LIFE INSURANCE SETTLEMENT

The Life Settlement Institute today announced that its support for the secondary market for life insurance includes those premium finance programs which utilize the secondary market value of life insurance to enable people with a true need for life insurance to tap into the market value of life insurance. These programs allow policyowners to acquire coverage which provides needed protection for their beneficiaries. The LSI made its announcement in response to questionable elements of certain new non-recourse premium finance programs which may violate insurable interest, usury, life settlement, premium finance, rebating or other insurance ...
WASHINGTON -- The Life Settlement Institute (LSI), the leading organization representing secondary market providers for life insurance, applauds recent federal and state legislative efforts aimed at stopping investor-initiated life insurance schemes that would misuse tax-exempt organizations for their own profit. With a retroactive effective date of May 3, 2005, the recent legislation announced by Senate Finance Chairman Charles Grassley and Senator Max Baucus, ranking member, further demonstrates that these abuses will not be tolerated.
The Grassley/Baucus legislation would impose a 100 percent excise tax on the acquisition costs of any "applicable insurance contract," ...