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Life Insurance Finance Association Hosts Webinar to Discuss NAIC Viatical Law.

Model Act Harmful to Consumer Rights; LIFA Calls on NAIC to Withdraw and Re-Draft Act

ATLANTA -- In response to the National Association of Insurance Commissioners' (NAIC) decision to re-adopt the changes to the Viatical Settlements Model Act and upcoming National Conference of Insurance Legislators (NCOIL) meetings, the Life Insurance Finance Association (LIFA) will host a webinar on April 17 at 10 a.m. PT to discuss the impact of this model, the potential for adoption in the states and the role of the NCOIL.

"The actions taken by the NAIC threaten the existence of many insurance-related businesses and take away consumer rights," said Scott Cipinko, executive director, LIFA. "We encourage all who are involved in the industry to attend the LIFA webinar to learn how this decision could potentially impact the industry and how they might influence future decisions."

Cipinko added that the problem is, whether through carelessly overbroad scope or through opportunistic overreaching, most of the proposed remedies offered to the problem of stranger-initiated life insurance are so broad that they end up prohibiting or severely limiting legitimate life insurance premium-finance transactions and thereby harming the consumers they were trying to protect. Restricting the availability of proper life insurance premium-finance loans does a tremendous disservice to consumers and everyone else involved in the creation and maintenance of this valuable product.

"NCOIL will be meeting again in the next few months; however, the NAIC action was taken prior to the meeting and despite the NCOIL vote telling NAIC not to accept the proposal," said Cipinko. "As a result of the situation raised by the inability or refusal of the NAIC committee to fully discuss the model and once again rushing the judgment, LIFA will hold a webinar Tuesday, April 17 to give the life insurance-finance industry a voice in the matter."

Further, LIFA will discuss ongoing litigation and other related matters during the webinar. The cost to attend the webinar is $195 per person. The webinar registration fee can be put toward membership to LIFA if registrants sign up for an annual membership costing $1,000 at the time of registering for the webinar. Most major credit cards will be accepted as a form of payment. To register for the event, contact Angie Robert at arobert@lifefirms.com or 858/576-8067. For more information regarding LIFA's position on these issues, contact Cipinko at 678/858-4001 or scipinko@lifaorg.org.

The Life Insurance Finance Association is a nonprofit, professional trade association and its members are comprised of individuals and companies involved in the life insurance premium finance industry. LIFA was founded to provide an open dialogue between and among life insurers, premium finance lenders, life insurance agents, brokers and insurance regulators, to provide consumer advocacy, and to foster a better understanding among participants in the life insurance and premium finance marketplace, state and federal policy makers, and the general public. For additional information, visit www.lifaorg.org.
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Publication:Business Wire
Date:Apr 6, 2007
Words:486
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