SOURCE: Life Insurance Settlement Association

Life Insurance Settlement Association

February 24, 2011 11:53 ET

Settlement Association: New Public Awareness Program Toward Fraud Prevention

Life Insurance Settlement Association Develops Public Awareness Program for New York Consumers Who May Be Considering Life Settlement Transactions

ORLANDO, FL--(Marketwire - February 24, 2011) - The Life Insurance Settlement Association (LISA) announces the approval of a public awareness program for New York consumers who may be considering a sale of their life insurance policies. The New York State Insurance Department yesterday, approved LISA's consumer awareness program in accordance with New York's 2009 Life Settlement Act.

"We welcome the approval and very much appreciated the support the New York Insurance Department provided in developing our public awareness program," said Darwin Bayston, Executive Director of LISA (www.thevoiceoftheindustry.com). "LISA worked with the Insurance Department to provide an efficient and cost-effective alternative for our members to comply with the requirements of the law. The program ensures that consumers will receive consistent information."

The campaign consists of a web page on LISA's website (http://www.thevoiceoftheindustry.com/content/68/New-York-Public-Awareness.aspx), an approved consumer brochure that will be provided to New York life insurance policyowners who are considering a life settlement, and an informational brochure for life settlement professionals.

The consumer brochure, which is also available on-line, will be distributed throughout New York through the New York Office of Aging.

Among other things, information created for and disseminated through this campaign, explains life settlements and life settlement transactions, gives policyowners information on detecting and avoiding fraud, and provides consumers with information on how to contact the New York State Insurance Department.

"Life settlement companies have long had anti-fraud plans in place and have for years supported laws throughout the country that require approval of these plans by state insurance regulators," said Bayston. According to the most recent data from the National Association of Insurance Commissioners, there were only four consumer complaints reported to insurance departments nationally in the past three years. "The life settlement market's commitment to delivering value to life insurance consumers is only matched by the tremendous success LISA's member firms have demonstrated in protecting consumers in life settlement transactions." Bayston noted that life settlement companies are the first in the life insurance industry to provide such consumer awareness in New York. 

"Settlements are an important option for consumers that pay policyowners an average of four to five times more than the cash surrender value of a policy. Policyowners whose policies qualify for sale, rather than surrender, can take comfort in the fact that life settlement companies provide the highest levels of consumer protection in the entire life insurance marketplace."

Only licensed Life Settlement Providers who are members of LISA can participate in this public awareness campaign. Members who do participate in the New York program will receive credit from the New York State Insurance Department for their participation in the campaign.

About Life Settlements:
A life settlement is the sale of a life insurance policy by the policy owner to a licensed life settlement provider. The original owner is paid an amount that is greater than the cash surrender value that the owner could obtain from the insurer. It is a valuable alternative to the lapse or surrender of a policy. A life settlement is a regulated transaction under New York State law.

Contact Information

  • Contact:
    Darwin Bayston
    Executive Director
    Life Insurance Settlement Association
    407-894-3797
    Email Contact