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Ioli
Stranger-originated life insurance ("STOLI") generally means any act, practice, or arrangement, at or prior to policy issuance, to initiate or facilitate the issuance of a life insurance policy for the intended benefit of a person who, at the time of policy origination, does not have an insurable interest in the life of the insured under the laws of the applicable state.See, e.g., New York Insurance Law section 7815 This includes the purchase of life insurance with resources or guarantees from or through a person that, at the time of policy initiation, could not lawfully initiate the policy; an arrangement or other agreement to transfer ownership of the policy or the policy benefits to another person; or a trust or similar arrangement that is used directly or indirectly for the purpose of purchasing one or more policies for the intended benefit of another person in a manner that violates the insurable interest laws of the state. The main characteristic of a STOLI transaction is th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Life Insurance
Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ... between an insurance policy holder and an insurance , insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policyholder typically pays a premium, either regularly or as one lump sum. The benefits may include other expenses, such as funeral expenses. Life policies are legal contracts and the terms of each contract describe the limitations of the insured events. Often, specific exclusions written into the contract limit the liability of the insurer; c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insurable Interest
In insurance practice, an insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence, without repairment or damage, of the insured object (or in the case of a person, their continued survival). An "interested person" has an insurable interest in something when loss of or damage to that thing would cause the person to suffer a financial or other kind of loss. Normally, insurable interest is established by ownership, possession, or direct relationship. For example, people have insurable interests in their own homes and vehicles, but not in their neighbors' homes and vehicles, and almost certainly not those of strangers. This is what separates the insurance business from gambling. The "factual expectancy test" and "legal interest test" are the two major concepts of insurable interest. History The concept of insurable interest as a prerequisite for the purchase of insurance and distanced the insurance business from gambl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Life Settlements
A life settlement or viatical settlement (from Latin ''viaticum'', something received before death) is the sale of an existing life insurance policy (typically of seniors) for more than its cash surrender value, but less than its net death benefit, to a third party investor. Such a sale provides the policy owner with a lump sum. Following the Tax Cuts and Jobs Act of 2017, proceeds up to the total amount of premiums paid over time are tax free, and proceeds more than the tax basis up to the amount of the policy's surrender value are taxed as ordinary income. Proceeds in excess of the surrender value are taxed as capital gains. In 2020, the Senior Health Planning Account Act (HR 5958) was introduced in the U.S. House of Representatives. It would allow seniors to pay for health care costs using tax-exempt proceeds from the sale of their life insurance. It was reintroduced in 2021. According to a 2023 study by a life settlement industry group, policyholders received approximately $ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insurance Fraud
Insurance fraud is any intentional act committed to deceive or mislead an insurance company during the application or claims process, or the wrongful denial of a legitimate claim by an insurance company. It occurs when a claimant knowingly attempts to obtain a benefit or advantage they are not entitled to receive, or when an insurer knowingly denies a benefit or advantage that is due to the insured. According to the United States Federal Bureau of Investigation, the most common schemes include premium diversion, fee churning, asset diversion, and workers compensation fraud. False insurance claims are insurance claims filed with the fraudulent intention towards an insurance provider. Fraudulent claims account for a significant portion of all claims received by insurers, and cost billions of dollars annually. Insurance fraud poses a significant problem, and governments and other organizations try to deter such activity. Studies suggest that the greatest total dollar amount of frau ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
New York State Insurance Department
The New York State Insurance Department (NYSID) was the state agency responsible for supervising and regulating all insurance business in New York State.[History, About Us, New York State Department of Financial Services, retrieved on March 5, 2012, at http://www.dfs.ny.gov/about/history.htm New York State Department of Financial Services website] It was regarded in the industry as one of the most state-of-the-art insurance regulatory agencies. Continuing education for insurance professionals is regulated by each state's Department for Insurance, although there are commonalties across the states. See Insurance Continuing Education. Effective October 3, 2011, Governor Andrew Cuomo and the New York State Legislature consolidated the New York State Insurance Department and the New York State Banking Department and created the New York State Department of Financial Services.Part A of Chapter 62 of the Laws of 2011 History Until 1849, insurance companies doing business in New York St ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
New York State Department Of Financial Services
