The question was: Four states have enacted laws that require insurers to notify policy owners that the owners have alternatives to cashing out, accelerating or lapsing their life policies. Which of the following are the four states?

a) Washington, Illinois, Idaho, and Florida
b) Oregon, Florida, Nevada and Mississippi
c) Maine, Rhode Island, Texas, and Nevada
d) Ohio, Georgia, Indiana, and California
e) Washington, Oregon, Maine, and Kentucky

The answer is: e). Washington, Oregon, Maine and Kentucky are the four states that have laws requiring life insurers to notify policy owners that the owners have alternatives to cashing out, accelerating or lapsing their life policies. The disclosure provisions contain slightly different wording, but settlement executives point out that each law is phrased in such a way as to require that life settlements be mentioned as one of the alternatives.

See related articles:

Kentucky enacts settlement notice rule

Feature: How does disclosure of settlement options impact agents?

The disclosure notice laws can be found here:

- The Washington disclosure provision appears in SB 5195 – 2009-10.

- The Oregon disclosure provision appears in SB 973, SECTION 22.

- The Maine disclosure provision appears in PL 2009, c. 376.

Note: The Maine provision was slightly amended in March 2010 under LD 1523, which can be viewed here.

- The Kentucky disclosure provision appears in HB 126