A group formed by the Wisconsin Office of the Commissioner of Insurance has proposed rules that would require life insurers to tell insureds about a variety of alternatives to letting policies lapse.

Issuers of policies with at least $100,000 in face value would have to tell policyholders who were thinking about surrendering policies, changing policies or letting policies lapse about the possibility of selling the policy in the life settlement market.

The notice requirement is part of a life settlement package that the life settlement subgroup at the Wisconsin office sent to Wisconsin Insurance Commissioner Sean Dilweg.

The package would also set training and licensing requirements for life settlement brokers and establish an outline for a life settlement consumer guide to be distributed by life insurers in Wisconsin.

-Trevor Thomas