The question was: Does the Securities and Exchange Commission have jurisdiction over life settlement transactions in which the owner sells a life policy that is not a security in order to use the proceeds to purchase securities?

a) Yes
b) Yes, but only over the securities purchase
c) Sometimes
d) This is open to debate
e) No

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