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Associated Press - November 26, 2009 11:05 AM ET
ALBANY, N.Y. (AP) - A new law seeks to protect consumers by regulating the new and growing field of "life settlements" - a transaction where the elderly sell their life insurance policies for far more than the surrender value to get cash, often to stave off hard times.
State Sen. Neil Breslin says the field has been a billion dollar industry without regulation. The law signed by Gov. David Paterson last week requires numerous disclosure and consumer protection provisions to ensure that a policy owner makes an informed decision before selling a policy.
The industry supports the measures. The Life Insurance Settlement Association says they offer an increasingly popular product for the elderly who can get three to four times more than an insurance company would pay.
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