SOURCE: Life Insurance Settlement Association

September 04, 2007 10:50 ET

Threat to Commissionable Transactions to Be Discussed at LISA Producer Seminar

ORLANDO, FL--(Marketwire - September 4, 2007) - The Life Insurance Settlement Association (LISA) has expanded the September 24th Producer Seminar agenda to include a special session on the latest threat to insurance industry professionals: a proposed regulation mandating commission disclosure in certain insurance transactions. The Florida Office of Insurance Regulation (FLOIR) proposal suggests in complex fashion, that at the completion of any settlement transaction various documents would be required to be signed by a consumer which describe, in great detail, the compensation arrangements involved. FLOIR announced rule 690-204.101, titled "Disclosures to Viator of Disbursement," in late August and scheduled the Rule Development Workshop for September 11th.

LISA believes the proposal will inevitably lead to further efforts by the FLOIR to demand full disclosure of commissions in all insurance sales. "Frankly, I don't see where they draw the line. Where do they stop once they take on this issue without legislative authority?" questioned LISA Executive Director, Doug Head.

"This is a violation of the basic traditions of insurance sales practice. The assumption in this proposal is that compensation issues should be raised with consumers at the closing of a transaction. This is odd at best. I wonder if the FLOIR people have ever bought a car, a refrigerator, or a piece of clothing and then been presented with an itemized sales slip offering the cost of item, commission to sales person, and total?" asked Head. "In proposing this novel approach to certain insurance transactions," Head continued, "the FLOIR appears to be seeking authority which is clearly not granted by law. This is indeed a great leap."

Mr. Head strongly encouraged life insurance producers to utilize their respective industry associations to get involved and explain their views on this important issue. Head's encouragement comes as LISA plans to hold a broader conference for producers designed to educate industry professionals on the basics of the life insurance settlement industry. LISA is offering a reduced registration rate to Florida members of AALU and firm members of NAILBA.

"We want producers to be aware of this new threat to their basic business practices," concluded Executive Director, Head.

Established in 1994, the Life Insurance Settlement Association is the oldest and largest trade organization in the industry. Its goal is to promote the development, integrity, and reputation of the life settlement industry, and to promote a competitive market for the people it serves. LISA now represents 155 members with a wide variety of interests in the industry. For more about the Association, visit www.lisassociation.org.

Contact Information

  • Contact:
    Doug Head
    LISA Executive Director
    PH: 407-894-3797
    Email Contact