This transparency of commissions received by brokers is brought on by the desire, “to promote thorough disclosure to prevent abuses from occurring and to prevent commissions paid to an initiating agent from being out of line, said LISA Executive Director Doug Head.” Putting a cap on broker compensation is an idea being talked about among life settlement industry players.
A Life and/or Viatical settlement is the sale to a third party of an existing life insurance policy for more than its cash surrender value but less than its net death benefit. This definition comes from the LISA website.
Life settlements are a relatively new financial option to life insurance owners. I will be writing more about life settlements in future posts.
If you are an agent involved in life settlements let us know your feelings about setting a cap on compensation
i am interested in knowing if there is any regulatory action currently involving the brokers that are writing life policies on wealthy individuals with the express intent to see said policies after issue...with the upfront knowledge and cooperation of the insured.
Posted by: Paul | February 1, 2007 8:51 AM | Permalink to Comment