A New York and New Jersey Lawyer Who Represents Policyholders and Beneficiaries in Life Insurance Denial Cases

New Hampshire has enacted a law that places restrictions on the life insurance settlement business.

Here’s how the business works: an agent or broker approaches an individual about buying life insurance, the individual purchases a policy, and then sells the policy to investors for a percentage of its face value. When the individual dies, the investors collect the full face value.

New Hampshire has now made it illegal for agents, brokers, and investors to approach individuals to participate in this type of transaction. The individual can still do it on his or her own, but no longer can agents, brokers, and investors approach people out of the blue.

The law also extends the contestability-period in these transactions from two years to five years, presumably to place a curb on life settlements where it is known that the insured suffers from a fatal condition. Yet the insured may still sell a policy within that five-year period.

I have previously blogged about how this business is under investigation in Massachusetts.

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