Regs are delayed on betting your life
The National Association of Insurance Commissioners has delayed a vote on its proposal to further limit the use of stranger-owned life insurance, according to published reports.
The National Association of Insurance Commissioners has delayed a vote on its proposal to further limit the use of stranger-owned life insurance, according to published reports. The proposed changes, approved by a committee of the Kansas City, Mo.-based association, would impose a five-year sales ban on a policy financed with the specific intent to sell it to investors.
A two-year hold currently exists. The vote is delayed because commissioners want to assure that the modified STOLI model won’t violate federal law. Even if the association ends up approving the changes, state regulators would have to decide whether to adopt the changes.
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