Life Settlements in Alabama
While a number of states require licensing for processing life settlements, an Alabama life settlement transaction has yet to be legally regulated. A proposed Alabama life settlement bill has recently been rejected due to strong opposition based on model legislation suggested by the National Conference of Insurance Legislators.
Since Alabama lacks life settlement regulation, there are no legal restrictions preventing life insurance agencies and financial advisors from assisting their clients sell their policy in the secondary market. For states like Alabama that do not have life settlement regulations in place, the monitoring of transactions typically falls under the viatical laws of each individual state under supervision of departments and securities regulators.
Possible downfalls which have incited the need for Alabama life settlement regulation are unexpected tax liabilities, decreased access to insurance coverage, release of disclosed health information and even potential legal intervention. Proposed regulation clarifies these gray areas by requiring both clients and insurance agents to be made aware of these potential risks and enter into Alabama life settlements all-knowingly.
Once investing in an Alabama life Settlement, your first order of business is to educate yourself more in depth about the life expectancy reports which are the groundwork of any such life settlements since it estimates the profitability.