State Regulatory Requirements

Life settlements are generally regulated by state Insurance Departments. Some states have enacted statutes addressing the sale of all life insurance policies, while others only regulate the sale of life insurance policies for individuals with a life expectancy of less than 24 months. Still others do not regulate the transaction at all. Of the states that regulate the transaction, most require both the Broker (facilitator of the transaction) and Provider (purchaser of the policy) to be licensed.