Approximately 100 years ago U.S. Supreme Court Justice Oliver Wendell Holmes Jr. started life settlement regulations
by writing an opinion that a life insurance policy was a person’s property and could be sold. Today this practice has grown into what is now known as the Life Settlement Industry. As with most business environments, regulations have been created to protect all parties in these transactions.
One of the big areas of concern in Life Settlement Regulations is whether an insurance agent should offer the option of a life settlement to one of their customers. Many insurance companies do not want agents discussing life settlements with their clients and have gone so far as to ban them from having such discussions. Currently most states do not require agents to offer a life settlement as an option but hopefully more will begin to require this option in the spirit of full disclosure to an agent’s customer.
The reasons insurance companies do not want a life settlement option disclosed are becoming less clear as legislation brings the life settlement market under regulators control with lie settlement regulations. Currently more than 80 percent of the nation is regulating life settlement transactions in one form or another, hopefully a requirement for full disclosure of an insured’s options will come along soon giving people a much needed option to sell their property.
For more information on how to Life Settlement Regulations please visit LIVEpdq.