A new New York law seeks to protect seniors by regulating life settlement plans, which allow seniors to sell their life insurance for more than the value upon cancellation to get cash, reports The Washington Post.
The new law “will force health records associated with policies to remain confidential and will license operators, similar to what the state already does for other insurance-related companies,” the paper says.
The legislation also prohibits “stranger-originated life insurance” (STOLI), plans that have often resulted in investors targeting seniors. The investors get them to buy life insurance policies with large payoffs upon death for the purpose of selling policies to a company. The life settlement industry currently is regulated in 39 states.
Read more about the new New York law in The Washington Post.
View more ALFA Update articles!
Feedback
- Share your comments with the Assisted Living Federation of America on the new ALFA Blog, Re:source 2.0.
- Submit your comments using ALFA’s $LC:ACTIONFORM:-12:online contact form$.
- Email [email protected].
Other Resources
- Assisted Living Executive Magazine
- Assisted Living Publications and Resources
- Assisted Living Tool Kits and Webcasts
- Source for Senior Living
- Search for Senior Living Communities Nationally
