Yes, your state of residence does matter. The residence of the owner of the policy, not the insured, will typically determine the state jurisdiction for the life settlement transaction. For the vast majority of states, a life settlement transaction is regulated by each states department of insurance. In those states, the life settlement broker, if applicable, and the buyer (e.g., life settlement provider) of the life insurance policy must be licensed by that states insurance department. Also most states require all forms used in the transaction to be reviewed and approved to assure clarity and fairness. Regulated states have rules that the broker and buyer must follow, such as when the sale proceeds must be placed into an escrow account, and when the proceeds must be released to the seller after the transfer of ownership has been acknowledged by the carrier. In this way, the regulations protect the seller. The buyer of the policy, such as GWG Life, should be able to clearly outline the transaction process based on which state jurisdiction applies.
Posted on: Tue, 28 Oct 2014 15:00:01 +0000
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