Male   Female
  • Why is stranger-oriented insurance an opportunity for fraud?
  • May 7, 2010
  • stranger owned annuities legalBy Life Quotes, Inc.

    Investors may be able to receive significant profits through purchasing an elderly or ill individual’s life insurance policy through a life settlement.

    They may also benefit through selling variable annuities. Individuals who sell these assets through a stranger-originated transaction, however, may be targeted by fraud, according to the Life Insurance Settlement Association.

    Insurance agents involved in these schemes will seek terminally ill individuals to sell an annuity for a value so small it falls below underwriting requirements. Still, this amount is subject to growth and can provide the agent with profit at the time of the policyholder’s death.

    “There is no reasonable circumstance that would justify an insurance company issuing an annuity to someone who is terminally ill or in severely poor health,” said Russel Dorsett, president of LISA.

    LISA is currently urging other organizations, like the National Association of Insurance Commissioners and the National Conference of Insurance Legislators, to combine efforts in order to ban stranger-originated annuity transactions. Organizations should also be required to evaluate an individuals health before selling him or her an annuity, according to the release.

  • Category: Industry News, Life Insurance, Most Popular, Videos

Leave a Reply

Archives

About

Consumer Insurance Guide SM provides a wide selection of originally-authored articles and expert advice targeted to the self-directed insurance shopper. Our mission is to provide consumers with useful, money-saving information on all things having to do with making sound insurance purchase decisions.

Consumer Insurance Guide SM is owned by Life Quotes, Inc. 8205 South Cass Avenue, Darien, IL. For editorial, content feeds, advertising and lead purchase opportunities, contact Robert Bland at bob@lifequotes.com.

Originally founded in 1984 as Quotesmith Corporation, Life Quotes, Inc. owns and operates www.consumerinsuranceguide.com and www.lifequotes.com, two online consumer insurance information services that cater to the needs of self-directed personal and corporate insurance shoppers.

About Us  |   Contact Us  |   Press Releases  |   The Best Privacy Policy  |   Life Insurance  |   Careers
For Agents & Brokers  |   Site Map  |  


Copyright ©1984-2015 Life Quotes, Inc., 8205 South Cass Avenue, Suite 102, Darien, Illinois. Life Quotes, Inc. and certain of its personnel are licensed as insurance agents, brokers or producers in all states. CA agent #0A13858, LA agent #200696, MA agent #333509159. dba Life Quotes Insurance Services in CA under agent #0827712, in LA under agent #205078. dba Life Quotes Insurance Services, Inc. in UT under agent #90093. All rights reserved. Telephone (630) 515-0170. Founded 1984.
10.1.1.86