American Council of Life Insurers Regional Vice President of State Relations Curt Leonard issued the following statement on legislation that protects Florida seniors from stranger-originated life insurance transactions:

Washington, D.C. (June 30, 2017) — “The American Council of Life Insurers (ACLI) commends Florida Governor Rick Scott and the Florida legislature for enacting legislation (HB 1007) that protects seniors from a fraudulent use of life insurance called stranger-originated life insurance (STOLI).

“Under STOLI arrangements, speculators induce seniors to purchase life insurance policies they otherwise would not buy, for the sole purpose of transferring the death benefits to the speculators. The speculators aim to profit when the seniors die. The sooner they die, the higher the profit. Seniors caught up in these schemes can face unexpected tax liabilities, loss of privacy, inability to purchase life insurance for legitimate protection and estate planning needs, and possible legal liability.

“HB 1007 also includes important disclosure requirements that recommend seniors consult with an insurance or financial adviser before making changes to their life insurance policy. Seniors also are encouraged to contact the Florida Department of Financial Services website for more information.

 “Florida joins more than 30 other states that have enacted meaningful anti-STOLI legislation. ACLI encourages the remaining states to do the same.”

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 290 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing 94 percent of industry assets in the United States. Learn more at www.acli.com.