The New York State Department of Financial Services (DFS or NYSDFS) is the department of the New York state government responsible for regulating financial services and products, including those subject to the New York insurance, banking and financial services laws. History As part of the 2011 state budget, Governor Andrew M. Cuomo and the New York State Legislature consolidated the New York State Insurance Department and New York State Banking Department">istory, About Us, New York State Department of Financial Services, retrieved on March 5, 2012 ... and New York State Banking Department and created the New York State Department of Financial Services effective October 3, 2011. The purpose of consolidating the agencies and creating the Department of Financial Services was to modernize regulation by allowing the agency to oversee a broader array of financial products and services, such as service contract providers. Supervision The department supervises approximately 4400 enti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Internal Revenue Service
The Internal Revenue Service (IRS) is the revenue service for the Federal government of the United States, United States federal government, which is responsible for collecting Taxation in the United States, U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law. It is an agency of the United States Department of the Treasury, Department of the Treasury and led by the Commissioner of Internal Revenue, who is appointed to a five-year term by the President of the United States. The duties of the IRS include providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs, including the Affordable Care Act. The IRS originates from the Commissioner of Internal Revenue, a federal office created in 1862 to assess the nation's first income tax to fund the American Civil War. The temporary measure funded over a fifth of the Union's war expens ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Insurance Agents
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured. The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of a payment to the insurer (a premium) in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms. Furthermore, it usually involves something in which the insured has an insurable interest established by o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Extortion
Extortion is the practice of obtaining benefit (e.g., money or goods) through coercion. In most jurisdictions it is likely to constitute a criminal offence. Robbery is the simplest and most common form of extortion, although making unfounded threats in order to obtain an unfair business advantage is also a form of extortion. Extortion is sometimes called the " protection racket" because the racketeers often phrase their demands as payment for "protection" from (real or hypothetical) threats from unspecified other parties; though often, and almost always, such "protection" is simply abstinence of harm from the same party, and such is implied in the "protection" offer. Extortion is commonly practiced by organized crime. In some jurisdictions, actually obtaining the benefit is not required to commit the offense, and making a threat of violence which refers to a requirement of a payment of money or property to halt future violence is sufficient to commit the offense. Exaction ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Life Assurance Act 1774
The Life Assurance Act 1774The citation of this Act by this short title was authorised by the Short Titles Act 1896, section 1 and the first schedule. Due to the repeal of those provisions it is now authorised by section 19(2) of the Interpretation Act 1978. ( 14 Geo. 3. c. 48, also known as the Gambling Act 1774) was an Act of Parliament of the Parliament of Great Britain, which received royal assent on 20 April 1774. The Act prevented the abuse of the life insurance system to evade gambling laws. It was extended to Ireland by the Life Insurance (Ireland) Act 1866, and is still in force. Prior to the Act, it was legally possible for any person to take out life insurance on any other person, regardless of whether or not the beneficiary of the policy had any legitimate interest in the person whose life was insured. As such, the system of life insurance provided a legal loophole for a form of gambling: an insurance policy could be taken out on an unrelated third party, stipulati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Services Authority
The Financial Services Authority (FSA) was a quasi-judicial body accountable for the regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investments Board (SIB) in 1985. Its board was appointed by the Treasury, although it operated independently of government. It was structured as a company limited by guarantee and was funded entirely by fees charged to the financial services industry. Due to perceived regulatory failure of the banks during the 2008 financial crisis, the UK government decided to restructure financial regulation and abolish the FSA. On 19 December 2012, the Financial Services Act 2012 received royal assent, abolishing the FSA with effect from 1 April 2013. Its responsibilities were then split between two new agencies: the Financial Conduct Authority and the Prudential Regulation Authority of the Bank of England. Until its abolition, Lord Turner of Ecchinswell was the FSA's chairman an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Life Settlement
A life settlement or viatical settlement (from Latin ''viaticum'', something received before death) is the sale of an existing life insurance policy (typically of seniors) for more than its cash surrender value, but less than its net death benefit, to a third party investor. Such a sale provides the policy owner with a lump sum. Following the Tax Cuts and Jobs Act of 2017, proceeds up to the total amount of premiums paid over time are tax free, and proceeds more than the tax basis up to the amount of the policy's surrender value are taxed as ordinary income. Proceeds in excess of the surrender value are taxed as capital gains. In 2020, the Senior Health Planning Account Act (HR 5958) was introduced in the U.S. House of Representatives. It would allow seniors to pay for health care costs using tax-exempt proceeds from the sale of their life insurance. It was reintroduced in 2021. According to a 2023 study by a life settlement industry group, policyholders received approximately ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
