed within the past 5 years to the Florida Office of Insurance Regulation.
The information the FOIR wants includes the total numbers of policies purchased by each firm, the total amounts paid for the policies, and the total face value of the purchased policies.
The statute authorizing the FOIR to impose rules “does not provide specific authority for [the FOIR] to collect data regarding transactions not even subject to Florida regulation,” Administrative Law Judge Suzanne Hood writes in the ruling.