Regulations
V.B. Bhuyan & Co. LLC welcomes regulation to the secondary life insurance market. Increased regulation will allow for a greater degree of transparency in regards to transactions and will insulate policy sellers from unscrupulous individuals. Regulation and monitoring will also protect consumers by requiring all market participants to adhere to strict personal information guidelines.
Below is a map representing states where life settlements are regulated
Insurable interest is the driving principle of life settlements & the basis of the secondary market. An oversimplified explanation of insurable interest is outlined below.
The beneficiary of a life insurance policy must have some relationship to the insured
by blood or by law.
by blood or by law.
The beneficiary of a life insurance policy must have an economic interest in having
the life, health, bodily safety of the insured continue
the life, health, bodily safety of the insured continue
If a policy owner is also the insured, then that person is said to have unlimited insurable interest in his or her own life, and may designate any third party to be the beneficiary of the policy with, or without insurable interest.
If a Policy owner is not the insured, then the owner of the policy must have insurable interest in the insured's life. Thusly, Jane Doe may viably purchase a life insurance policy on both her parents or her business partner.
If a Policy owner is not the insured, then the owner of the policy must have insurable interest in the insured's life. Thusly, Jane Doe may viably purchase a life insurance policy on both her parents or her business partner.
