What consumer protections does the new law provide?
• Requires a five-year waiting period instead of two years in certain circumstances before an individual may settle a life insurance policy. The waiting period affects only policies that are originated and funded by investors. • Does not affect the rights of people who purchase life insurance in good faith, including their right to sell the policy if it becomes necessary. Only those who promote the badfaith purchase of life insurance will be stopped. • Ensures that life insurance benefits are paid to those who reasonably expect to benefit from the insured’s continued life, and who suffer a loss from his or her early death. • Requires life settlement brokers and life settlement providers to provide insurers with additional information prior to engaging in a life settlement. • Mandates life insurance companies to ask specific questions in order to identify STOLI transactions and report them to the Department. • Gives the Department additional oversight authority over life settlement brok
