Life Insurance Settlement Association supports increased protection against scams

Oct 06, 2011

Life insurance policyholders must be protected against scams, one agency said.

The Life Insurance Settlement Association announced it has re-affirmed its long-standing support of efforts that call for state securities to ramp up protection and enforcement against scams and schemes that target individual investors.

The association said it has long been a proponent of laws that allow life insurance policyholders the opportunity to receive the highest value possible for their life insurance policies. They also want to see consumers and investors protected in life insurance settlements from scams by perpetrators of fraud.

"Tough economic times continue for many people, and it is all too easy for scam-artists to steal money from individuals through unscrupulous investment schemes and illegal practices," said Darwin Bayston, LISA executive director. "If we've learned anything over the past few years, there is a need for increased education among investors and stronger enforcement against those who would defraud people of their savings."

Ken Godfrey, a certified financial planner, writes on his blog that to help protect against insurance fraud, people should do a few things, like frequently review the statement and make sure statements are coming to the policyholder directly.

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