A life settlement think tank is defending the value of the life settlement securitization concept.
The American Council of Life Insurers, Washington, asked Feb. 3 for policymakers to ban the securitization of life insurance policies sold in the secondary market. Packaging pools of life settlement transactions to back securities encourages stranger-originated life insurance and other forms of fraud, the ACLI says.
The Insurance Studies Institute, Keystone, Colo., an organization that includes a number of life settlement industry veterans on its staff, board and advisory board, has issued a declaration charging that the intention of the ACLI — and of the life insurance industry — "appears to be destruction of a vibrant secondary market for life insurance."
The ACLI statement is "a slap to all life insurance policyholders, particularly seniors," the ISI says. "Public policymakers should insist that consumers purchasing life insurance deserve the option a secondary market may provide."
