Florida Insurers, Agents Oppose Legislative Effort to Promote 'STOLI'

[lifesettlementadvisor]

Something tells me there will be easily found records that show the seniors intention to sell the policy two years later.

Very few seniors are going to buy a policy and hope and pray that you buy it from them in two years and reimburse them for all those premiums and also pay them. They are going to want some kind of contract upfront, which will then make the policy fraud.
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They ask if you intend to in the next two or three years, usually. No idea if a policy has ever been contested over it, so no telling how the courts have sided on this, or if settlements were made to avoid court.

Life Settlement buyers have moved away from policies where the agents and seniors take the file out with the intent to sell it two years down the road. These files, in general, do not price well anyways.

A life settlement is a tool for agents to keep and offer clients who have an unwanted policy, not a scheme for everyone to make a lot of money, those days are gone.

And there are no upfront contracts in the life settlement space. Those days are gone. The large capital sources have no interest in gaming the system. Returns are high doing it the right way.

If anything, this tread shows where the life settlement industry has really failed. There is bad education in the market and agents on the front line do not fully understand what is going on in the life settlement market. Hopefully the broker channel sees this and starts better educating the agent channel.

 

[VolAgent]

Life Settlement buyers have moved away from policies where the agents and seniors take the file out with the intent to sell it two years down the road. These files, in general, do not price well anyways.

A life settlement is a tool for agents to keep and offer clients who have an unwanted policy, not a scheme for everyone to make a lot of money, those days are gone.

And there are no upfront contracts in the life settlement space. Those days are gone. The large capital sources have no interest in gaming the system. Returns are high doing it the right way.

If anything, this tread shows where the life settlement industry has really failed. There is bad education in the market and agents on the front line do not fully understand what is going on in the life settlement market. Hopefully the broker channel sees this and starts better educating the agent channel.

That will kill it.

Life Settlement Agent. "So, Mr. Smith, we're going to fill out this application to get you $1 million in life insurance. Then we are going to sell it two years later. Just write out a check to XYZ life for $10,000."

Mr Smith. "Ok.. So, why do I have to pay XYZ, can't the hedge fund just pay them?"

Agent. "Well, they can't do that for two years, otherwise XYZ won't issue the policy."

Mr. Smith. "Alright, so give me something in writing that the hedge fund is going to buy the policy and pay me my money back."

Agent. "They won't do that. But don't worry, they'll buy it in two years."

Mr. Smith. "You can leave now."

 

[tlmarketing]

That will kill it.

Life Settlement Agent. "So, Mr. Smith, we're going to fill out this application to get you $1 million in life insurance. Then we are going to sell it two years later. Just write out a check to XYZ life for $10,000."

Mr Smith. "Ok.. So, why do I have to pay XYZ, can't the hedge fund just pay them?"

Agent. "Well, they can't do that for two years, otherwise XYZ won't issue the policy."

Mr. Smith. "Alright, so give me something in writing that the hedge fund is going to buy the policy and pay me my money back."

Agent. "They won't do that. But don't worry, they'll buy it in two years."

Mr. Smith. "You can leave now."

That conversation is close but instead of giving something in writing, the agent said that a trust was being formed instead and you mr consumer will make this trust the owner and bene...after the policy is issued...we will then take over the beneficial interest of the policy and pay you 10% of the face now and pay you more in 2 years when...i mean if you decide to sell it.

 

[lifesettlementadvisor]

That will kill it.

Life Settlement Agent. "So, Mr. Smith, we're going to fill out this application to get you $1 million in life insurance. Then we are going to sell it two years later. Just write out a check to XYZ life for $10,000."

Mr Smith. "Ok.. So, why do I have to pay XYZ, can't the hedge fund just pay them?"

Agent. "Well, they can't do that for two years, otherwise XYZ won't issue the policy."

Mr. Smith. "Alright, so give me something in writing that the hedge fund is going to buy the policy and pay me my money back."

Agent. "They won't do that. But don't worry, they'll buy it in two years."

Mr. Smith. "You can leave now."

Guys - those days are over. If this scenario is still going on, in 2 years the policy would not trade on the life settlement market and the agent would have to go back to the insured and tell them their scheme failed.

 

[JimYoung]

Controversial Life Insurance Policies Draws Crackdown From States - WSJ.com

Here's another one. Can life insurance companies really null and void policies after the 2 year incontestability period?

 

[tins]

Controversial Life Insurance Policies Draws Crackdown From States - WSJ.com

Here's another one. Can life insurance companies really null and void policies after the 2 year incontestability period?

In cases of fraud, I would think so.

 

[VolAgent]

Controversial Life Insurance Policies Draws Crackdown From States - WSJ.com

Here's another one. Can life insurance companies really null and void policies after the 2 year incontestability period?

One word, fraud. (sales filler)

 

[moonlightandmargaritas]

Can life insurance companies really null and void policies after the 2 year incontestability period?

Sure they try - but it's really tough to prove that the insured intended to defraud the insurance company at the time of application - not to mention the lack of sympathy from juries. Tough row to hoe.

 

[JimYoung]

Can these crooked life agents go to prison for this?? I'm relatively new to the industry and must say, I'm pretty sick after hearing this stuff and this gives insurance agents a bad rep...

 

[lifesettlementadvisor]

Yes the agents can and do go to jail for this.