The question was: Four states have enacted laws that require insurers to notify policy owners that the owners have alternatives to cashing out, accelerating or lapsing their life policies. Which of the following are the four states?
a) Washington, Illinois, Idaho, and Florida
b) Oregon, Florida, Nevada and Mississippi
c) Maine, Rhode Island, Texas, and Nevada
d) Ohio, Georgia, Indiana, and California
e) Washington, Oregon, Maine, and Kentucky
The answer is: e). Washington, Oregon, Maine and Kentucky are the four states that have laws requiring life insurers to notify policy owners that the owners have alternatives to cashing out, accelerating or lapsing their life policies. The disclosure provisions contain slightly different wording, but settlement executives point out that each law is phrased in such a way as to require that life settlements be mentioned as one of the alternatives.
