‘Featured Blogs’ Archives
100 Years of
Life Settlements
by Peter Katz– On December 4, 1911, the United States Supreme Court decided the case of Grigsby vs. Russell, which is considered to be the legal basis for the life settlement industry today. The decision, written by the legendary Justice Oliver Wendell Holmes, Jr., ruled that the sale of a life insurance policy, which was validly obtained by [...]
Another Nail in STOLI’s Coffin
by Peter Katz, JD, CLU, ChFC In PHL Variable vs. Price Dawe 2006 Insurance Trust Insurance Company, the Delaware Supreme Court recently ruled that a life insurance policy issued to someone without insurable interest could be rescinded by the insurer even after the expiration of the two-year contestability period. Except for a few outliers with [...]
The Tax Treatment of Life Settlements Revisited
By Peter N. Katz In May of 2009, the IRS clarified its position on the tax treatment of life settlements by issuing Revenue Rulings 2009-13 and 2009-14. While Revenue Ruling 2009-14 deals only with the taxation of life settlement investors, Revenue Ruling 2009-13 deals with most everyone else who sells a policy. Both of these rulings contain some [...]
Good News from LISA Meeting by Peter Katz
LISA, the Life Insurance Settlement Association, recently held its annual spring meeting in Washington, D.C. As always, there was lots of useful information and a number of positive messages about the industry. Here are a few of the highlights: James J. Donelon, Louisiana Commissioner of Insurance and Vice-President of the NAIC (National [...]
Stoli on the Rocks?
by Peter Katz
The life insurance marketing scheme known as STOLI (Stranger Originated Life Insurance) appears to have taken its last breath. STOLI was usually sold under some sort of non-recourse or partial recourse financing arrangement in which elderly insureds were persuaded to obtain life insurance policies for investors, circumventing or violating [...]
Life Settlements
by Peter Katz
With the New Year under way, here are my observations and predictions for life settlements in 2011. As you will read, I am bullish on the industry and there will be increased opportunities to help clients participate in the secondary market for life insurance. Capital Continues to Return: The purchase of policies ramped up in the 4th quarter [...]
Medicare–Worth Noting By Steve Schulte
The Annual Open Enrollment Period for Medicare is November 15 through December 31. During this time Medicare eligible people may select or change a Medicare Advantage (MA) or Part D plan. Please note that this annual period will be changed to October 15 through December 7 in 2011. Unlike now and in previous years, Medicare eligibles will NOT be [...]
Kramer vs. Phoenix Close-Up by Peter Katz
In a recent decision, the New York Court of Appeals ruled that an insured could buy an insurance policy with the intent of transferring the policy to a third party without insurable interest. Although this ruling is important, there are some who mistakenly believe that the court has somehow endorsed STOLI (Stranger Originated Life [...]
Post Election Healthcare by Steve Schulte
The current election cycle has certainly muddied the perception of passed healthcare legislation in the public's mind. One might wonder (not to discount the effectiveness of the pervasive media filter) why most Democrats have been so reluctant to tout their significant accomplishment with the legislation, but also to urge that more needs to be [...]
Insurers Oppose Disclosure–Peter Katz
NCOIL (The National Conference of Insurance Legislators) is considering a model disclosure act that would require insurers to inform elderly insureds that are surrendering or lapsing a policy that alternatives, like a life settlement, exist. Similar laws have already been enacted in Washington, Maine, Oregon and Kentucky. The ACLI (American [...]
