Amended Life Settlements Model Act Unanimously Adopted By NCOIL

After 16 months of debate, the National Conference of Insurance Legislators (NCOIL) has adopted an amended Life Settlements Model Act (Model Act). The Model Act was unanimously adopted during NCOIL's Annual Meeting in November. First adopted in November 2000 and last updated in July 2004, the Model Act "is a targeted attempt to prohibit controversial stranger-originated life insurance (STOLI) transactions while encouraging legitimate life settlements."¹ Although the Model Act and the amended Viatical Settlements Model Act adopted earlier this year by the National Association of Insurance Commissioners (NAIC) have similar objectives, there are several substantive differences between the two model acts.