House bill offers protection from insurance scams
July 2, 2008
COLUMBUS -- Ohio Department of Insurance Director Mary Jo Hudson commended the Ohio legislature for passing HB 404, which protects Ohio seniors by limiting Stranger-Originated Life Insurance transactions in the Ohio life insurance market.
"Ohio lawmakers have enacted solid amendments to the Ohio insurance code that recognize a shared responsibility of the life settlement industry, life insurance companies and the department to protect consumers against STOLI transactions," said Hudson. "I strongly believe that this bill will deter STOLI transactions from occurring in Ohio."
HB 404 amends the Ohio Viatical Settlement Act, which regulates the sale of life insurance policies to third-party investors and the companies involved in these transactions. The amendments provide the department with additional oversight authority over life settlement brokers and life settlement providers. The amendments also require life settlement brokers and life settlement providers to provide insurers with additional information prior to engaging in a life settlement. Life insurance companies are now required to ask specific questions to identify STOLI transactions and report them to the Department. Further, HB 404 requires a five-year waiting period in certain circumstances before an individual may settle a life insurance policy if the transaction includes certain elements that are not disclosed to the life insurers.
Source :http://www.thenews-messenger.com |
