Category: Legislative Updates

New legislation requires insurance companies to inform policy holders about their options

BY: LIFE INSURANCE SETTLEMENTS, INC. · JULY 6, 2017 On June 26th, 2017, Florida Governor Rick Scott signed legislation (HB 1077) into law that will require insurance companies to inform policy holders that they can receive additional information about ALL of their options, as it relates to their life insurance policy. This law basically paves the way for a policy holder to learn that he or she may be able to sell their policy in the secondary marketplace for more money. In most cases, a lot more money than simply surrendering their policy, or worse yet, letting it lapse. This is a major event for consumer disclosure in our country because Florida has the highest percentage of senior citizens among its population. Every year, millions and millions of dollars of life insurance death benefit/face value is lapsed or surrendered by thousands of policyholders, who obviously didn’t realize there was another option or that it had additional value. This law should help to rectify this trend and give seniors more money to improve their lives, whether it helps provide money for LTC, housing, medical costs or simply to ease the daily burden of living on a fixed income. According to the Government Accountability Office’s 2010 report on the life settlement industry, an average policyholder can expect to receive an average settlement that is seven times greater than the its current...

Read More

Carrier Announcements Regarding Actuarial Guideline 49

Carrier Announcements Regarding Actuarial Guideline 49: IUL Illustration Changes On September 1, 2015 the first phase of AG 49 will take effect enforcing new restrictions on maximum illustrated rates of Indexed Universal Life products.  All companies will use the same benchmark based on S & P 500 annual point to point performance to calculate maximum illustrative rates for individual products and index strategies based on their specific segment caps, floors, and participation rates.  In March of 2016, additional regulations will be implemented regarding participating policy loan illustration and supplementary alternative disclosures included in the full illustration package. Please click here for more details. See below for individual carrier announcements and illustration rate changes. Accordia Allianz American General American National AXA Genworth John Hancock Lincoln National Minnesota Life Nationwide North American Principal Protective Prudential Transamerica Voya...

Read More