Quiz question: Jurisdiction over settlements?

The answer is: a) yes, according to testimony given by SEC Chairman Mary Schapiro during a hearing of the Senate Special Committee on Aging in Washington, D.C. in April 2009. She told the Aging Committee that a life settlement transaction would come under SEC authority “regardless of whether the policy is a security (and many life insurance e policies are not) if the owner sold the policy in order to purchase securities with the proceeds.” She also said that a life settlement comes under the SEC’s authority if the policy involved is a variable life insurance policy or some other product that is treated as a security. Read more about the hearing here