FairMarket Life Settlements Corp. and Magna Life Settlements Inc. have received the first two licenses issued under New York state’s new life settlement laws.
The new New York Life Settlement Act was enacted in November 2009 and took effect May 18.
The law authorizes the New York State Insurance Department to regulate consumers’ sales of life insurance policies to other parties.
“The department continues to review additional license applications and will issue more licenses as these reviews are completed,” James Wrynn, the New York insurance superintendent, says in a statement.
FairMarket, St. Louis Park, Minn., and Magna Life, Miami, will not have the New York life settlement market all to themselves.
There were 29 other companies already doing life settlement business in New York before the new law took effect, and those companies can continue to operate as life settlement providers until the New York department acts on their license applications, officials say.
- Trevor Thomas