The New York State Insurance Department has posted language it would like life settlement providers to use to inform policy owners about their legal rights when selling their policies.
The model language, which the department suggests should be used in brochures provided to consumers by settlement firms, is available through a new section on life settlements that the agency has posted on its website.
The language, partly borrowed from a model developed by the National Association of Insurance Commissioners, Kansas City, Mo., suggests, among other things, that consumers be advised to ask their agent or insurance company about any cash value accumulated in their policy, and their option to gain access to some of that value, as an alternative to selling the policy.
