As deputy superintendent for Life Insurance at DFS, he oversaw the regulation of more than 190 licensed life insurers and accredited reinsurers, 12 retirement systems, more than 350 charitable annuity societies and 23 life settlement providers
The life settlement provision will create new tax reporting requirements for life settlement transactions, and it will keep the life settlement providers
from treating the cost of life insurance premiums as an expense when computing capital gains taxes.
Eric has advised insurance companies, insurance brokers, insurance agents, premium finance lenders, life settlement providers
, and non-insurance entities regarding regulatory and licensing issues in various jurisdictions across the United States.
"Transparency is not great in this market and so it's difficult to determine the price of these transactions, the actual returns that investors are going to receive, and the returns that an end policy owner receives as opposed to what's received by the brokers or life settlement providers
That said, we've had relationships with life settlement providers
in the past, but we haven't found it to be a significant portion of our business.
In 2013, the top 15 life settlement providers
paid more than $362 million for unwanted life insurance policies valued at over $2.2 billion.
The New York Insurance Law requires that life settlement providers
and brokers provide consumers with an informational booklet that explains what a life settlement is, advocates that consumers consider all of their options and offers tips and questions to ask.
In the secondary market for life insurance, policyholders sell their contracts to life settlement providers
, which usually pass them on to investors or, in some cases, hold them on their own balance sheet.
Statewide, there are 16 approved life settlement providers
. A few of these providers work predominantly with large brokers.
* Started the process of licensing life settlement providers
under the state's first-ever life settlement law.
Life settlement brokers represent policy owners for a fee or commission and may solicit bids for policies from multiple life settlement providers
with the goal of obtaining the best price.
In life settlement contracts, investors buy from life settlement providers
insurance policies from policy owners for cash, ultimately receiving the policy benefits when the insureds die.