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June 28, 2017 at 09:39 AM
Florida Gov. Rick Scott signed into law Monday a bill that will require life insurance companies to advise policyholders to consult with a licensed insurance agent or financial advisor before making changes to their policies.
The Florida state legislature passed H.B. 1007, a bill designed to regulate how insurers help fight insurance fraud in the state, on May 5. State Sen. Jeff Brandes, R-St. Petersburg, Fla., introduced amendments to the bill that require insurers to advise consumers to consult with a professional before making changes to their life coverage. The amendments had the support of the Life Insurance Settlement Association.
(Related: Life Settlement Market Enjoying Gains, but Challenges Remain)
Other provisions in the new law require every insurer in Florida to designate at least one primary anti-fraud employee, require every insurer to adopt an anti-fraud plan, and require the Florida Division of Investigative and Forensic Services to develop a report on best practices for insurance fraud prevention, detection and reporting.
The life settlement market gives holders of life insurance policies a chance to sell policies that are already in force to other parties.
