Recent Developments in the Life Settlement Industry
June 8, 2012
The Delaware General Assembly is considering new legislation to address a contentious issue in the life settlement industry. A recent proposal would require a life insurance company that rescinds an insurance policy on the grounds that the policy holder lacked an insurable interest to refund the premiums that the insurer has collected from the owner of the rescinded life insurance policy. This update discusses proposed Senate bill, which would codify the Delaware common law with the stated goal of protecting investors in the secondary market for life insurance in Delaware.