The Washington state Senate adopted legislation to regulate the life settlement market. The bill included a provision requiring carriers to let people know that a life settlement, along with lapsing or surrendering, are options for exiting unwanted policies. SB 5195, which was overwhelmingly approved by the Senate recently, would regulate life settlements for the first time. The state currently only regulates viaticals. The bill would require the insurance department to prepare a document to be used by insurers to let people know they can consult financial advisers to learn of their options if they no longer want their policies. The bill is based on model legislation developed by the National Conference of Insurance Legislators (NCOIL), which would allow insureds to sell their policies two years after issuance. It also includes measures meant to prevent stranger-originated life insurance (STOLI).
Please email info@ashargroupllc.com for any questions or feedback regarding a potential policy to be reviewed.
