Proposed Law Requires Life Settlement Disclosure

In the ongoing debate over life settlements, another volley has been fired. Kentucky state representative Ronald Crimm (R-Louisville) has drafted a model bill that would require some policy owners to be told about the option to take a life settlement when considering terminating or cashing in a policy, according to a story by the NU Online News Service. The National Conference of Insurance Legislators (NCOIL) has posted the draft online.

The American Council of Life Insurers (ACLI) is opposed to such a requirement, saying that it would apply only to a very small number of policyholders. But Crimm, who formerly owned an insurance agency, said that, as a viable option, life settlement ought to be disclosed.