The Delaware life settlement regulations have imposed an insurable interest act earlier this year. They went a little further and included a personal insurance caveat basically stating that a legally competent person can obtain an insurance policy on their own life for the benefit of any person, but no other person can effectively pursuade or obtain an insurance policy on another individual unless the benefits can be reasonably proven to have an insurable interest in the insured.
The Delaware life settlement codes also require agents, brokers, providers and funding companies to be fully licensed within their state. The may also be required to maintain bi-annual certifying educational credits.
The Delaware life settlement rules also require confidential reporting to certain state insurance commissioners departments. Licensed agents and brokers must also provide certain levels of compensation disclosure. Proceeds to the seller must be transparent showing fee’s, commissions and other payouts associated with a settlement transaction.
The commissioner for the Delaware settlement market must also be given full authority to establish standards which must be met by all agents and brokers, request bonding for non-domiciled providers and regulate certain discounts for all levels of the settlement exchange.
To stay current with state by state regulations and to find out how to properly navigate the settlement market, visit our LIVEpdq webcast for more information.