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Updated NCOIL Resolution Provides a Win for the Life Settlement Industry
The National Council of Insurance Legislators (NCOIL) has updated its Life Settlements Model Act to streamline life settlement transactions. The amendments mandate that life insurance companies accept electronically delivered requests for verification of coverage and promptly confirm changes in policy ownership or beneficiaries via electronic means. These changes aim to reduce administrative delays and enhance efficiency in the life settlement process.This is a win for the industry and another example of the pivotal role that LISA plays in the fostering transparency and efficiency within the life settlement industry.
"The secondary market for life settlements is growing over time, in terms of the number of policies transacted and face value. But far too frequently, we have had situations where the policyholder decided not to sell because they were frustrated with the process," said John Dallas, LISA Board Chair and CEO of Berkshire Settlements, to Life Risk News. "These amendments should reduce these situations where a transaction falls away, meaning that more American seniors will realize the benefit of the life settlement market."
The Life Insurance Settlement Association (LISA) played a pivotal role in advocating for these updates. By collaborating with NCOIL, LISA ensured that the revisions address industry challenges, particularly those related to outdated administrative procedures. LISA's efforts have been instrumental in modernizing the regulatory framework, thereby facilitating smoother transactions and promoting greater transparency within the life settlement market.
These developments are expected to benefit policy owners and investors by expediting processes and reducing bureaucratic hurdles, reflecting a significant advancement in the life settlement industry's operational standards.
For more information, read this article from Life Risk News.