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Quiz question: Firms are leaving which states?

By Trevor Thomas

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The question was: Which three states do life settlement firms cite most often as states the firms have left due to concerns about laws and regulations?

a) North Dakota, West Virginia and Vermont
b) New Jersey, Florida and New York
c) Texas, Ohio and Vermont
d) Georgia, New York and North Dakota

The answer is: a. The three states that settlement firms cite most often as states they have left due to concerns about laws and regulation are North Dakota, West Virginia and Vermont. That is according to a recent survey by the Life Insurance Settlement Association, Orlando, Fla.

All 3 states have restricted use of settlements during the first 5 years after a life insurance policy is purchased, LISA says. North Dakota and West Virginia both require life settlement providers to carry a surety bond, the association continues, and starting October 1, 2009, Vermont will prohibit brokers from earning more than 2% of the amount paid by a life settlement company to the policy owner.

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