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NCOIL Model Act |
Summary of
Language/Provision |
Why We Support |
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Life Settlement vocabulary
|
Use of “life settlement”
vocabulary throughout the Model Act. |
Uses commonly understood words, including "Broker,"
"Life Settlement
Contract," "Owner," and "Life Insurance Producer." |
|
"Life Settlement Contract"
NCOIL Model §2(L) |
Defines "Life Settlement Contract" |
By providing a well researched and clearly stated
definition, this provision helps all
parties to differentiate a legitimate life
settlement from a STOLI transaction. |
|
"STOLI"
NCOIL Model §2(Y) |
Defines STOLI. |
This provision, while it remains expansive, helps
all parties to identify true STOLI transactions. |
|
Prohibits the engagement in
STOLI transactions
NCOIL Model §§2(H)(1),14,15,16 |
A prohibition on engaging
in STOLI transactions which are defined as
"Fraudulent Life Settlement Acts," during the
life of the policy. |
This
provision rightly makes STOLI
transactions illegal, while not burdening life
settlements. |
|
"Disclosure to Insurer"
NCOIL Model §10 |
Mandates an exchange of
information between senior consumers and life
insurers. |
Informed consumers will
eliminate the STOLI problem by properly exchanging
information with insurance companies. Seniors who
know about their insurability and capacity make
better consumers. |
