STOLI regs face changes
A committee of the National Association of Insurance Commissioners has proposed further limiting the use of stranger-originated life insurance.
A committee of the National Association of Insurance Commissioners has proposed further limiting the use of stranger-originated life insurance. The changes, approved last month by the life insurance and annuities committee of the Kansas City, Mo.-based association, would impose a five-year sales ban on a policy that is financed with the specific intent to sell it to investors. A two-year hold currently exists. The proposed amendments must still be voted on by the full association; state regulators would then decide whether to adopt the changes. For information, go to http://www.naic.org/Releases/2006_docs/viatical.htm
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