North Dakota Statute Advances Stronger Stoli
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25 February 2009 Wednesday 03:38 PM EST
346 words
North Dakota Statute Advances Stronger Stoli
Sean P Carr
BISMARCK, n.a.
North Dakota House of Representatives unanimously approved a bill that would add new provisions to the law of the State on foreign life insurance, including protections for consumers and insurers life.
The bill, HB 1284, adds to the current law the definition of life Stoli institutions under the model law prepared by the National Conference of Insurance Legislators. He is co-sponsored by State Rep. George Keizer, R-Dist. 47. Keizer NCOIL is the Vice President.
North Dakota Stoli legislation adopted in 2007 based on a National Association of Insurance Commissioners model. HB 1284 to keep the five-year moratorium on the transfer of life insurance benefits to the death of investors for policies that have the characteristics of Stoli.
Under the NCOIL model, Stoli is identified as a fraudulent act. It is defined as a practice or plan to start a life insurance to a third party investor who, at the start of the policy has no insurable interest in the insured. Older people are often the target of such operations, which are often set up by fraud and pressure from the investor, and may violate insurable interest laws and leave the elderly and their beneficiaries vulnerable to unexpected taxes and fees, loss of privacy and other concerns.
American Council of Life Insurers President & CEO Frank Keating, in a statement, said Stoli is a "twisted misuse of life insurance.
The bill adds to consumer protection, including the definition and limitations on NCOIL premium financing. It provides insurance companies the opportunity to ask questions about a new insurance contract to help establish whether it is a Stoli potential transaction, "said spokesman Steven BROSTOFF ACLI.
The bill now goes to the state Senate.
According to lawyers specializing in life settlements, lawsuits filed by life insurers on Stoli transactions should increase, but they may face obstacles in trying to prove intent (BestWire, Oct. 23, 2008) .
(By Sean P. Carr, senior editor, BestWeek: Sean.Carr @ ambest.com)
26 February 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
Terms and Conditions Privacy Policy
25 February 2009 Wednesday 03:38 PM EST
346 words
North Dakota Statute Advances Stronger Stoli
Sean P Carr
BISMARCK, n.a.
North Dakota House of Representatives unanimously approved a bill that would add new provisions to the law of the State on foreign life insurance, including protections for consumers and insurers life.
The bill, HB 1284, adds to the current law the definition of life Stoli institutions under the model law prepared by the National Conference of Insurance Legislators. He is co-sponsored by State Rep. George Keizer, R-Dist. 47. Keizer NCOIL is the Vice President.
North Dakota Stoli legislation adopted in 2007 based on a National Association of Insurance Commissioners model. HB 1284 to keep the five-year moratorium on the transfer of life insurance benefits to the death of investors for policies that have the characteristics of Stoli.
Under the NCOIL model, Stoli is identified as a fraudulent act. It is defined as a practice or plan to start a life insurance to a third party investor who, at the start of the policy has no insurable interest in the insured. Older people are often the target of such operations, which are often set up by fraud and pressure from the investor, and may violate insurable interest laws and leave the elderly and their beneficiaries vulnerable to unexpected taxes and fees, loss of privacy and other concerns.
American Council of Life Insurers President & CEO Frank Keating, in a statement, said Stoli is a "twisted misuse of life insurance.
The bill adds to consumer protection, including the definition and limitations on NCOIL premium financing. It provides insurance companies the opportunity to ask questions about a new insurance contract to help establish whether it is a Stoli potential transaction, "said spokesman Steven BROSTOFF ACLI.
The bill now goes to the state Senate.
According to lawyers specializing in life settlements, lawsuits filed by life insurers on Stoli transactions should increase, but they may face obstacles in trying to prove intent (BestWire, Oct. 23, 2008) .
(By Sean P. Carr, senior editor, BestWeek: Sean.Carr @ ambest.com)
26 February 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
Terms and Conditions Privacy Policy
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