The National Conference of Insurance Legislators has posted a draft of a model bill that would require life insurers to tell some policy owners about the life settlement option.
The life settlement option notice bill draft was developed by Kentucky state Rep. Ronald Crimm, R-Louisville, Ky.
NCOIL, Troy, N.Y., says its Life Insurance and Financial Planning Committee could consider the draft Nov. 19.
Kentucky is one of a number of states that have laws requiring insurers to tell policyholders about the life settlement option when policyholders are considering cashing in or terminating a life policy. Other states with similar requirements include California, New Hampshire, Maine, Florida and Washington.