Man Hit by Bullet at Cemetery
By: Jerry Brown
Pedestrian Hit
By: Amy Hoyt
Local Teachers Campaign Against Budget Cuts
Source: Diana Bosch
Officers Needed For Cedar Grove
By: Audrey Adair
South Walton High School Mourns Loss of Student
By: Erin Hawley
Update: Name of Fire Victim Released
Source: Marianna Police Department
Springfield Aims to Save Elementary School
By: Jessi Chapin
EDA Announces Resignation of Executive Director, Wright Appointed as Interim Director
Source: Bay County Economic Development Alliance
Quadruple Murder Suspect to Appear in Court
By: Heather Kretzer
Walton County Teen Remembered
Source: Clary-Glenn Freeport Chapel Funeral Home
For Additional Headlines - go to our News Section »
- Taunton Family Children's Home Fire
made by heatherg - High School Car Crash Victim Dies
made by AJ4U - Florida Lottery Millionaire Raffle
made by AJ4U - Florida Lottery Millionaire Raffle
made by elmoofgawf - Florida Lottery Millionaire Raffle
made by concernedcitizen - High School Car Crash Victim Dies
made by concernedcitizen - Taunton Family Children's Home Fire
made by 216.250.166.120 - Boating Accident Leaves One Injured, One Dead
made by Vampwolfenher - Boil Water Notice Problems
made by Vampwolfenher - New Health Laws
made by retired one
- Florida Lottery Millionaire Raffle
- Taunton Family Children’s Home Fire
- Boating Accident Leaves One Injured, One Dead
- Domestic Dispute Turns Into Shooting
- High School Car Crash Victim Dies
- 3 Girls Crash Car into Tree
- Bay County Boil Water Notice Lifted
- Walton County Teen Remembered
- Florida Powerball
- Boil Water Notice Problems
A relatively new type of life insurance that is targeted at seniors is getting a close look from Florida insurance regulators.
It’s called “stranger-owned” life insurance, or STOLI.
The way it works is that an investor or “stranger” takes out a significant life insurance policy on an older person. The investor then pays the premiums and eventually becomes the beneficiary of the policy--usually after a couple of years.
In addition to paying the premiums, the investors also offer cash bonuses and pay the policyholder a lump-sum payment in exchange.
Critics say “stranger-owned” life insurance is nothing more than a scheme by speculators to make big money off the elderly.
Under current state law, people are allowed to sell their life insurance policies. State regulators admit selling a policy can be helpful for people like those with terminal illnesses.
However, the law says that when a life insurance policy is purchased, the person must have an interest in the person insured.
Insurance industry representatives say “stranger-owned” policies are usually done in private which makes it tough to regulate.
The state has concerns and is taking a look at the practice.
The state Office of Insurance Regulation held a hearing on stranger-owned life insurance. Officials are gathering information to decide whether new laws are needed to regulate the practice.
About a dozen states have already passed laws to crack down on those who sell stranger-owned life insurance policies.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
This entry has been viewed 1296 times.
WMBB.com requires that you be a registered site member to post comments and content.
First, we are not being sneaky and gathering your email or other information to sell to telemarketers or e-mail spam companies.
Registration on this site is required simply to allow us to keep people who would post discriminatory, threatening and harassing messages and comments from doing it again.
By having user registration, we hope to provide you with a better user experience. Please view WMBB.com's full Terms & Conditions