ACLI Calls For Life Settlement Securitization Ban
Submitted by Kathleen McGrath on Fri, 02/05/2010
The ACLI, Washington, has put out a policy statement asserting that packaging life insurance settlements into securities increases the risk of fraud, by encouraging securitizers to lure seniors into participating in illegal, stranger-originated life insurance transactions; by encouraging seniors to help file fraudulent STOLI applications; and by encouraging investors to buy life settlement-backed securities without understanding the risks involved.
UPDATE: Check out Settlement Execs Blast ACLI Comment.
http://www.lifeandhealthinsurancenews.com/News/2010/2/Pages/ACLI-Calls-F...
