Bill targets insurance predators
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Published: May 8, 2008
The Oklahoma Senate has given final approval to a bill aimed at protecting citizens from predatory investors who profit from life insurance policies. The bill, by Sen. Sean Burrage, was approved on Thursday and now goes to Gov. Brad Henry. Burrage said there is a growing national trend where unsavory investors provide a financial incentive for a senior citizen to purchase a life insurance policy and agree to sign over ownership of the benefits after a set amount of time has expired. The practice is called "stranger-originated life insurance" (STOLI) and is designed to provide investors with profits from the deaths of senior citizens. "Today, we took a step in the right direction to better protect Oklahoma senior citizens from financial predators," Burrage said. "Outlawing these types of transactions will make fiscal predators think twice about trying to strike a quick pay day in Oklahoma." "These moneymaking plots pervert the purpose of life insurance and prey on people in a time crisis. We have a responsibility to protect the benefits of our senior citizens and their families," he said.
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