Life Companies, Agents Applaud North Dakota House Action to Halt Speculative Uses of Life Insurance
Bill Will Go To Governor John Hoeven For Signing
Contact
Lee Allen
Vice President of Communications and Marketing
703-770-8112
The American Council of Life Insurers (ACLI) and the National Association of Insurance and Financial Advisors (NAIFA) issued the following statement today in response to the passage by the North Dakota House of Representatives of S. 2268, a measure to restrict stranger-originated life insurance (STOLI) arrangements:
Washington, D.C., (March 27, 2007) – "The life insurance industry applauded the North Dakota House of Representatives for passing today by 75-to-18 vote a measure designed to prevent third-party investors and hedge funds from initiating the purchase of life insurance on elderly North Dakotans and from circumventing the intent of state insurable interest laws.
"The Senate, which passed a similar version in February of the legislation, S. 2268, is expected to concur with House-passed version. Gov. John Hoeven could sign the bill as early as next week.
"In these so-called stranger-originated life insurance arrangements, speculators who have no relationship to insured persons initiate coverage on older people and fund the premium payments for investment purposes. The legislation is designed to address stranger-originated life insurance effectively, while protecting life insurance taken out to benefit individuals, families, businesses and employees, as well as legitimate life settlements.
"The life insurance industry applauds the entire North Dakota House for passing S. 2268 and extends special congratulations to Rep. Jim Kasper, who sponsored the House bill; Sen. Jerry Klein, who sponsored the Senate version of the measure; and Insurance Commissioner Jim Poolman, who championed the measure as it moved through his state's legislature."
About ACLI: The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association whose 373 member companies account for 93 percent of the life insurance industry's total assets in the United States, 91 percent of life insurance premiums and 95 percent of annuity considerations. In addition to life insurance and annuities, ACLI member companies offer pensions, including 401(k)s, long-term care insurance, disability income insurance and other retirement and financial protection products, as well as reinsurance. ACLI's public Web site can be accessed at www.acli.com .
About NAIFA: Founded in 1890 as the National Association of Life Underwriters, the National Association of Insurance and Financial Advisors comprises 800 state and local associations representing the business interests of 225,000 members and their employees nationwide. Members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. NAIFA's mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members. NAIFA's website can be accessed at www.naifa.org.