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Stranger-Originated Life Insurance: How The Naic Tamed An Old Dog With A New Trick, Adam S. Flood

Adam S Flood

This paper analyzes the efficacy of the National Association of Insurance Commissioners' recent attempt to reign in the practice of Stranger-Originated Life Insurance, focusing on industry counter-arguments that the regulations abrogate an individual's property right in one's insurance policy. To wit, it suggests that the NAIC's five-year settlement prohibition should be restated as a refutable assumption that entering into a life settlement within five years of policy issuance is evidence of a wagering policy.