Mass. Attorney General investigating life settlement firms
For the second time in less than a year, the controversial life settlement industry has come under investigation from a major Massachusetts state agency.
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This is a thorough collection of Life Insurance industry articles for your review.
Principle-based reserving impacts insurance policy
A task force created by the National Association of Insurance Commissioners appointed a new subgroup to study the impact principles-based reserving would have on the life insurance industry.
Read MoreFlorida among states cutting benefits for government employees
New budget cuts in the state of Florida have eliminated or trimmed benefits for more than 1,800 state employees.
The cuts, which were part of a bill designed to save the state $70 billion, eliminated free health insurance for state employees, and also capped the amount they can receive in life insurance benefits, according to a report in the Fort Myers News-Press.
Read MoreHow do new life settlement guidelines affect me?
The guidelines for a new life settlement law in Illinois will be posted on the state insurance department website next week, a state official said.
The law, which was passed last year but doesn’t take effect until July 1, allows life insurance policies to be sold after two years and outlaws “stranger-originated” life insurance, according to a report in the Life Settlements Wire. It is based partly on legislation developed by the National Conference of Insurance Legislators and the National Association of Insurance Commissioners.
Read MoreHow does the economy impact life insurance coverage sales?
Economic conditions have recently translated into a better outlook for the life insurance industry, according to Moody’s Investor Services.
Strengthened employment rates and consumer spending are among the factors that could contribute to increased life insurance coverage sales, while variable-annuity and asset-based businesses have improved along with elevated stock prices. These factors should contribute to stronger capital, according to the report, boosting companies from negative to stable outlooks.
Read MoreWhy life insurance sales and settlements increased
While a growing number of Americans are purchasing life insurance policies, many more are selling such coverage through life settlements, according to the latest AmritaLife Settlement Index.
A life settlement is often a more profitable approach to cashing out on your coverage than selling it back to your original lender. Many investors in such policies are actually insurance agents and receive substantial financial benefits when the policyholder dies.
Read MoreWhy is stranger-oriented insurance an opportunity for fraud?
Investors may be able to receive significant profits through purchasing an elderly or ill individual’s life insurance policy through a life settlement.
They may also benefit through selling variable annuities. Individuals who sell these assets through a stranger-originated transaction, however, may be targeted by fraud, according to the Life Insurance Settlement Association.
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